InsuranceAgents.com Answers Condo Insurance FAQs

As millions of Americans are tightening the budget belt during these challenging times, InsuranceAgents.com urges consumers to maintain their condo insurance coverage. Too many people are dropping insurance coverages, and that presents a very grave problem: People who haven't saved a substantial fund in case of an emergency and do not have protection from insurance could find their property partially or completely destroyed; liable for bodily injury to others; robbed or vandalized. In any one of these cases, the owner can find him- or herself presented with a bill of up to thousands or even millions of dollars.

According to a recent article on Insuranceagents.com, condo owners are particularly at risk. Because condo insurance isn't required by law (like car insurance, for example), some condominium owners are under the misapprehension that the insurance is simply not needed.

"Condo insurance is optional. But it's also the smart choice," stated the Insuranceagents.com article, 'FAQs About Condo Insurance.' "Condo insurance provides coverage if you are the victim of vandalism, theft, natural disasters (like a tornado) or if there is plumbing or fire damage in your home. It protects all of your personal belongings and will save you money in the long run if you run into misfortune."

Some may assume that the dues they pay to their condo association insurance already cover them and their property for any situation.

It doesn't, according to the article on Insuranceagents.com.

"The dues you're paying to your condo association's master policy only insure the structure of the condominium building and pays for the association's liability coverage. Only condo insurance that customized to suit you will provide you and your condo with proper coverage," according to the article.

Tightening the budget to bare necessities is perfectly fine, but it's important to include insurance-including condo insurance for condo owners-as one of those bare necessities. Dropping insurance coverage only saves in the short term. But if anything disastrous (even a relatively small disaster) were to occur, you could find yourself in an unforeseen and disastrously expensive situation and end up spending more out-of-pocket in the long run to replace what you lost.

"You have to ask yourself, 'How much will it cost me to replace everything in my home if it were all destroyed or stolen?'" according to the Insuranceagents.com article.

staff contribution: Meha Ahmad