Condo insurance is beneficial for condo owners
Among the many differences between owning a home and owning a condominium unit is the difference between how the two dwellings are insured. If you own a condo, you likely need condo insurance.
Condominium insurance has similarities to both homeowners insurance and renters insurance. It covers your individual unit and your possessions against losses due to damage from fire or weather or from theft. However, it does not cover damage to the building in which you live.
A condo policy generally is for anyone who owns a condominium. However, whether you need a policy and how much coverage you need may depend on the condo master policy that covers your building. If your condo master policy covers only the building and common areas but not individual units, then you definitely need your own condo policy. If the master policy covers individual units, you may be able to get by without your own condo policy, but it might still be a good idea to have a small one. Your condo association documents or handbook should tell you whether your condo master policy covers your individual unit. If you are unsure, you should ask your condo board.
Your condo policy works much like homeowners or renters insurance. If your unit is damaged or burglarized, you will need to make a claim with your insurance company. After paying your deductible, you will be reimbursed for covered losses.
Different types of coverage in existence
The main types of condo policies are dwelling coverage and master policies. Dwelling coverage covers your individual unit against damage and theft while a master policy covers the building and common areas and may or may not offer coverage for individual units.
The benefits of having condo insurance are similar to those of those of other types of property and casualty insurance, which include protecting your home and belongings from damage and theft. Even if your condo master policy covers your unit, you might save money and get damage repaired faster if you have your own condo dwelling policy.