Have you ever asked yourself: "Why do I need an individual Condo insurance policy NJ if I already have coverage?" If the answer is yes, you should seriously research what your master insurance policy covers. When you finance a condo, the lender will accept proof of a condo association policy as proof of insurance coverage. While the master association policy does cover the actual structure of your building, it does not provide coverage for your individual unit. Below are just a few of the coverage options that an individual condo policy will provide for you.
Building Coverage
A condo association policy provides coverage for permanent common areas. This means that if a fire were to break out, the association policy would pay to rebuild or repair the foundation of the building as well as structural elements. This is where coverage stops. If you expect your master policy to provide coverage for the inside of your condo, you are sure to be disappointed. This is why you must purchase a condo insurance policy on your own. Your individual policy will pay to rebuild your condo from the walls in. This includes drywall, paint, flooring, fixtures, counter tops, and more.
Personal Liability Coverage
You face potential liability lawsuits on a daily basis. It is easy for an individual to claim you are negligent for your injuries or damage to their property. If you leave out a rake by accident and a passer-by trips on this rake, they have the right to sue you for your assets. A master policy does not provide liability coverage. When you invest in a condo insurance policy NJ, you are also purchasing liability coverage that will cover you anywhere in the world.
Personal Property Coverage
Have you ever added up how much your belongings are worth? Over time homeowners accumulate belongings that tally up to a small fortune. Your master association policy will not provide coverage for any of your belongings. When you invest in a condo policy, you can state the value of your property and cover everything against common perils. Perils include fire, wind, hail, explosion, civil riot, glass breakage, theft, vandalism, and more. When you do not have your own property insurance you will end up having to replace your own valuable belongings on your own if a catastrophic loss occurs.
Just because your lender does not require individual condo insurance does not mean the coverage is not important. If you are a wise property owner, you will take time out of your busy schedule to find the best condo insurance policy NJ. Start calculating how much it will cost to rebuild your unit and how much your property is worth and build the perfect policy for peace of mind.
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