The Differences Between Single Family Owned, Condo, And Co-op Insurance
Just because you're not investing in a house does not exempt you from a need for insurance. In fact, if anything you are going to want to protect your assets just as much regardless of where you reside. Tragedies like fires or burglary could still strike. Water damage and other incidents may be concerns as well.
With properties like condominiums and cooperatives, the condo or homeowner's association will likely have policies for common ground. However, you will still need your individual co-op or condo insurance for covering any losses within the property of your actual apartment.
You must also be wary that with these types of residencies you will need to familiarize yourself with paperwork known as HO-6. It's just a standardized homeowner's policy specifically for condos. They will only cover the outside structure for the building and common spaces--hallways and such. This leaves all personal items and investments left uninsured. It is also why you must actively find insurance for them yourself.
Make sure that when you select a policy that on top of the coverage for structural damage (which the building association will cover to an extent) that addendums can be made for investments and personal property. The things you are most likely to lose are electronics, artwork, jewelry, and other small items. Some property insurance can even be purchased to protect clothes or furniture. If you have any expensive pieces this might be a consideration for you.
Alongside property coverage you will absolutely need liability coverage. If anybody gets hurt while on your property, regardless of the risk that caused the injury was due to something of yours or an issue with the general building. As long as it happens within the constraints of your ownership, you are solely responsible should a lawsuit arise. You must be responsible for having the building association fix and maintain your property, and in some cases will have to hire repairs yourself if it's not structural. With medical payments can get very pricey--from patient transport, to hospital bills, to tests and scans, per you will be much happier knowing you will be insured for it. Most plans can cover between $1,000 and $5,000 per person.
Feel free to find a firm or service to get you the best quotes on renter's insurance so that you are paying a fair price for these kinds of policies. Sometimes you can save money by opening up other policies with the same company. Take your time selecting the best possible policies for you.
by: Mark Etinger