Your condo association covers a lot, but it doesn’t protect everything. Having your own condo insurance is important to protect yourself against a wide range of personal loss and liability. While you enjoy the low-maintenance lifestyle of condominium life, you can trust that the condo insurance you purchased from Long & Company is at work behind the scenes to fill in coverage gaps and mitigate your risks.
Association Coverage – Your Master Policy
Condo associations are made up of the people who own condominium units in a particular development. Members pay dues to the association, of which a portion is used to pay for a Master Policy. This is insurance coverage that pays for the repair of covered damages to the common areas shared by the condo community, as well as shared liabilities.
It can also provide some coverage for the restoration of your condo unit after it is damaged or destroyed by a covered event. While some provide certain interior restorations, many policies only cover the exterior walls of a condo unit. Everything else is your responsibility to cover, from your personal belongings to the interior walls, structures, and finishes in your unit that are not covered by association coverage. When you work with an independent agent at Long & Company, you get the benefit of knowing your policy can be customized to fit your needs based on the coverage you already have in your Master Policy.
Types of Coverage
Wisconsin condo insurance policies typically contain several coverage sections, each of which outlines different protections and limits for various types of loss. Your policy will likely include coverage for specific structural aspects of your condo, the things you own, displacement, liability, and more.
This part of your insurance covers the internal structure of your condo that is not covered by your association’s coverage. This may include your cabinetry, interior walls, light fixtures, countertops, built-ins, doors, flooring, trim, and anything else that is a permanent fixture in your condo.
Generally, policies cover damages caused by a wide range of hazard events, including:
- Fire and smoke
- Wind and hail
- Theft and vandalism
- Fallen objects
- And more
Certain events may not be covered, such as floods and earthquakes. Talk to your agent to find out how you can obtain additional coverage for excluded events.
Condo insurance also covers your personal belongings when they are damaged or lost due to a covered event. This includes your rugs, furniture, and décor, as well as your clothing, jewelry, TVs, computers, and nearly everything else you may own. Note that certain categories of belongings may be subject to coverage limitations, such as your fine jewelry or firearms. Talk with your agent to learn how you can schedule additional coverage that extends to the full value of these items.
To determine how much overall coverage you need, take inventory of your belongings. Then, consider how much it might cost to replace all of those items in the event of a total loss. Finally, talk with your agent about the difference between actual cash value (ACV) coverage and replacement coverage. ACV coverage only compensates you for the depreciated value of your belongings. Replacement value covers the full cost of replacement with new, comparable items, which can save thousands of dollars in out-of-pocket expenses.
Temporary Displacement Costs
You shouldn’t end up homeless or sleeping on a friend’s couch if disaster strikes your dwelling. Instead, look to the displacement coverage in your condo insurance policy to help cover additional living expenses associated with finding a temporary place to stay after a covered event that leaves your home uninhabitable. This coverage can help pay for the extra cost associated with maintaining your standard of living. This can include a hotel room, laundry fees, restaurant meals, furniture rental, the cost to board your pet, and more.
Guest Medical Payments
When someone is injured in your condo, guest medical payments can provide compensation of necessary medical bills, regardless of whether you have any fault of negligence related to the incident. Although coverage is usually limited to a few thousand dollars or less, it may help you prevent a lawsuit.
Liability and Accusations of Liability
If someone accuses you of causing them injury or personal loss, condo insurance liability coverage can help pay for legal fees associated with a lawsuit. Although coverage excludes many incidents, such as car accident claims, it can help cover you against a wide range of situations, including those outside the walls of your condo unit. If you lose your case or settle out of court, this insurance can also help cover the cost of your liability – up to the limits of your policy.
Your condominium is part of a larger complex that contains shared community property. That means that any damages or liabilities associated with community property are also shared among the members of the condo association. If the association’s Master Policy does not provide enough coverage to pay for a particular loss or liability, the condo association may levy an assessment against its members, requiring everyone to share in the costs. Loss assessment coverage can help pay for unexpected assessments and minimize your out-of-pocket costs.
Wisconsin Condo Insurance Quotes
If you own a condo or plan to purchase one, be sure to protect yourself with an insurance policy that you can depend on when it matters most. For help shopping and comparing Wisconsin condo insurance options, contact your independent agent at Long & Company. We offer selection and affordability with the same friendliness and engagement you would expect from a local insurance office. We can also show you ways you may be able to save on condo insurance, from raising your claims deductible to insuring both your condo and vehicle with the same insurer.