Condominiums are an excellent alternative to single family homes. Owners enjoy the tax saving benefits of owning their residence with little responsibility for outdoor maintenance. Condos often offer extra amenities to its residents such a pool or gym that can save them from having to purchase memberships elsewhere. If you’re thinking about purchasing a condo, here are four things to know about protecting your investment before you buy:
- Common areas such as the stairs, hallways, swimming pool, clubhouse and walkways are managed by the condominium association.
- You’ll need a specific property insurance policy designed for condominiums.
- Understand if you need “walls in” or “walls out” coverage to avoid gaps in coverage (i.e. do you need to insure the pipes and wiring between the walls which is considered “walls out” or just the carpeting, painting, etc. from the “walls in”?). The state and condo association determine the requirement.
- The unit owners’ form addresses what should is the responsibility of the unit-owners’ insurance and the association’s insurance.
Each state has different policies concerning condominiums. Review these statutes with your agent to ensure you understand your responsibilities before you buy or contact a knowledgeable AssuredPartners NL Agent at (888) 702-0901 to learn more.
Source: PropertyCasualty360 and the Condominium Insurance Coverage GuideShare This: