Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.
Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.
Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners’ responsibility.
It would surprise you to know how many tenants have all the latest in technological gadgetry, yet have failed to insure their contents.
Renters insurance (also referred to as contents insurance) is extremely low cost and provides two important protections:
- Contents: All of the tenant’s personal property is covered for a determined amount. The coverage is written on a named peril form, and replacement cost endorsement is usually purchased
- Liability: Liability is any bodily injury or property damage that takes place do to a tenant negligent act.
- Dog Bites
- Slip and Fall in the premises
The condo owner is responsible for the inside of the condominium. This means that they are responsible “from the drywall in” (including the actual drywall). The association is responsible for the framing, electrical in the walls, plumbing in the walls, heating/cooling duct work in the walls, window/door wall frames, exterior doors, and other construction issues.
Condo owners should purchase insurance to rebuild the inside of their structure. This includes all permanently installed interior items such as light fixtures, bathroom fixtures, kitchen fixtures, fireplaces, carpeting, wallpaper, paint, hardwood floors, tile, countertops, finished trim, furnace, hot water heater, water softener, A/C condensing unit, interior doors, all improvements and betterments installed by and paid for by condo owner, drywall, window/door glass, etc. This coverage is known as your dwelling limit.
Condo owners should purchase Contents Insurance to replace the personal property inside their condominium. Contents are defined as any item not permanently installed or built into a structure (furniture, lamps, appliances, books, kitchen goods, etc.).
Provides for extra expenses in the event of a covered loss. This pays for hotel, motel, apartment rent, mileage reimbursement and other extra expenses generated after a loss.
Provides liability protection for any negligent act by you as the owner of the condominium. Liability protects you against legal action when another party is seeking a legal award.
The coverage mentioned above does not imply all condominium policies are the same. Consult the Master Policy for exclusions and limitations of coverage, and consult a personal insurance condominium policy for exclusions and limitations of coverage.