We know what you might be thinking: "Do I really need insurance for my condo?" Technically condo insurance is not a legal requirement in Colorado. However, a policy for your condo can offer you numerous benefits.
Why You Should Purchase Condo Insurance In Denver, CO
Another insurance policy may seem like a waste of money, but a condo insurance policy could be the best investment you ever make. Let's dive into the reasons why your new piece of property deserves its own policy.
Cover What Your Master Policy Won't
Some condo owners will forego insurance because they believe the master insurance policy held by their Condo Association will provide enough coverage. However, this is rarely ever the case.
A typical Condo Association's insurance policy will only cover the structure of the building and common areas, and it may not extend to the inside of your unit (Allstate). That master policy will likely include at least two types of protection:
- Liability protection - To help cover legal and medical costs if the association is hit with a lawsuit (e.g., someone is injured in a common area of the association).
- Property coverage - To help provide protection against covered perils for common areas of the building that you share with all other residents (e.g., the roof, elevator, courtyards, etc.).
Each policy will be a little different depending on the association. A few master policies may extend coverage to the interior of your home, but don't expect that from every Condo Association. In some cases, a given master policy may help protect the bare walls, floors, and ceilings of your condo, but nothing more.
That means, if your condo is subject to unexpected damage, like an electrical fire or water damage, your Condo Association's master policy won't cover it.
Don't get stuck footing the repair and restoration costs for your condo! Fill in the gaps of your master policy coverage to ensure that your home is covered for all kinds of disasters.
You'll Have Housing In The Event Of A Disaster
For a moment, let's assume that a disastrous event has happened at your condo complex. Perhaps your building has burned down due to faulty wiring or your individual unit has become uninhabitable overnight. When this happens, you'll need to pay for a place to stay until your condo is reconstructed. Which begs the question: "Will you be able to afford to stay in a hotel until your condo is rebuilt?"
This is where "loss of use" coverage comes into play in your condo coverage. Also called additional living expenses (ALE) insurance, loss of use coverage will help cover your housing and living expenses while you are temporarily displaced from your condo. Such coverage usually amounts to anywhere between 10% to 20% of the insurance that covers your dwelling (Investopedia).
Of course, your loss of use coverage will only work if you're forced to vacate the premises for a covered claim. Still, that financial support can be invaluable when you're rebuilding your life following a catastrophic event.
Take Advantage Of Loss Assessment Coverage
While it doesn't always play out this way, sometimes an HOA/Condo Association will surpass the limits of their master policy. When that happens, each unit owner might need to contribute funds to make up the difference. That surprise out-of-pocket expense can be avoided or reduce when you have loss assessment coverage.
This coverage for your condo will essentially cover (partially or completely) those additional costs associated with your HOA master policy. That loss assessment coverage can even be applied to the deductible on your master policy too!
For example, let's assume that a covered incident, like a fire, originates in your unit. This damage spreads to the building's lobby or a shared hallway, and your master policy has a $10,000 deductible. Your association might hold you responsible for a part of or the whole deductible rather than asking all the building's owners to chip in. With loss assessment coverage, you might be financially protected in this type of scenario.
Request Your Quote For Condo Insurance In Denver, CO Today
You can't predict the future, but condo insurance in Denver can help protect you from future disasters. If you're starting to compare coverage options for your condo, there's no better place to start your search than Adler Insurance Group.
We'll create a customized policy to help keep your personal property protected and to protect your own personal liability. Our agents will advocate on your behalf throughout the claims process and we'll help you stay prepared for virtually every possibility with additional coverage options.
Contact Adler Insurance Group today to get your FREE insurance quote on condo insurance in Denver, CO.