If you live in a condominium, you may consider getting condo insurance. It covers a wide variety of damaging events that could result in losing your possessions. Even with its great coverage, it doesn’t cover everything to the fullest extent, and some occurrences aren’t covered at all.
Condo insurance covers these, but not always in full
Condo insurance is also known as HO-6 and isn’t limited to condominiums. Townhouses and co-ops are included here as well. It’s a good idea to get condo insurance because while you get coverage purchased by the condominium association. That in itself doesn’t cover everything.
When you get condo insurance, you’re getting coverage for named perils. Named perils are specific destructive and costly events listed in your policy. Some named perils have such a low likelihood of happening that their inclusion seems trivial. But that’s the nature of insurance – to cover you in financially crippling scenarios despite improbability.
Named perils to include:
- Injuries sustained on your property
- Damage from vehicles
Condo insurance may cover these, but it may not cover them in full. In this case, it’s a good idea to do what many condo owners do: purchase additional policies for extra coverage. This way, you improve your chances of paying $0 out-of-pocket. Loss assessment coverage and endorsement are examples.
Events not covered
When looking at the list of what condo insurance covers, you will find that natural disasters are completely absent. This doesn’t mention floods or earthquakes. In fact, natural disasters are even excluded from traditional homeowner’s insurance.
Your condo insurance will not cover other such sources of damage such as birds, insects, rodents, nuclear hazards, and the wear and tear your condo has developed over the years. Your policy will not list any of these as named perils.
Getting additional coverage
There’s good news for those who live in areas susceptible to floods and earthquakes. If you happen to live in a place where these natural disasters are relatively common, you can purchase flood, earthquake, and other types of catastrophic insurance separately.
These small additions are the difference between you having coverage and losing out on tens of thousands of dollars depending on the combined costs of your personal belongings such as clothing, decor, electronics, furniture, jewelry, and kitchenware.
When you don’t have additional insurance for natural disasters, you are not only having to pay for what you lost but the costs you paid to have condo insurance. That’s why you should consider other forms of insurance such as flood and earthquake insurance.
For all questions about condo insurance
At Redwood Agency Group, we help people like you find a policy that covers lost possessions. If your insurance policy doesn’t cover something, we’ll find another that will. Let us help you find the best condo insurance.