Owning a condo can be a great long-term investment, and a more affordable way to enter the real estate market. When you do buy a condo, you will likely be required by your mortgage and homeowners association to purchase condo insurance as well. Even if it is not a requirement, purchasing insurance on your condo can be a great idea as it will provide you with a number of different benefits.
Condo insurance is essentially a type of insurance coverage that is designed for condo owners. When you have a condo, the amount of insurance that you will need is often lower than what a single family home owner will need. This is because a lot of the insurance coverage will already be covered by your homeowners association. As opposed to having to cover all of the structure and roof of the home, a condo policy will be limited to covering what is beneath the walls and below your ceiling.
When taking out an insurance policy for your condo, you will benefit several different ways. One way that it can be beneficial is that it will provide you with property damage coverage. In the event that your condo is damaged by fire, water, or any natural hazard, you will need to have the property damage coverage available. The insurance coverage will promise to cover any type of damage and could be used to either reimburse you for cost of repairs, or could be used to reimburse you for the full value of the condo in the event of total damage.
A good insurance policy for your condo will also provide you with some sort of liability protection. Whenever you own a home, you are taking on some form of liability. In the event that you have a guest that slips and falls and hurts themselves, you will have liability coverage to protect your financially if you are sued. Furthermore, if there is a leak in your condo that damages the condo below your in your budding, the insurance company will be able to provide you with coverage to fix the leak and the damage that you are liable for.