Do you need condo insurance? Yes.
People who own a condominium often, incorrectly refer to their insurance needs as "contents only". The word "contents" in the insurance world refers to your personal belongings such as; furniture, clothing, TV, etc. While we certainly want to make sure we cover your contents, what is probably more important is to properly insure your interior dwelling. Insuring your interior dwelling, often referred to as "additions and alterations" is vital to properly protecting yourself and your investment.
A common argument I get from a client is that the association has a master policy to cover the building and condo insurance is not needed. This is far from the truth! While the master policy for the association is important, you need to remember that the master policy stops at your front door. It is your responsibility as the owner of a condo to replace the interior of your own unit. An example I often use with my clients to illustrate this point is this -- Imagine your building was destroyed in a hurricane. Your association's master policy would build a a brand new shell. However, when you open the door to your new unit, you will step into a big, empty cement room. It is your responsibility to build out the interior, hence the need for condo insurance and not just contents insurance.
Of course there are details to consider and limits of insurance to ponder, but we will save that for another blog.
If you live in a condo and have a "contents only" policy, call me now. If you have a condo policy with adequate limits of dwelling and contents coverage, then buy your insurance agent a cup of coffee. If your agent doesn't like coffee, call an agent at Galt Insurance Group today. We love coffee!
