A Brief Guide To Condo Insurance in South Dakota
Believe it or not, condo insurance is one of the most complex home policies to purchase. Many think that a condo’s association carries insurance for the entire community without researching what exactly that entails. The “master policy” insurance coverage actually leaves a good amount of gaps for condo owners, which you may not be aware of until you are suffering the consequences yourself. Read to discover the key points of condo insurance and why it is very important to consider.
Understand the Master Policy
First things first, the master policy. This will basically let you know everything that the association is covering, and it is very important to be knowledgeable of. The ownership of all common areas is shared with other condo owners, meaning the association of owners typically purchases insurance coverage, known as a master policy, for areas such as hallways, exteriors walls, etc. The condo association’s master policy should outline what is covered and what is not.
Two types of coverage in South Dakota
There are two basic types of coverage under a master policy that your condo association could offer including:
- An “all-in” condo master policy – This type of policy will cover fixtures in your condo such as plumbing, appliances, wiring and any carpets but will not include your personal possessions .
- A “bare walls-in” master policy – This type of policy does not cover anything that is inside the walls of your condo. It may or may not cover plumbing and electrical systems.
It’s very important to review the association’s master policy to be able to determine what your separate condo insurance policy will need to cover in order to avoid unwanted consequences. After you know the scope of coverage of the master policy, you will be able to determine what type of individual coverage you may need for your condo.
How does condo insurance work?
Your condo association’s master policy will cover damages to your condo building, grounds and other external features. Therefore, your condominium policy needs to cover your personal possessions, appliances, and sometimes installed fixtures or other attached features in the condo.
In the event of burglary or a fire, you will need to file a claim to your condo insurance company and/or your association’s company. For a better picture, if your condo gets broken into and you are missing personal possessions, then you will need to file a claim with your condo insurance company. However, if your condo was broken into by breaking and entering that caused damage to external doorways or walls, the claim may need to involve both your condo insurance company and the association’s insurance company.
Why is condo insurance important?
Your condo association’s insurance will only cover any damages to the exterior of the condominium, which is why you need separate condo insurance to ensure that you will be covered in the event of stolen possessions or damage. Condo insurance will also protect you from liability claims and lawsuits in the event that someone is hurt in your condo or if you are responsible for damage to someone else’s property.
Here are a few examples of what condo insurance can cover:
- Theft
- Hurricane damage to possessions or the interior of your condo
- Appliances
How much condo insurance should I have?
The best way to determine how much condo insurance you should have is to come up with a rough estimate on how much it would cost to replace your personal belongings after the event of burglary or a fire. Consider certain valuable items you own that may need additional coverage.
How to buy condo insurance in South Dakota
There are various options when it comes to buying insurance for your condo, however, your best option will be to work with an independent insurance agent. A local independent agent that lives in your area will have the ability to compare condo insurance rates from multiple insurance carriers in order to help you choose the best policy that aligns with your needs. Furthermore, an independent insurance agent will be able to provide consultations on various options and available discounts.
Choose a Trusted Independent Insurance Agency in South Dakota
Meyer Insurance promises to protect you from life’s unexpected twists and turns. We understand how important your family, business and possessions are, and have the experience to navigate the unique risks you may face.
We have two office locations in Watertown, SD, and Webster, SD. Our agents are ready to assist you with all of your insurance needs. If you are interested in learning more about our independent insurance agency, contact us today to speak with one of our professionals. 605.753.5698
