There is something about having a condo that no other type of living affords in quite the same way – a combination of ownership and simplicity. Many people are attracted to the low-maintenance way of life that condo ownership provides, all while having the opportunity to build equity in a property that can be modified and decorated to the owner’s preferences and specifications. It makes sense that condo insurance should provide unique coverage that holds up to the distinct lifestyle of the policy-holder and the risks associated with living in a condominium. At Strobel Insurance, we can help you better understand your coverage options and point you towards a policy that minimizes your exposure to financial loss.
Condo Association Coverage – The Master Policy
Before you can make decisions about your individual condo insurance policy, you first need to understand what is in your condo association’s Master Policy. This is the coverage that protects all members of a condo association against shared loss and liabilities associated with public spaces and the external structure of your building. There are varying degrees of coverage offered by condo associations. Some may cover the restoration of your condo unit to original construction specifications, whereas others may only cover the rebuilding of the external walls of your unit. Your individual coverage should pick up wherever your association coverage leaves off, leaving no compensation gaps in the event of a loss.
Understanding Your Individual Policy
When you work with Strobel Insurance, we aim to make shopping for coverage as simple as possible. We can explain the details of your coverage and answer any questions you may have both now and in the future. We can also break down the elements of your policy, including your coverage for:
Your Condo’s Structure
This part of your condo insurance is customized based on the coverage in your association’s Master Policy. It covers the structural components of your condo that are not covered under your association’s coverage. This may include the interior walls, finishes, trim, flooring, fixtures, cabinetry, and more. Generally, condo insurance protects against a wide range of loss events, such as fire, wind, and theft. Consult your policy and agent for more information about the types of events included and excluded from your coverage. Additional coverage may be available in the form of endorsements or stand-alone coverage for damages caused by an earthquake, flooding, and other standard coverage exclusions.
Your Personal Property
If your condominium is destroyed, chances are everything inside it will be a total loss, too. Personal property coverage compensates you for the loss of your possessions – including those that are damaged or stolen due to a covered event outside your home. The average person owns tens of thousands of dollar’s worth of personal belongings, all of which could be gone without notice. Personal property insurance can help you recover from a partial or total loss with minimal out-of-pocket cost.
Talk to your agent about your choices and coverage needs regarding your personal property. Standard condo insurance may only cover the depreciated value of your belongings (also known as ‘actual cash value’). By increasing your coverage to replacement value protection, the insurance company instead compensates you for the cost of replacing damaged items with new ones.
Note that property owners often underestimate how much it would cost to start over again with no possessions. A home inventory can help you calculate how much personal property coverage you actually need.
Your Displacement Costs
If condo damage forces you to find a temporary place to live, condo insurance can help cover the cost. Living in a hotel or renting an apartment can be costly – especially if you are still paying a mortgage and association dues on your condominium while it is being repaired. Displacement coverage helps compensate you for additional living expenses until you can return home again.
Your Liability and Guest Medical Expenses
You do your best to create a safe space for your guests, but accidents can happen. Liability insurance helps protect you against court costs and legal fees if a third-party sues you for compensation of property damages or injuries. It can also pay for judgments against you if they win their case. We recommend high liability limits, as you may be responsible for personally paying for any damages that exceed the value of your coverage.
Your condo insurance may also include coverage for guest medical bills. This is not liability protection but is instead limited, no-fault coverage that provides compensation of necessary medical expenses when someone is injured in your home, regardless of who is responsible for the incident.
Your Loss Assessments
If your condo association’s insurance policy falls short of fully covering a liability or other loss, the community shares the responsibility of the remaining costs. Your condo insurance can help cover your share of the expense, also known as a ‘loss assessment’.
Wisconsin Condo Insurance Quotes
Don’t take risks when it comes to your condo insurance policy. Talk with an agent who understands Wisconsin condominium insurance and can help you assess your coverage needs. At Strobel Insurance, we can help you shop and compare coverage and rates from several of the state’s leading insurers. We will answer questions, offer recommendations, and even look for money-saving discounts that could lower your cost of coverage.
For more information about Wisconsin condo insurance or to request your free quotes, contact our office today.