While it should be obvious, purchasing a condo is not the same thing as purchasing a house. There is typically no basement or backyard with condos, and the new owners don’t have to worry for shoveling snow or cutting the grass. The Condo Insurance in Boston that is purchased is also different from home insurance. In most cases, condo owners are only expected to insure a portion of the property. However, the rules differ from complex to complex, so asking questions is essential.
What does the master policy say?
Owning a condo means that one unit is owned out of a large complex. Typically, a person owns their unit outright while sharing ownership of the remainder of the complex with other condo owners. From the insurance standpoint, this means all unit owners have to collectively pay for insurance to cover common areas. The condo association usually collects monthly dues to cover this expense.
The owner is still responsible for purchasing Condo Insurance in Boston for everything inside the walls of their units. The master policy for the condo unit will spell out what parts of the complex are being insured by the association and what parts are not covered.
What amount of coverage is appropriate?
Once it is clear what parts of the condo the owner must insure, they have to decide on an amount of coverage. One way to estimate this cost is by determining what half the market value is for the interior items. For example, if there were a fire, how much would it cost to replace the walls, cabinetry, flooring and personal belongings? While this is not an exact quote, it will provide the owner with an idea of how much Condo Insurance in Boston they need to purchase to protect themselves.
Sawyer Insurance Agency Inc. offers additional tips and helps for condo owners who need to purchase insurance. They can also click here to learn more. Take some time to become educated on condo insurance, what the owner is responsible for, and why it is necessary to pay dues to fully understand the way condo insurance works and what it offers.
