Condo Insurance: What Owners Need to Know

Insurance Coverage CondominiumsCondo owners in Orange County have some unique insurance policy needs. What they require in the way of coverage is very different than what renters and homeowners need to look for in an insurance policy.

A condominium complex is often operated by an association, which is governed by a set of bylaws. These bylaws determine who will cover what.

They can be written in any number of ways, but in general, the association is responsible for insuring the building itself and the unit owner is responsible for his or her belongings and any upgrades made to the unit. This is often referred to as “studs-in.”

Condominium associations charge monthly fees for maintenance and other projects.  Should a unit owner have a loss and be unable to pay the fees, the insurance policy will pay them up to a limit of coverage. Like other policies, liability coverage and personal property coverage are included in the unit owner’s insurance policy.

Condo unit purchasers in Orange County should review an association’s bylaws during the buying process to know what type of coverage is expected. An insurance agent is a great asset in the insurance-buying process.

The agent can help first-time condominium-unit buyers find the best coverage to fit their needs.