Tips For Getting The Right Home Insurance For Your Condo
Are you in the process of buying a condo for the first time? If you are, you will need to also buy home insurance. This is something you must do when buying any type of house; however, buying homeowner's insurance for a condo is not exactly the same as buying homeowner's insurance for a single-family home. Therefore, here are several things you should know as you begin looking for the right insurance coverage for your new condo.
Find out the coverage the HOA provides
The biggest factor you must consider when buying condo insurance is the type of insurance the HOA has for the condos in the community. The type of coverage the HOA has will determine how much coverage you need. Some HOAs have policies that cover a lot more than other types of policies, so make sure you ask about this when buying a condo. To be specific, ask the HOA what type of master policy they have.
You will likely hear one of two answers. The first type is called a bare walls-in policy, which is a lower type of coverage than the other option, which is called an all-in policy. An all-in policy is one where the HOA's insurance plan covers the entire condo, including the interior building components of the house. With the other type, it only provides coverage of the outside of the condo. You would need more home insurance coverage if the HOA's master policy is only a bare walls-in policy than if it were an all-in policy. An insurance agent will ask you about this when you call for a quote, so it is important to know the answer to this question when requesting a homeowner's insurance quote.
Determine the value of the condo and your things
Next, you will have to make sure you buy coverage that is high enough to cover all the risks you have with your house as well as your belongings. If you are not sure how much to get, ask the agent. The agent can give you a recommendation based on the value of the condo you are buying, and you should follow the agent's recommendations.
If you are buying a condo or any other type of home, you probably will not be able to close on the property unless you have insurance in place for the home you are buying. Call an agency of your choice today to get a policy started so you can avoid problems at your closing.