Before you officially hold the keys to your new home, the bank or lender will require documentation stating that you have purchased an insurance policy. So where do you start? Does a new condo policy differ from a homeowner’s policy? What’s covered by the community’s association?
To help you select the right type of coverage for your new home and mitigate the risk of damage from theft or loss, here are three things you need to know about new condo insurance.
Different Terms: Houston Condo vs. Houston Single-Family Home
When it comes to the way certain terms are defined within an insurance policy, there are differences between condo coverage and single-family home coverage. As this article explains, the way an insurance company defines primary dwelling, personal property, and other structures, will impact the coverage you will want to select. Read each company’s coverage carefully to ensure that you are selecting the one that best protects what you own.
Homeowner Association And Personal Property Insurances
As this article explains, for your specific new condo unit, the insurance policy should cover the interior walls, appliances, and attached structures, like an attached garage. Your personal property (condo insurance) is also covered by your insurance policy—and not your homeowner’s association. The building exterior, grounds, common areas, and other structures are typically covered by the condominium association under what is called a master policy.
The specifics of what will be covered will vary from association to association, so review the bylaws to understand the details. (You can ask your association for a copy of the bylaws if you don’t already have one.) Also, ask about flood, water, and natural disaster coverage so you know what you’re responsible for—or what you might need to cover in your individual policy. Part of your monthly or annual association dues is allocated to this master insurance policy, so you have the right to know exactly where your dollars go. Request a copy of the master policy so you can see specifically what is covered.
Compare Several Policies
When searching for a new condo policy, it’s to your advantage to get quotes from multiple carriers. The premiums will vary, as will the coverage, and the more you know, the better positioned you will be to make the right decision.
The right new condominium insurance policy will save you time and money in the longer term, so ask questions, conduct reviews, and get all of the documentation organized up front. Revel in the excitement of your new home because with the appropriate insurance policy, you can look ahead… and leave the worry far behind.
