Understanding the different types of coverage that can come with a discount condo insurance policy is important if you want to make sure that you would be able to purchase the type and amount of coverage you need without paying extra. Here are the different types of condo insurance coverage explained. Property Insurance: This would usually be able to cover the loss and damage to your property caused by a fire, a burglary or a break-in and natural disasters, such as the damage caused by a tree falling on to your building during a big storm. “Named peril” insurance policies would provide coverage for specific risks, while “all-risk” insurance policies would provide coverage for all risks, except for those that are specifically excluded, such as floods and earthquakes. General Liability and Umbrella Coverage: This type of insurance should be purchased to get coverage for damage and injury claims. They usually need to be purchased by both the management of the condo and the individual unit owner. This is so that in case an individual gets injured inside your condo unit or in a shared area of the complex, you would be able to be covered for any resulting medical or legal expenses. As for umbrella policies, they should be able to provide additional coverage in case the general liability insurance coverage is not enough.
Equipment Breakdown Coverage: Also referred to as boiler insurance, equipment breakdown insurance offers coverage for damages to elevators and water heaters, including other damages that these equipment breakdowns cause. Directors’ and Officers’ Liability Coverage: Although this type of coverage is rarely required, getting it can cover the claims against the board members of the condo association or wrongful decisions that they make in behalf of the condo association. Fidelity Insurance: This type of insurance covers employee forgery, fraud and theft and is particularly important for condo associations which have hired separate management companies. Through knowing the differences among the various types of condo insurance coverage, it should be a lot easier for you to determine which would best suit your needs. Be sure that if you are in the market for a condo insurance policy, you would be doing a lot of shopping around and comparing to end up making the best decision.
