There is a misconception among condo owners that they do not need to carry insurance on their property. Unfortunately, while it’s true that condominium corporations are required to take out insurance on the buildings themselves, their insurance policies do not cover everything. Even those minor and major disasters that they do cover often come with huge deductibles, and those deductibles are usually the responsibility of the condo owner.
For example, if a pipe bursts in one person’s condo and it damages the unit beneath, the owner of the unit with the burst pipe will likely be held responsible for paying for at least some, but often all, of the damages incurred by the bottom unit. Similarly, if a faulty stove causes a fire, for example, the owner of the unit in which it originated will likely be held responsible for paying the deductible on the corporation’s policy. Most condo owners find this realization alone to be reason enough to purchase comprehensive Condominium Insurance in Monterey, but there are more, equally compelling, reasons as well.
Chances are the building’s insurance policy covers only the common areas, such as lobbies and elevators. It is extremely rare that a condominium corporation’s insurance policy will cover the condo owners’ personal belongings. That means that, in a worst-case scenario such as a serious fire, the insurance will pay to reconstruct the building, but it will not pay for any damage to property being kept in any individual units.
Any condo owner who hasn’t yet been convinced of the importance of purchasing a private insurance policy should also consider the fact that the building’s policy is very unlikely to cover personal injuries occurring in an individual unit. That means if a guest is injured, he or she can sue the condo owner for damages. It’s worth looking into the particulars of the corporation’s policy, but in the vast majority of cases, their insurance will not cover anything that occurs within specific units.
It’s important to note that condominium renters require rental insurance rather than Condominium Insurance in Monterey. Anyone who is unsure as to what their options are, or what will and will not be covered under their current insurance policies, should visit us website for more information, or get in touch with an agent, today.
