Chicago ranks third in the nation in terms of condos that are expected to be completed this year, with 8,533 more units to hit the market. A condominium or condo for short is a legal term describing a type of joint ownership of real property in which portions of the property are commonly owned and other portions are individually owned. The condominium consists of units in a multi-unit dwelling where each unit is individually owned and the common areas like hallways and recreational facilities are jointly owned by all the unit owners in the building. Condo insurance protects the owner from expenses that may be incurred because of this joint-ownership aspect, as well as other common things related to home ownership.
Condo insurance in Chicago is different than any other type of insurance, because you have both common and individual insurance needs. The condo association is responsible for insuring the exterior, while you have to cover your personal property and liability damage.
The responsibilities of your condo association are described in the master insurance policy. Usually covered are the outside of the building's structure, including the roof and common areas such as pools and sidewalks. The master policy does not insure the inside of your unit or any of your personal belongings. And this is exactly why you need condo insurance in Chicago.
Chicago condo insurance covers your personal belongings, personal liability, additions, alterations, wall fixtures, floor and ceiling of your unit. Have in mind that all condo insurance policies are not alike, so you must have a good understanding of the matter.
Condo insurance provides two types of coverage-actual cash value and replacement cost. With the replacement cost coverage the contents of your condo are covered up to the amount that it would cost to replace your belongings with items of like kind and quality. Of course, this type is more expensive. With the actual cash value coverage, your house or property is covered for the depreciated amount, based on the actual value at the time of loss.
The important thing is to make the right choice between thee two types of coverage. The idea is to hit the correct balance because don't want to be under-insured, but at the same time you don't want to pay for insurance you don't need. Consult with an insurance company, ask them for assistance with determining how much condo insurance you need. Check what parts of the interior are covered by your condo association's insurance and what items are your responsibility. Liability coverage is always needed, because the master policy does not provide any liability coverage for your unit or your personal exposures.
The purpose of condo insurance is to cover the gap between your condo association's master policy (which insures property owned by all unit owners) and your property and personal liability protection.
A condo insurance policy can include:
-Personal property coverage-furniture and personal possessions
-Optional property coverage-such as special coverage for important items
-Personal liability protection-in case you are sued for accidentally causing other people distress or damaging their property
-Additional living expenses-covering the expense if you have to move out of your condo while it is being repaired.
-Additions and Alterations-for changes you have made to the condo
-Loss assessment coverage-if commonly owned property is damaged
-Deductibles-applies to property losses only.
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