What You Need to Know About Condominium Insuranceby Vinnie Ascoli, CIG Personal Lines Manager Spring 2006 Issue
The American Dream was once to place a 20-percent down payment on your first home, take out a traditional 30-year fixed mortgage, and live happily ever after. The average median price of home ownership in California is more than $450,000, making owning a traditional home for first-time buyers more of just that, a dream for many of us. However, future homeowners, do not despair; you may still be able to live happily ever after.
According to a recent article in The Sacramento Bee, individual-unit condominium ownership has increased significantly over the past several years, allowing many of us to find alternative ways to "own" our first piece of real estate, thus providing a way for us to transition to the American Dream of home ownership.
If you are thinking about purchasing a condominium unit in the near future, either as an investment vehicle (sublet) or as a residence, or if you are currently a condominium-unit owner, you should seriously consider purchasing Unit Owners Condominium Insurance.
Why? In addition to protecting your personal property such as furniture, appliances, clothing, and valuables from damage or destruction by covered perils such as fire, theft, water damage, etc., it also provides you with Personal Liability coverage for unintentional negligent acts by you or household members. You therefore pick up two additional key coverages with CIG's Unit Owners Condominium Coverage: Dwelling coverage and Loss Assessment (from the association).
When you purchased your condominium unit, the cherry-wood kitchen cabinets, the granite countertop, and the customized bookcases were all part of the selling price and therefore part of the unit you own. If these items are damaged or destroyed by a covered peril, it is important to realize that you may be responsible for replacing them at your own expense unless you have proper condominium coverage.
If someone gets injured in the "common areas" of the condominium complex, you can be assessed by your association for your portion of the damages even though you were not responsible for the injury. However, with CIG's Loss Assessment coverage you can be protected from such assessments by your association up to the limit of your Special Assessment coverage.
If you are interested in learning more about CIG's Unit Owners Condominium Coverage, please contact your local professional independent agent for details. We are there when you need us.