When you move into a condo, you will get a copy of the HOA insurance policy. It is a good idea for you look at all of the paperwork and determine what coverage you have and if you will need to purchase some of your own coverage to be protected. In most cases, you will need to at least get coverage for your own personal items because the standard HOA insurance will not cover this at all.
There are two main types of HOA insurance that can be found on a condo that you choose to live in. These include the all-in coverage and the bare-walls coverage. There are some differences that will come with these two, so researching them and learning more will help you know what to expect and will prevent any significant gaps showing up where you think you were covered and find out later that you did not have that coverage.
First, we can take a look at the bare-walls coverage. This is going to be an insurance product that will cover all of the bare walls in the condo and all of the things that are inside the walls. This would be items like:
# HVAC
# plumbing
# Electrical
The idea with this one is that it is tough to know who would cover any of the damage that occurs to a wall or to the items inside a wall because this is shared by more than one owner in the condo. So, the insurance policy will do the coverage here.
Then there is the all-in coverage. When we look at this level of condo insurance, we will go a bit past the bare-walls coverage. This can include all of the installations and the appliances that are in the condo. Some examples will include:
# Countertops
# Appliances
# Stoves
When your condo decides to go with this kind of plan, it is going to be important for all of the residents to take a closer look at all of the items that are covered so you know what you need to have in your own insurance policy.
There are different types of HOA insurance options that you can choose. Some choose to move into a neighborhood that has an insurance policy for the HOA and others will move into a condo that will have the HOA insurance in place as well. Understanding the different types of HOA insurance and how they work, especially when it comes to living in a condo, can help you make a smart decision on where you live and whether you will have some of the coverage that you need for your new home.
