Whether you are preparing to move into your new condo or exploring new coverage options for the place you’ve called home for a while now, AFI Insurance can help you build a personalized policy that protects the expensive things in your life, from your personal belongings to your financial assets. We understand that as a condo owner, your property is insured by both your personal policy and the master policy owned by your condo owners association. Our goal is to help you find the balance in your coverage to help prevent expensive gaps in your protection.
What Could Go Wrong?
When a good day suddenly takes a turn for the worst, you need to know you are safeguarded against financial devastation. The right condo insurance policy can help protect you against many different situations, examples of which include:
- A fire that ravages your condo, destroying the inside of your home and everything you own
- A burglary that results in the loss of your expensive fine art collection
- Being sued for a pedestrian’s injuries if you hit them while biking
Understanding Your Condo Association’s Master Policy
One of the benefits of living in a condo is the shared responsibility for general maintenance and public spaces. That means all association members share responsibility for damages to the building structure, as well as for any accidents that may result in financial liability. For that reason, a portion of the condo association fees are usually allocated for the purchase of a master insurance policy, which covers damages and liability from certain types of accidents and events.
It is important to note, however, that the condo association policy does not cover everything – particularly the inside of your unit. For that, you will need your own private coverage. At AFI Insurance, we help you figure out where your association’s master policy leaves off so that you can determine where your private policy should begin. For example, some master policies may cover the structure of your condo, as well as the interior walls and certain finishes. Others may not cover any interior structures or fixtures at all, instead only reconstructing the outside of your condo.
Types of Condo Insurance Protection
Condo insurance reduces your risk vulnerability and covers the inside of your condo, corner to corner. Although there can be variations in coverage between different Illinois insurers, a typical condo insurance policy may include protection for:
Structural Property Coverage
This part of your condo insurance is the part that outlines coverage for the rebuilding or repair of the inside of your home, including your walls, floors, baseboards, moldings, countertops, cabinetry, and fixtures. It can usually pays for repair or replacement of the items and upgrades that are not covered by your master policy.
Personal Property Insurance
This part of your condo insurance protects you against loss, damage or theft of the things you own that are not a fixture within your condo unit. In general, this includes most of your possessions, including those items that may not be stored inside your condo unit. A home inventory can help you determine how much personal property coverage you might need in the event of a total loss. Examples include your furniture, rugs, electronics, kitchenware, and wardrobe, as well as high-value items such as fine jewelry and furs.
Keep in mind that certain categories of expensive items may be subject to ‘special coverage’ caps that restrict the amount you can be compensated for their loss. If you own several high-value items, consider scheduling additional coverage for those belongings in your policy.
Liability Insurance
Liability insurance pays for judgments, court costs, and legal fees when you are sued for a third-party’s bodily injuries or property damages. This could include accidents that occur inside your condo, as well as incidents that occur when you or other members of your household are away from home. Choosing high-limit liability protection can help safeguard your income and assets against major litigation that might otherwise threaten your financial future.
Medical Payments Coverage
It’s not liability coverage, but it does provide limited coverage for medical bills when someone is injured in your condo – no questions asked. No fault needs to be established; instead, the injured party is compensated for medical bills up to the amount you choose in your policy. For minor to moderate injuries, this may be enough to help deter a potential lawsuit.
Temporary Living Expenses
If you need to find temporary housing because your condo is too badly damaged to live in, your condo insurance can help pay for your excess living expenses. This may include the cost of your hotel, as well as any meal or laundry expenses you incur due to the loss of use of your home.
Loss Assessments
Lastly, your condo insurance policy will likely include coverage for loss assessments levied against you by the condo association. These usually occur when a claim against the master policy exceeds the available coverage limits. In those circumstances, any excess damages or liability will become the responsibility of the association members. Loss assessment coverage can help you pay for these unexpected expenses when they arise.
Condo Insurance Quotes in Rolling Meadows
Condo insurance is a highly personalized insurance product that should be built upon your unique risk exposures and preferences. We recommend working closely with your independent agent to understand each type of coverage and what it would mean for you should you need to file a claim.
If you are a Chicago area condo owner or plan to purchase a condo in the near future, let us help you build a policy that fits your needs and preferences. Contact our office today to request your free condo insurance quotes. We look forward to serving you soon.
