What it is:
Condo insurance is a very specific type of real estate insurance. Insurance for condominiums is meant specifically to cover the structure that is defined as a condominium under the law. These structures are usually attached structures that exhibit characteristics such as a certain size and architecture. The details of what constitutes a condominium and what does not is a matter of law; however, the specific details about what is covered in a particular package can definitely be changed in an agreement with an insurance company.
Who it is for:
Insurance for condominiums is meant for people who are in current possession of a condominium. It may also be necessary for a person that is renting space inside of a condominium. In many cases, holding a valid form of insurance is a necessary component of legally owning a condominium.
How it works:
Although the details of any package for condominium is worked out within the auspices of an agreement, in general, insurance for condominium packages work the same way. If there is any damage incurred to the condominium based upon an accident that may or may not be the fault of the owner, there will be a payout that will cover the damages and possibly any legal or medical costs that occur alongside the damage.
Different types of coverage in existence
There are two different types of condominium insurance packages. One of those package types is meant for people who own a condominium. There is another completely different insurance package for people who are renting a condominium. There are also different packages for people want to protect certain items inside of their condominium such as expensive art or individual possessions such as an antique piano.
The major benefit of having insurance for your condominium is the ability to keep from paying large out-of-pocket costs when something unexpected occurs. There is also a legal benefit. If holding a valid form of insurance is a legal requirement to holding a condominium ownership, keeping this insurance current will keep the owner in compliance with the law.