3 Things to Know Before Buying Home Insurance for Your New Condo
As you shop for a home to buy, you might find some condos that you like. Buying a condo is like buying a single-family house, yet there are some differences between these home structures. One difference is the home insurance you need for each type of structure. Buying condo home insurance is slightly different, and here are three things to know as you prepare to buy a homeowner's insurance policy for your new condo.
1. You Need to Buy Homeowner's Insurance
Buying a condo might not be the same as buying a single-family house, but it is still a home structure. As a result, you still need to buy homeowner's insurance. The homeowner's policy you buy is not the same type as a single-family home insurance policy, but you cannot buy a condo without buying it. It is necessary if you have a loan on the condo, and you should consider having insurance even if you pay cash for the house. Home insurance is the only thing protecting your house and the things you have inside.
2. The Condo Has a Homeowner's Association that Buys Insurance
Condos typically have a homeowner's association (HOA) managing them. The HOA provides maintenance to the homes and other things. It also provides home insurance that covers some things. The policy that the HOA has does not cover everything, though. You will need to ask the HOA what type of master policy they have on the units.
Some master policies cover all the exterior parts of the homes and some of the interior parts. Others cover only the exterior parts. The coverage the HOA provides protects some parts of the condo you buy, but it does not cover the entire thing.
3. The Policy Depends on the HOA's Policy
After finding out the type of policy the HOA has, you can contact an insurance company for a quote. They will ask you about the HOA's policy, so make sure you know when you call. Once the agent knows the type of policy the HOA has, they will know what type to offer you. Your policy should include coverage for everything the HOA's policy does not protect, including your personal belongings.
When you buy a condo, you must find out the type of insurance the HOA has on the properties. Once you know this, you can contact an insurance agent to ask for a quote for coverage.
