Is Your Condo Protected?

Condo Insurance Basics

When you buy a condo, you are buying more than a home – you are buying a part of a homeowners association, or HOA. HOAs are set up in order to protect everyone living in the community, as well as all of the shared spaced. Knowing just how much protection is provided by your HOA can help to determine how much insurance you need to invest in. Make sure to ask your HOA these questions before you invest in your own policy.

  • What is covered by the master policy? The master policy is the insurance that is provided by the HOA. These policies will typically provide coverage for all common areas, such as the gym and pool, as well as the exterior of the buildings.
  • Is liability covered? Typical master policies will only provide liability coverage for the common areas, not for incidents that happen within your unit. Investing in your own liability insurance coverage will help to ensure that you are not financially devastated from one accident.
  • Will renovations be covered? Since typical master policies will not cover the interior of your unit, most renovations will not be covered. However, if you renovate any permanent structures, such as the cabinets in your kitchen, your HOA may cover it, so make sure to ask.
  • Is cash value or replacement cost coverage better? Cash value will replace any item that is completely destroyed, minus the depreciation. If you opt for replacement cost coverage, you will get a check for what it will cost to replace any item that has been destroyed with a new model.

Contact the insurance experts at Humble & Davenport Insurance in Renton, Washington for all of your condo insurance needs. We will work with you to make sure that you invest in the right amount of protection, all at the right price.

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