You’ve taken the plunge and opted for condo life.  Now that the papers are signed, it seems like everything is taken care of for you—building maintenance, roof repairs, landscaping, insurance, etc.  It’s time to relax because everything is covered, right?

Not quite.  The insurance policy provided by the condo association covers the building structure and common areas, but what about potential structural damage to your unit and covering your belongings?  Without a personal condo insurance policy, you could be left high and dry if your unit floods, is damaged in a fire, etc.

Most condos need two insurance policies.

Master Policy:  Generally provided by your condo association, this policy covers the physical structure of the building, including basement, roof, walls, elevators, lobbies, etc.  Coverage usually includes both physical damage and liability. Get a copy of the policy so you know what’s covered.

Personal Condo Policy:  This will cover additional structural damage to your unit, including cabinets, appliances, personal belongings, and more.  This also covers living expenses if you fall victim to a fire, theft, or other covered disaster.  Many insurance carriers, such as Safeco Insurance^TM, offer enhancements that include personal property protection in your condo insurance policy. Safeco’s Full Value Contents^® protection will pay the full replacement cost of your belongings, not just what they are worth today.

Blanket personal condo coverage: This approach to condo insurance is the most comprehensive. It can be difficult to determine how much building item coverage you need as an individual unit owner as every master policy and CC&R’s are different. Blanket condo insurance combines both building items and personal property into one limit to be used as necessary under any one claim.

Other coverage to consider:

Umbrella Policy:   If someone were to trip and fall inside or near your condo, they could sue both you and the condo association.  Umbrella provides additional layers of liability protection and can protect against lawsuits that target both your current and future earnings.

Flood or Earthquake:  Read the fine print on your policy.  They often won’t cover damage due to these disasters.  Additional coverage may be required if you live in a prone area.

©2011 Safeco Insurance Company of America, member of Liberty Mutual Group, 1001 Fourth Avenue, Seattle WA 98154. All rights reserved