As residential real estate prices are rising throughout the control, purchasing a unit in a condominium building can be a fantastic investment for homebuyers. Condos in desirable areas that have good management can retain their value or increase in value substantially. It is imperative that unit owners safeguard their investment by procuring comprehensive property insurance.
In a condo building, the association is responsible for repairing physical damage to common areas. Unit owners are largely responsible for the cost of dealing with issues in their own units. Having insurance may equip them to address property damage from events such as extreme weather or a kitchen fire.
Condo living can involve a considerable amount of risk exposure. If a problem in a condo owner’s unit results in damage to another owner’s unit, financial liability could be very costly. For example, if a laundry machine flood damages the unit below, the responsible unit owner may have to pay thousands to repair damage to the unit or personal property. Insurance for condos can help unit owners avoid serious personal financial liability to another property owner or the condo association.
Condo owners should take steps to ensure that their coverage addresses their full risk exposure. A homeowners policy for a condo should be affordable, but it must also provide sufficient coverage to address potential claims.