Owning a condo brings a nice break from some of the problems of owning
a home. Upkeep such as roof repair, gutters, lawn maintenance,
and water lines are taken care of by the insurance provided to the
homeowner's association, or may occasionally be assessed to all
the association members.
Doesn't a Mortgage Provide Insurance for Condominiums?
Many condo mortgages will include property taxes and perhaps a life
insurance policy that covers your death and protects your family in
case of that occurrance. But what happens to your condo if there
is a fire or flood in your own apartment?
Insurance For Adjoining Condo Units
Different HOA by-laws will have different rules set down as to
individual liability for damages due to fire, flood, or negligence
from the homeowner. Most by-laws will require that the owner of
the condo in which the problem originates will be held responsible for
adjoining unit damages as well.
In example, let's say you have a condo on the second floor, and your
hotwater heater springs a leak one day. You are at
work, or perhaps on vacation, and the water starts coming out.
Even a slow leak will start showing on the ceiling of the unit below
yours after a few hours. A big leak could conceivably
collapse their ceiling and dump a gush of water right in their
living room! If you have no condo insurance, you will not only
be faced with repairing and replacing your own property, but you can be liable for repair their unit as well.
Picture your
washing machine suddenly not stopping when the barrell fills.
By the time you find out, or someone notices, it might involve
multiple units...the common areas of the building, and cost
thousands of dollars to repair.
Then imagine one of your electronic gadgets causing a fire.
Your condo is ruined, your next door neighbor's is damaged...
the unit below or the unit above is burned or suffers smoke damage.
If you don't have condo insurance, you'd better have pockets deep
enough to take care of all these damages.
Somewhat related is the
condo or townhouse insurance for renters. Your landlord will
seldom provide insurance for your own belongings.
Both kinds of condominium insurance are relatively inexpensive and
can be a real lifesaver in times of trouble such as fire and flood.
