It's always good to be covered in the event of any damages that occur to the property that you live in or to the belongings inside of the place you live. While many people with condo insurance are covered for most things, people who live in a condo play unit by slightly different rules. What's hazard insurance for a condo? Put merely, protects the interior of your condo unit and your belongings from all kinds of other risks and perils. Without a separate insurance policy for the inside of your condo, it's possible that damages could occur, and the building insurance wouldn't cover it at all. Not only is this frustrating as a resident in a condo, but it raises an issue if you don't have hazard insurance: what if something terrible happens and you can't get any help because you're not covered?
Differences Between Building & Unit Insurance
There's a clear distinction between building and unit insurance when we're talking about condo insurance. The way the law works protects this dynamic: the building owner or manager will be covered by the insurance that protects the entire property, but notably, this does not extend at all to individual units, no matter what reason or how many there are. The insurance that condo tenants need because of this is called an H0-6 policy. There are different kinds of condo insurance, and they have additional coverage for all types of things. Hazard insurance for a condo can cover liability and protect you from lawsuits from other people. It generally also protects you from theft and vandalism. It also covers 'natural perils'--things like a storm or a fire or lightning that occurs with the tenant being unable to do anything about it. This doesn't mean it covers flood insurance because, in most places, that's separate. You'll need an additional policy for that.
How to Obtain Condo Hazard Insurance
You should contact a private insurer to obtain a condo hazard insurance policy. This will cover you against the natural perils mentioned earlier, but not against floods or things like earthquakes. Separate policies are available for those if you're in an area that is at risk for those kinds of natural disasters. It's essential to examine the policy options given to you and decide what will benefit you the best. Don't have too low of a deductible: it'll make your premiums very high, and you'll end up with a large bill each month. Figure out how much coverage you need and work with your insurer to be able to obtain it.
Costs, Premiums, And More
Suppose you're interested in lowering the costs, especially the premium costs, one of the best ways to do and in that case, installing things like fire prevention items such as smoke detectors or window or door alarms for higher security. Insurance companies will give you better rates, and you could see reductions if you're proactive about your security and safety and protecting your property. The deductible is essential: it's honestly better to have a higher deductible and save to clear it than to have a low one and pay a large bill each month. Many kinds of damage are smaller, and you should pay them out of pocket. Only large-scale damages—the type that will get over a deductible no matter what, even if it's a high one—should be brought up to the insurer. Making multiple claims within a few years of each other is a bad idea, so keep that in mind as well. Obtain your hazard insurance for your condo, and feel safe that your interior and belongings are protected.