Condo Owners Insurance: Minimizing the Payments

Similar to homeowners insurance, people purchase condo owners insurance to protect their property. Condo Association Insurance covers exterior building structures and common areas such as a pool or picnic area. In order to protect what’s inside your condo, including personal property, you must purchase personal condo owners insurance as well.

What Personal Condo Insurance Covers

As with all types of insurance, the amount of coverage you receive depends on how much you are willing to spend. There are many coverage options to consider; speak to your insurance agent to determine which policy is best for you. Condo owners insurance coverage could include the following:

  • Liability Protection – This package covers any damage or bodily injury caused by a covered loss (e.g. you accidentally break your neighbor’s window).
  • Personal Property Protection – This package covers personal items, such as furniture, clothing, and electronics.
  • Guest Medical Protection – This package covers bodily injury sustained by a guest on your property in the event of a covered loss.
How Can I Save?

The amount of your condo owners insurance premium depends on how robust your coverage is. The more coverage you have, the more expensive your insurance will be. There are ways to minimize payments, however.
  • Raise Your Deductible – Raising your deductible automatically means a lower premium. A deductible is what the condo owner must pay for a claim before his or her insurance pays their share. For example, if your deductible is $300 and you submit a claim that is $1,500, you will have to pay $300 out-of-pocket before your insurance pays the remaining $1,200. Raising your deductible just a few hundred dollars can save hundreds, even thousands, in the long run. Before going this route, just be sure you have enough money available if you ever need to submit a claim.
  • Ask About Discounts – Before settling on an insurer, find out if you qualify for any discounts. You can save money by asking about senior citizen discounts, group rates, discounts for paying your premium electronically, or discounts if you insure a car or another home with the company.
  • Avoid Fire Hazards – Each year, thousands of homes are damaged or destroyed by fires. Most insurers offer lowered premiums to those who have fire alarms and/or sprinklers in their condo.
  • Improve Security – Similarly, if your condo has a home security system and/or burglar alarms, you could save up to 15% on your annual premium.
Do Your Research and Choose Wisely

Before deciding on your insurer, shop around to compare companies, rates, and terms. You can do this online or with a quick phone call. Do not simply consider premium rates; you should also pay close attention to the company’s reputation, customer service, claim history, and customer reviews. If you’re unsure whether the company you’re considering is legit, simply check with the Better Business Bureau. Finding a trustworthy condo owners insurance company can minimize payments and stress.

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