Common Condo Insurance Mistakes

Common Condo Insurance Mistakes

Oct 05 2021

Common Condo Insurance Mistakes

Buying a condo may be the start of an exciting new chapter in your life. Whether it will be your primary residence or just a vacation home, protecting it will now be one of your biggest priorities.

Whether this is your first time purchasing condo insurance or feel your current policy could use a review – our team at Bearingstar is here to help you.  We will help you navigate your policy to be sure you have the best coverage at a competitive rate.

What Is Condo Insurance?

If you live in a condominium or are looking to buy one, you can typically count on the condo or homeowners association to insure the actual building and common areas, but it won’t help you if your personal belongings are stolen or destroyed in a fire. For those and other potential disasters, you’ll need a condo insurance policy, also known as HO-6 insurance.

To understand what is covered, you’ll need to talk to a trusted Bearingstar agent about what different insurance carriers can offer, but here are a few common instances that may be included in a condo policy:

  • Damage caused by smoke or fire
  • Damage due to an explosion
  • Vandalism in your condo
  • Theft in your condo
  • Damage caused by hail, wind, or natural disasters
  • Accidental injury caused to a guest
  • Problems in your condo’s plumbing such as burst pipes
  • Alternate living expenses in case there’s severe damage to your condo and you need stay in a hotel

What may not be covered:

  • Wear and tear to the condo interior
  • Intentional injury caused to any person inside the condo
  • Damage caused by rodents, insects, and birds
  • Damage caused by sewage problems

Now that you know what may and may not be covered, here are some common mistakes to avoid when obtaining a policy.

  1. Selecting an Insurance Company Based Solely on Price
    The problem with this is that a cheaper policy can mean less coverage. What you save on a premium you could lose in coverage and that might end up costing you thousands in the end. Get quotes from you agent from a few insurance carriers. You will have more choices to get great coverage at a price within your budget.
  2. Ignoring Deductible Costs
    A higher deductible can mean a lower premium.  However, it is important to consider what you can afford if you have a loss.  You could run the chance of paying unknown expense out of pocket. The lower you set your deductible, the higher your premiums. However, if you file a claim you could pay less out of pocket before the insurance company covers the claim.
  3. Not Reading The Fine Print
    How many times have you heard “read the fine print” when signing a document? We bet you’ve heard it a number of times but very rarely do people actually take the time to do it. Without knowing everything in your policy, you might have gaps in coverage or miss mistakes that can become costly down the road. And, if you sign a policy and find a mistake afterward, you may be held responsible for it. You’ve made a big investment by purchasing a condo, don’t risk losing it because you didn’t read through your policy.
  4. Having Insufficient Coverage
    Perhaps one of the biggest mistakes anyone can make when it comes to any type of insurance policy is not having enough coverage. If you don’t value your possessions properly, it’s likely you might end up paying the difference if you experience a loss or disaster strikes. Take the time to review and value all your belongings to ensure your insurance covers their true costs.
  5. Not Understanding What Your HOA Covers
    Your homeowner’s association master policy will cover damage to the exterior of your condo building. Also, it can cover accidental injuries that occur in common areas or any damage to communal space. Anything that happens inside your individual unit is typically your responsibility. Before you move in, ask your association for a copy of everything they will cover.

Still have questions?  At Bearingstar we are here to help with your condo insurance needs. Our Bearingstar agents are here to help you navigate your way to the best policy to protect you and your loved ones.  Give us a call today!

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