If you own or looking to purchase a condo in the Austin, TX area, you may want to consider these 5 questions about insurance. Homeowners and condo insurance differ and it helps to know the differences. For example, condo owners typically insure just their portion of the property they own, but this can vary. It’s good to ask the right questions to be sure of the proper insurance coverage.
- What does the condo association’s master policy cover? It will help you understand which the association dues include common areas and what you may be personally responsible for insuring. Often you would be responsible for the area within the four walls of your condo, but ask to be certain.
- What is the association deductible? Condominium association insurance if usually commercial insurance for the commonly shared building(s) and common areas. If something significant happens, it is possible that the condo owners share the deductible. If there are ten owners, then the deductible would be divided by ten. Find out your possible financial responsibility.
- How much coverage is adequate? After knowing which area of the condo you’re individually responsible for, then you’ll need to determine the amount you need.
- Do you want a cash-value or replacement-cost policy? After the amount of coverage is decided, then you need to choose which type of insurance you prefer. Cash-value will replace the value of the insured item less depreciation. Replacement-value coverage will cover the cost to replace the old item with a new one.
- Did you insure the contents and structure? You want to cover the internal structures, such as flooring, countertops, carpeting, lighting, and cabinetry.
The Policy Source
The Policy Source provides insurance to the Austin, TX community. Contact a Policy Source agent today to explore your condo insurance coverage needs.