Are you interested in buying a condo but have no idea how to insure it? Condos are insured differently than homes and there are multiple ways we see them show up. Today Seth Arruda of Alta Vista Insurance Agency and I will look at the top three ways we see condos insured as well as the types of insurance that clients get.
There are a number of ways that a homeowners association (HOA) will insure a condo. The most common way is to provide coverage of the exterior of the buildings and the common areas. That leaves the owner of the specific condo to insure the inside of the unit. This is called a unit owner’s policy.
Seth tells us that he has also seen situations where the HOA will only provide coverage for their common areas. This means that you will own your roof, your side, your exterior, and your interior, but you are within a smaller subdivision where there are smaller homes on zero lot lines.
The final way that an HOA can insure a condominium is by providing coverage for the common area and the structures, leaving everything behind the walls in each unit as the responsibility of the unit owner. This means that items such as plumbing lines, service lines, and electrical lines all need to be insured under your unit owner’s policy.
Each type of policy is very specific and it is very important to find out what is covered in each situation. If you own or are looking to purchase a condominium, you should try to obtain a copy of your Covenants, Conditions, & Restrictions (CC&Rs) and review the contract with your insurance agent to ensure your unit is properly protected and that you have the right coverage.
Seth is our contact when it comes to finding insurance in San Diego and has helped us for a long time. If you are looking for a great broker to help you navigate your situation, you can call Seth at (760) 724-2124.
As always if you are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.