Condo Tip

July 1, 2009
Matt Isleib

 

There are always tips that I can give to anybody buying a condo whether it is for the first time or not. I have written a handful of tips for LoanClassroom before on condominiums and there is one important one that you should listen to.

When you are buying a condo make sure you look at the master insurance policy. This is the insurance policy that is going to insure your condo against fire and any external damage etc. It is similar to insurance that you would get if you bought a home but a little different. The one mistake that people make is thinking that the master policy covers and insures them. It does insure you but more often than not it is not to the extent that you would think.

In most cases you will need to get a “contents coverage” policy. This will insure your belongings inside the walls of your condo. The master policy typically only covers exterior damage and anything destroyed inside is a loss without contents coverage. So the bottom line here is make sure you understand what is covered under your master policy and then speak with an insurance agent and discuss purchasing content insurance for yourself.