One of the benefits to buying a condo is you won’t have to worry about some of the major things homeowners do. You pay your HOA dues every month and exterior maintenance and insurance is taken care of. But, what many condo owners don’t realize is the insurance the HOA carries does not cover some of the major items a they would need replaced in order to make their unit habitable after the disaster. If you think condo owners don’t need insurance – think again.
Do NOT Rely on the HOA Insurance to Cover the Interior of Your Unit
If you own or rent a condo, do NOT rely on the Homeowners Association’s insurance policy to cover damages in the event of a catastrophic loss from fire, flood, earthquake or other natural hazards. The HOA’s insurance policy does not insure your personal belongings. In fact, if you own a condo, you are probably responsible for repairs to the interior walls, cabinets, carpets, and appliances as well and maybe more.
Get Insurance Coverage Now or Pay Out of Your Pocket When Disaster Strikes
Owners need the right insurance policy or the money to pay for repairs after a catastrophic loss is going to come out of your wallet. When disaster strikes, there is no reverse gear. Getting it right the first time gives you protection and peace of mind. Here is our recommendation.
Renting an Austin Condo? Get Coverage for Your Belongings
Contact an insurance broker and get a “renter’s policy” to cover your personal belongings. Renter’s coverage is relatively inexpensive. It typically covers your furniture, furnishings, jewelry, computers, artwork, clothes and personal effects. In our opinion, the nominal insurance premium cost is a great bargain when compared to your potential dollar loss.
Own an Austin Condo? Pay Attention to the HOA’s Master Policy
Contact your HOA and find out exactly what is covered and not covered in the HOA Master Policy. In most instances, the Master Insurance Policy will not cover anything from the middle of the walls inward. That means the walls in your condominium and all of the finishes, including but not limited to the cabinets, flooring, light fixtures, appliances, air conditioning, furnace, water heater, plumbing, electrical system and your personal property (e.g. clothes, tv, stereo, computer, jewelry, etc.) will NOT be covered unless you purchase additional coverage for both the unit damage and personal belongings. It is relatively inexpensive and it is well worth the cost. Just ask the people who were not insured.
For Insurance Advice, Speak to your Insurance Agent
Eleven Oaks Realty does not sell insurance, nor do I play an insurance salesman on TV. This post is not intended to be insurance advice. Please speak to your insurance agent directly to inquire about the type of coverage you would need.
Considering Buying a Condo in Austin?
Buying a condo is considerably more difficult than buying a single family home. You want to make sure you hire a buyer’s agent who is knowledgeable on the condo buying process. Our team of buyer’s agents at Eleven Oaks Realty have a combined 58+ years of experience representing condo buyers and offer free condo buyer representation. We take a consultative approach, not a sales approach, so instead of hard selling you the most expensive condo you look at, we’ll help you avoid expensive mistakes. For more info about our team and how we work, check out our Austin Condo Buyers page. Then, fill out our Buyer Survey, email us at info@11OaksRealty.com or call us at (512) 827-8323 to schedule a no obligation consultation.