If you are living in a condominium, you can probably rely on your condo or house owners to safeguard the building and the common corridors. However, it will not assist you if there is any damage to your personal belonging. For those and other likely threats, you’ll need condo insurance, also known as HO-6 protection.
Here in this post, we have mentioned everything in detail about Condo Insurance NJ.
What is Condo Insurance?
The Condo insurance covers what your HOA won’t. It covers fixing the inside of your unit after damage, replacing damaged or stolen belongings. This insurance also covers the cost if visitors are harmed there.
Condo insurance NJ is used for both condos and co-ops. Although the insurance structure for both differs but the protection claim is similar.
Is Condo Insurance important?
Just like homeowners insurance, many mortgage lenders recommend you purchase condo insurance to protect their financial interest during your loan period. However, even if you have paid off your mortgage loan or purchased the property, you still need condo insurance because many HOAs ask for it.
What does Condo Insurance in NJ cover?
According to the condominium association and the state laws, Condo Insurance NJ covers the following.
Most of the time, the policy covers only the exterior walls, this means that you are responsible for the damages caused to the interior walls and for fixtures, and your personal property and liability.
This is where there is a need personal condo policy. The Condo insurance NJ cover the losses arising from-
- Personal Liability Coverage
If someone is injured while visiting your condo and it is your fault, this insurance coverage will help you pay off the legal expenses and your guest’s medical bills.
- Guest Medical Coverage
If your guest is injured at your home, then the guest medical coverage in the condo insurance helps you pay for the medical expenses even if you are not at fault.
- Building Coverage Protection
This coverage helps to pay for the repairs to the walls of your unit and its interiors including bookshelves and fixtures.
- Personal Property Coverage
Belonging such as electronics, appliances, furniture, and clothing are included in the personal property coverage. If these belongings are stolen or damaged, this personal property coverage helps pay to repair or replace them.
There are different types of personal property coverage that determines how much your policy with repay you after the covered loss.
- Actual cash value, typically pays you for the depreciated value of the damaged belongings.
- Replacement cost coverage repays you for the difference between the actual cash value and what you paid for the repair or replacement.
You need to know that each coverage in the Condo insurance NJ comes with a limit, which is the maximum amount you can be reimbursed for a covered claim.
Which scenarios are not covered in Condo Insurance Policy?
Here in this section, we have mentioned some common problems that are not included under the Condo insurance policy.
- Intentional injuries to others
- Nuclear hazards
- Wear and tear
- Damage done by birds, rodents, and other insects
- Damage caused from underground water.
Condo Insurance policy is purchased by the owner of the condo unit and generally helps you pay off for the repair of your unit and belongings. Here we discussed condo insurance NJ in detail, importance of condo insurance, what does the condo insurance cover and not cover.