A standard condo insurance policy includes four essential types of coverage. They include:
- Coverage for the structure of your Condo
- Additions and Alterations coverage
- Coverage for your personal belongings
- Additional living expenses
- The structure of your Condo
- Liability protection.
Structure of your Condo
Additions and Alterations coverage
When purchasing coverage for the structure of your condo, it is important to buy enough to rebuild the inside of it. You may have upgraded from the base model, installed ceramic flooring instead of vinyl, etc… You would want to review your Unit’s Master Policy, so there is no coverage gaps in the event of damage to your Condo
Your personal belongings
Your furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disaster. The best way to determine what is enough coverage is to conduct a home inventory.
Expensive items like jewelry, furs and silverware are covered, but there are usually dollar limits if they are stolen. Generally, you are covered for between $1,000 to $2,000 for all of your jewelry and furs. To insure these items to their full value, purchase a special personal property endorsement or floater and insure the item for it’s appraised value. Coverage includes “accidental disappearance,” meaning coverage if you simply lose that item. You could also then choose to have a deductible or not.
Additional living expenses (ALE)
This pays the additional costs of living away from home if you cannot live there due to damage from a fire, storm or other insured disaster. It covers hotel bills, restaurant meals and other expenses, over and above your customary living expenses, incurred while your home is being rebuilt.
Coverage for ALE differs from company to company. You can increase this coverage, for an additional premium. Some companies sell a policy that provides an unlimited amount of loss-of-use coverage, but for a limited amount of time.
Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. So, if your son, daughter or dog accidentally ruins your neighbor’s expensive rug, you are covered. However, if they destroy your rug, you are not covered.
Your policy also provides no-fault medical coverage. In the event a friend or neighbor is injured in your home, he or she can simply submit medical bills to your insurance company. This way, expenses are paid without a liability claim being filed against you. You can generally get $1,000 to $5,000 worth of this coverage. It does not, however, pay the medical bills for your family or your pet.