Building or buying a condominium is no small decision. It could take years of planning and hard work. But there are plenty of forces, natural or not, that could strike at any moment and crumble that dream.
An insurance policy saves you some grief if such a calamity strikes. Choosing one like a condo master policy may come with some misgivings. These myths are best resolved at the earliest to get the most out of your policy.
Clearing the Myths
Word of mouth regarding condo master insurance is abounding, and so are some myths. It helps to clear them for getting the right coverage for your property. Some measures are also available to navigate any potential risks that could come with the misinformation.
One for All
A condo master policy is primarily designed to offer coverage for the property as a whole. This includes the common shared areas, and sometimes, the interiors too. This, however, doesn’t mean that the individual units of the condo are covered, including their furnishings, etc. The occupants of those units are to cover them under their housing insurance plans.
The master policy covers damages to compound walls, sidewalks, common area properties such as furnishings, lights, etc., depending on the policy chosen.
The Tenants Will Pay For It
This is a common myth that is held by many owners, especially the newer ones. They will believe that the occupying tenants of the units will pay for the policy. This is not true at all, as it is always up to the owners to pay for the policy.
It’s a One Size Fits All Solution
There is a variety of coverage applied to condo master policies, and the owner should choose the policy that suits them the most in terms of coverage and budget. Many people will be of the assumption that one type of policy will cover everything that exists in their property.
The typical types of coverage include Bare Walls-In, which covers just the structure inside, and the Single Entity handles the above plus some furnishings without any upgrades. All-In covers everything there is to cover.
Any Eventuality Is Covered
Owners need to opt for the events that could damage their condo, instead of believing that their policy will cover all damages. Different policies have different cause-of-damage coverage clauses and associated premiums. It could also depend on the likelihood of those occurring in the region. Knowing the cause-of-damage covered will help you avoid problems during claims.
The Owners Will Hold It
While the condo master policy will be issued under the owners’ name, it is the Home-Owners Association or the Condominium Board of the condo that gets to hold the policy. It helps unit owners as their mortgage providers will require such insurance to gauge the mortgage amount.
All Liabilities Are Covered
Many insurance companies offer different layers of liability coverage with their plans. These tend to be add-ons to the original policy. They will add to the premium to be paid. General liability will only cover the costs of bodily injury and commercial property damage.
If you need coverage for fire damage, financial malpractice liability cover for senior employees of the association, or self, overall liability umbrella, opt for them separately.
Master policies for condominiums offer great protection for great value. Clearing the path to one by removing the myths about them will help you stay protected for cheaper and better.