Apart from the obvious differences between houses and condominiums, is an important difference to take into account the type of insurance coverage they need. While owners require insurance on all its properties, the condo owners are generally responsible for covering only a portion of their property. It is important to know what type of insurance you will need, depending on what your condo association requires. You do not want to end up spending no more than what they have to cover things that your association and cover, or not buy enough insurance to cover things that your association does not cover.
A condominium association is very similar to a homeowners association. The two areas to monitor and maintain the neighborhood common or complex in the case of joint ownership. The two also collected monthly or yearly fees to pay for maintenance. The main difference between the two is that condominium associations also use some of the money collected from the owners to pay the insurance of common areas, the condo building itself and liability insurance association. The theory is that all the condo owners are collectively responsible for the areas that are shared between them. In general, condominium owners are responsible for their own unit and the condominium association takes care of everything (through premiums) beyond. You may know exactly what is covered and what is not seeing the political control his condominium association. Even if your condominium association can cover a large number, have always advised the owners of insurance and individual units. This will protect you if your condo is divided into, if there is water damage inside, or if anyone injured inside the unit.
Some policies cover the entire unit, external walls, including interior accessories such as floors, countertops, sinks, etc. Other policies may cover less than that, it is not uncommon for a policy to cover the actual condominium buildings (walls, floors, ceilings), but not the interiors such as countertops, cabinets, sinks, etc. the condo owners whose associations have less coverage for individual units that have a greater need for individual insurance for their homes. While owners tend to start to secure their property and out of the condo owners to do exactly the opposite. Should evaluate interiors (furniture, electronics, etc), then calculate how much of the structure are individually responsible.
After deciding exactly what be covered in your apartment, you have two options for this type of insurance to obtain. You must decide between the replacement cost coverage or cash value. On the cover of cash value is calculated, while replacement cost coverage, it is not. For example, say you had to replace a laptop and five years. Cover cash value of your insurance company See how much you paid for the laptop, the calculation of amortization of five years and send you a check that the laptop was worth it today. In terms of replacement cost coverage, the insurance company pays for this would cost to replace the current laptop. As any insurance status, should assess the risks to decide how much insurance you want to buy. replacement cost of insurance usually costs more than cover the value species but could end up saving money if you need to replace something.
As for the coverage of the Association is another important aspect to consider is the franchise. In most cases, the testimony of the association does not cover all damages, This leaves a franchise for condominium owners to pay. This franchise is shared between the owners of condos, so its good to know how much insurance the association will focus on: the left is more to their respective owners. Another element key to be covered in the framework contract is what happens when other owners have adequate coverage? Tell a landlord can not pay its share of the franchise. Is it responsibility transferred to other owners? This must be defined in the policy, and if not, ask!
Although it may seem like a lot of work today studied and understood the insurance cover for your condominium association, it is worthwhile. The best way to protect yourself and your money is to make sure you know exactly what you have to pay or which may, in specific situations. With this understanding, you can not spend more than necessary to cover the things that have already given their association.
Brett Meade is a Seattle condo listings specialist, for RE/MAX Metro Realty. He focuses on Queen Anne Condos for sale.