Condos have become one of the most common options among home buyers in New Jersey and across the states. Compared to a single-family house, a condominium has various benefits.
First, a condo is a great option, regardless of whether you are starting a family or escaping loneliness. When you own a condominium in New Jersey, you will most likely worry more about the dangers of wild weather than anyone in the other states.
But the good news is that New Jersey always has affordable condo insurance that will help cover the little maintenance.
What is Condo Insurance in New Jersey?
You need to know that your condo is more than just a roof over your head; it is also your home. Therefore, ensure that you understand the fundamentals of condo insurance.
When you have a condominium, you will need condo insurance even when you have condo association coverage. Condo insurance protects your condo’s interior and personal belongings whenever they are stolen or damaged.
What Does Condo Insurance Cover?
Because every condominium master policy can be written differently, insurance companies can always evaluate the section to decide if the Association owners are responsible.
Condo association coverage can protect some items in your condo; however, it is a good idea to have a personal condo insurance policy to protect the property damage and personal liability risks of your condo. Condo insurance in New Jersey covers:
Personal Liability
Condo insurance liability coverage protects you whenever someone is unintentionally hurt in your condominium and decides to take legal action.
To protect yourself from lawsuits and hospital bills that might add up quickly, ensure that you have mitigated personal liability just for the worst-case situation.
Loss Assessment
This coverage repays you for the part of an accident or damage to building common areas. This is usually charged to all condo owners.
In other words, loss assessment coverage protects you during situations when you are held financially answerable for a portion of the cost for deductibles or damage to the building, injury in shared areas, and the shared areas property.
Building Property
Building property coverage helps you pay for simple repairs to the walls and interior of the condo, such as the floors, cabinets, lights, inner walls, built-in appliances, and everything present when you move in.
Personal Property
This core part of your condo insurance policy protects your furniture, clothing, appliances, and electronics whenever they are damaged, stolen, or destroyed by a specific peril.
Other types of coverage include flood insurance, umbrella insurance, and endorsements.
What is Not Covered by Condo Insurance?
Some problems are not included under the typical condo insurance policy. They include;
- Floods
- Wear and tear
- Nuclear hazard
- Damage caused by birds, insects or rodents
- Intentional injuries to others
- Earthquakes
How Much Condo Insurance Should You Have?
This is the first question that you should ask yourself before obtaining condo insurance in NJ. Usually, you can estimate the amount of insurance you need by inventorying all your items.
However, some things are precious and might require extra coverage. Ensure that the items in your personal property do not surpass the “per-item limit.”
How Much Does Condo Insurance Cost?
Obtaining Condo insurance in New Jersey can be the best option to protect your investments against damages that might be caused by fire or when they are stolen.
The value of the condominium, the location, and the condo association policy determine the cost of condo insurance. Other factors that can affect the price of condo insurance include:
- The type of insurance you choose
- The available deals and discounts
- The location and constriction of your condominium
- The condo coverage you need to buy for complete protection
Remember that the area’s population can also affect condo insurance costs. If the location of your condo is densely populated, then it is more likely to get higher premiums since condominium prices are generally high.
In Montclair, New Jersey, the average monthly insurance rate is $37, while the annual average can be up to $438. These prices can seem high, but it is because New Jersey State is home to two of America’s wealthiest counties, Hunterdon and Somerset County.
The median home value in Montclair is an average home rate of $660,799.
Is Condo Insurance Mandatory?
It is a good idea to get condo insurance in New Jersey. Typically, the average lender requires that coverage be held to your condo. This means that unless you own your condo upright, it is mandatory to get condo insurance.
This doesn’t mean that you can just obtain an ordinary homeowner’s insurance policy for your condominium. There is a big difference between Homeowner’s insurance and Condominium insurance.
Also, there is a Condo Association, which is almost similar to the Homeowner’s association. The policies can be different depending on the complexity, but be sure to look at them carefully before obtaining one.
What is the Difference Between Homeowner’s Insurance and Condo Insurance?
One thing you need to know is that a condo is not a house; therefore, the insurance policies will be different. A standard homeowner’s insurance policy protects your home, connected structures, yard, personal property, and liability.
On the other hand, a condo insurance policy includes some of the same features. The main difference here is the coverage for the actual building. Condominiums usually have an association that manages some details regarding the condos on behalf of the unit owners.
Condo Insurance Coverages
Condo insurance in NJ covers all common areas shared by you and the other condo occupants. Additionally, the association is responsible for the outside of the building.
Key Takeaways
Your condo insurance cost will depend on the deductibles, applicable discounts and fees, and the coverage you choose. Remember that a lesser amount of coverage and a high deductible means lower payments, on the other hand, more coverage and low deductible means higher fees.
If you are unsure about which policy to choose, contact Schumacher Insurance Agency to speak with an agent who will ensure that you get a policy that offers the essential coverage you need.