Purchasing your first Condo?
Your first home purchase can be very exciting but also very stressful, especially when you are making the transition from renting to owning the unit. One of the most important things to consider as a new owner is condominium insurance. Why do I need coverage? Condo insurance is there to help protect you from the risks that arise with communal living and owning a property that is joint with others property. It is important to know the differences in coverage between renting and owning which is why I am going to help you navigate the variances.
In contrast to a renters insurance policy, condo unit owners coverage for the premises extends to the dwelling unit, garages, parking stalls, outbuildings, storage rooms/lockers, private entrances.
Improvements and Betterments
When you are renting a place, you are unlikely to use your own money to upgrade the unit because when you leave this isn't something you can throw into the U-Haul and take with you. These upgrades are considered part of the building and therefore cannot be removed. If you own the condo, you may be planning on upgrading your floor to your favorite cherry wood hardwood and your counters to luxurious granite. If an unfortanate fire in your kitchen occurs and destroys your newly upgraded floors and counter tops, unit improvements and betterments will kick in to protect you. Without this coverage, your kitchen will only be fixed to what it was prior to these upgrade.
Common areas can be identified as gyms, meeting rooms, swimming pools, lounge areas or anything that is considered a communal area available to anyone in the building. If a fire starts in the gym, all of the unit owners in the building can be assessed to pay for these damages. SGI will pay up to the amount of protection shown on your coverage page, therefore it is important you have adequate coverage.
There are many other important factors regarding your coverage to be aware of. Be sure to contact your insurance broker today so you can cover all your bases when insuring your newly purchased condo. Now all you have to do is figure out how to assemble that IKEA furniture!