If you are a condo owner, ensuring the safety of your condo is essential. Perils such as fire, theft, or damage of your condo may expose you to substantial financial liability. A Condo insurance policy covers you against financial liability in instances where your condo is uninhabitable. If you are a resident of Colombus or Hilliard, OH, you have probably wondered whether condo insurance is mandatory. Here are two common situations where condo insurance is mandatory.
Two common situations when condo insurance is mandatory
While condo insurance has many benefits, there are a few instances where it is mandatory.
- If your condo is under a mortgage, it is the requirement of the financial institution that your condo is insured. This is to safeguard the financial institution against losses in case the condo is damaged. It is essential to let our agents at Stanley Insurance Group know about the mortgage, to make sure that all areas of concern are covered. It would be frustrating to pay for a mortgage for an already damaged property.
- Condo common areas must have an insurance policy. If your condo unit is located among other units, it is mandatory to have the common areas covered by an insurance policy. This is to make sure that any financial liability arising in this place is covered. There are fewer conflicts, as it is easier to pay for the financial claims arising from damages in these areas. This is typically handled by your Condo Association.
If you are a resident of Hilliard, OH, it is smart to be aware of your insurance options and what your association will cover.
Other benefits of the condo insurance policy
Legal Liability coverage
You are likely to receive a lawsuit from accidents happening in your condo. This could be a huge financial burden if you were unprepared for this. A condo insurance policy will cover costs associated with lawsuits affecting your condo.
Be sure to visit our office or call our Stanley Insurance Group agents to find out how to safeguard your condo best.