Condo Insurance 101: What to Know When Insuring Waterfront Condos in Key Colony

Condo Insurance 101: What to Know When Insuring Waterfront Condos in Key Colony

Insuring your waterfront condo in Key Colony Key Biscayne is far different from insuring a typical single family home. A residential homeowner is responsible  for the whole home (inside and outside) and the land it sits on while condo owners are normally responsible for insuring just a portion of their property on their own.

Before applying for condo insurance, here are some important components you need to know.

Master Policy

Part of the monthly dues you pay goes toward ensuring against physical damages on your building’s common areas - hallways, landscaping, community facilities, roof and exterior structure, etc - as well as personal liabilities claims caused by accidents in these areas. These are covered by the master policy.

There are two types of master policy: bare walls-in and all-in.

• The bare walls-in policy provides coverage from the exterior walls in. However, it  doesn't cover fixtures and installations within your condo unit.

• The all-in condo insurance policy provides a greater level of interior coverage including  installation and fixtures but may not cover upgrades and improvements made to the property.

Understanding what the HOA master policy covers is very important if you’re planning to get an insurance coverage for your unit and belongings. If your HOA master policy is a bare walls-in variety, consider getting a more comprehensive insurance coverage since everything within your unit is your sole responsibility.

Association Deductibles

Finding out how much your condo’s association deductible is and the number of owners who share that deductible is also important. In an event of an insurance claim through the master policy, all the condo owners are expected to equally share in the cost of the deductible for that claim. For example, a strong typhoon that caused damage to the condo community’s buildings and the insurance master policy has a 10,000 deductible, and the said amount will be divided among the total number of owners in the building.

HO-6 Policy

Having everything within the four walls of your Key Biscayne waterfront condo insured falls under your responsibility. An HO-6 policy benefits include coverage for damages to your interior walls, drywall, wallpaper, carpeting and even personal property. It can fill in the gaps of the master insurance policy and cover losses under master policy deductibles.

It is also advisable to have your valuable possessions such as jewelry  or art collections itemized and appraised so you can gauge how much coverage you need and if there’s a need for an additional coverage.

Having a condo insurance is vital in protecting your interests and possessions. However, it’s important to note that rules differ from complex to complex, and it's crucial to understand HOA’s master policy to make sure you’ll be fully protected but not overly insured.

Contact a trusted insurance professional in the Key Biscayne area to learn more about condominium insurance. You can also visit www.MiamiRivieraHomes.com if you’re interested to know more about the gorgeous Key Colony Key Biscayne beachfront condos.

If you or  someone you know needs help in finding the perfect Key Colony Key Biscayne oceanfront condo call me, Alicia Ale at 305-586-4160. I will help you find the one that suits you best!