Owning a condo is similar to owning an apartment. You own your living area, but you don’t own the exterior structure or the land. This means that homeowners insurance won’t serve the needs of a condo owner. That’s why condo insurance is available to cover personal belongings and liability issues.
Liability provides financial benefits in case you’re sued or responsible for someone being hurt in your cond. If a friend slips on your wet kitchen floor and breaks an arm, then liability coverage may pay for medical bills and other expenses. Coverage may also pay for repairs to your condo when damage is caused by fire, theft, or some other mishap.
There is coverage for your personal belongings, such as furniture, electronics, appliances and clothes. Choose a coverage limit based on the value of your belongings. Depending on your policy, displacement coverage may be an option as well. If you are displaced from the condo because of significant damage, then condo insurance might help pay for temporary housing.
Condo insurance generally isn’t required, but it’s always a good idea. And if you have a mortgage, then your lender may require you to have coverage. In any case, this insurance is generally affordable and not too expensive. The deductible is due each time you file a claim, so choose a deductible that is affordable enough to pay.