An in-depth look at Michigan Condo Insurance

Condo insurance is one of the most misunderstood insurance policies. The reason for the confusion is understandable because condo owners are covered by two types of policies, condo association and an individual policy. The misunderstanding arises when it comes to knowing which policy covers what. This confusion can create gaps which end up costing condo owners hundreds of dollars.

For starters, most condominium owners do not know that they are responsible in the event of calamities such as windstorms, fires, floods and other disasters. These calamities can happen in the individual units or the common areas. To add onto this problem, many insurance agents do not fully understand condo owners insurance and hence do not explain it to their customers. To fully comprehend condo homeowners insurance, you need to understand the difference between master policy and unit policy.

Master Policy versus Unit Policy

A condo association policy covers the building and the common areas under one policy known as the master policy.

This insurance plan basically provides cover for the following:

  • The basic building. This includes floors, walls, elevators and roofs. Master policy does not cover unit items such as carpeting, appliances, and wall coverings. In most cases, the interior wall is also not covered.
  • Basic building unit items. These items do not include an improvement, unit additions or alterations that the condo owner may have made.

As evidenced, a master policy does not provide comprehensive coverage for your condo. An individual condo insurance coverage is, therefore, important to cover for damage to your unit items. It is advisable to review your buildings insurance document to fully understand what is covered and what is not. Ensure that you do not leave gaps that could end up being very expensive in future. Understanding the master policy also ensures that you purchase adequate Michigan condo owners insurance.

Michigan Condo Insurance Policy Coverage

Condo insurance will provide cover for:

  • Personal Property: as a condo owner, you are responsible for insuring your personal possessions. This type of insurance can offer coverage against theft, loss and damage of personal possessions.
  • Loss of use: this applies to people who have to live elsewhere in case their condo is uninhabitable due to fire. This policy will cover for hotel bills such as meals, laundry and other living expenses.
  • Personal liability- this compensates for suits brought against you for physical injuries in which you are liable. It also covers you in case you cause damage to other properties. There are certain policies that will also reimburse for defense or court costs.

There are numerous condominium insurance providers. You will receive hundreds of search results by simply typing online condo insurance quote or condo insurance quote. This can be overwhelming. The best strategy to find the right cover for you is to take advantage of sites that compare condo insurance rates. Our website offers impartial and independent quotes comparisons to help you make an informed decision. This is also the best way to make a great saving out of your condominium insurance.

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