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Interior Insurance Is Often Required

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Today, more and more mortgage lenders are requiring interior insurance when you purchase a condo or town home. In fact, interior (or condo) insurance is readily available, and it’s a good idea to purchase it whether your lender requires it or not. Condo insurance covers everything inside your unit, from your possessions to the drywall, cabinets, furnishings, and other materials. Your condo association also carries insurance, but in most cases that only covers the exterior of the buildings and the common grounds, not the inside of each unit.

What Does Condo Insurance Cost?

Typically, condo insurance costs much less than a traditional homeowner’s policy, because you’re only insuring the interior of the building and your belongings. You want to make sure you have enough coverage to cover any losses that might occur. You should check with your insurance agent to find out what similar condos in your building are insured for, and you should let he or she know if you do any upgrades that increase the value of your unit. You should also have an accurate estimate of your belongings and what it would cost to replace them when you’re ready to buy insurance, too.

What Does Interior Insurance Cover?

Interior insurance covers what most traditional policies cover, including damage from fire, smoke, lightening, wind, and theft or vandalism. Your living costs are also covered if you have to move out until repairs are completed, as well. Medical liability covers accidents that might occur to someone else in your home, and that liability covers court expenses in the case of a lawsuit over an accident. However, there are some things that condo insurance doesn’t cover, too. Most policies don’t cover earthquake or flood damage, so if you live in an area that’s prone to these disasters, you’ll need extra insurance. Many limit the damages they pay on certain items, like jewelry, art, and computers, so you may need to bump up the coverage in these areas, too.

Interior insurance covers most of the disasters that could affect your home, but you should always check with your insurance agent to find out any limitations your policy could have.

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