Condo owners have unique insurance needs given the nature and location of their properties. As owners of individual units and boasting collective ownership of communal property areas, determining which forms of insurance are required can be daunting. While condo association coverage will pay for damages and liability issues concerning the exterior of a condo unit, each unit owner will have to have his or her own individual plan for the unit interior and all of the contents it contains. If you’ve recently bought a condo or Downtown luxury high rise condo, here’s what else you need to know about condo insurance.
How Condo Insurance Differs from Condo Association Coverage
Condo insurance is unit-specific. These plans protect condo owners from claims resulting from physical injuries that unit visitors sustain in individual units. This coverage also protects condo owners against theft, vandalism and damages resulting from floods, fire and other unexpected events that occur in their units. It does not pertain to any items or events that exist or occur in shared common areas and it is bound solely in the interests of the condo owner.
Your Lender Requires Condo Insurance
When you purchase a condo with funding from a lending institution, you’ll need to cover this property with sufficient insurance for meeting your lender’s demands. If you don’t bind coverage that pertains to the interior of your own unit, your lender will bind it on your behalf and back-charge you for the related costs. This policy ensures that your lender’s financial interests are always protected and must be maintained throughout the lifetime of your loan.
Life Without Condo Insurance
If you’ve paid off your mortgage or if you’ve made an all-cash purchase, you aren’t necessarily required to maintain this coverage, but having a policy still makes sense. Should someone trip and fall, get hit by a falling object or sustain some other injury while in your unit, this coverage will pay for the resulting medical expenses and settlement fees. Boston luxury condo insurance will also give you fair compensation for all damaged contents and structural harm that occurs in any unexpected and covered event.
Figuring out what’s what before, during, and even after buying a property can be challenging without the right support. At 92101 Urban Living, we help our clients through each step of the process—from finding the space of their dreams to understanding the full obligations of condo ownership. Check out our inventory of Boston luxury high rise condos.