If you’re looking for condo insurance in the Tar Heel state, there are a few things that you should know.
The North Carolina coastline is beautiful. It offers a unique way of living that differs from the rest of the state.
However, it’s also a high-risk area. On the North Carolina coast, homes are more likely to face storm-related damage. This damage might include wind, hail, or flooding. Accordingly, you need the right insurance.
To learn more about finding insurance for your North Carolina condo, keep reading.
What Is Condo Insurance?
Whether you invest in condos in North Carolina or call a condo your home, you may likely need supplemental insurance. Condo insurance is an additional policy that goes beyond your homeowner’s association coverage (HOA). For example, HOA insurance will not repair the inside of your home after a disaster.
It also will not cover damaged or stolen personal items. Furthermore, your homeowner’s association insurance will not cover you if someone gets hurt in your home.
You may also hear condo insurance called HO-6 insurance. An HO-6 policy covers both condos and co-ops.
The ownership structure of condos and co-ops are different. However, the insurance policies for protecting these two kinds of communities are similar.
You may wonder if condo insurance is mandatory. Well, that depends.
The law doesn’t require you to have homeowner’s insurance like it does for your car. However, you may need insurance for the length of a home loan.
Usually, a lender will require you to purchase condo insurance to protect their interests. If so, you’ll typically have to maintain that insurance for the entire time you have the loan with the lender.
Even if you’ve paid off your home, however, you may still need insurance. Some HOAs require it.
Nevertheless, condo insurance is a good investment. No homeowner thinks that their home will get damaged during an unforeseen event—until it happens.
The Right Insurance for North Carolina Condos
North Carolina beach condos are beautiful. However, residents in the area still have to think about the practical issues of homeownership.
For example, storms don’t always land directly on the North Carolina coastline. Still, they leave thousands of insurance claims in their wake.
If you live on the coast, it’s especially important to understand the nature of the coastal environment. After a serious hurricane, insurers might field close to a quarter-million claims, even if a hurricane doesn’t touchdown or come on land.
For this reason, you need more than a standard policy if you have a coastal condo in North Carolina. In both the Carolinas, for instance, insurers often include hail coverage as part of a standard policy for inland homes.
However, this kind of coverage isn’t automatic for coastal homes. For this reason, you may have gaps in your coverage. Unfortunately, many people only find out that they aren’t covered for certain events when they file a claim.
Furthermore, flood insurance isn’t included as standard protection for any home in the United States. However, it’s important to have this kind of coverage if you reside close to the water.
You can protect yourself by purchasing a separate rider to cover your North Carolina condo for events such as wind and hail damage. This kind of coverage is an additional policy that you pay for separately.
What Does Condo Insurance Cover?
If you own a stylish North Carolina oceanfront condo, it’s important to protect your investment. Condo insurance covers accidental, sudden losses.
However, it doesn’t protect you from damage that occurs over time. This kind of damage is usually considered a maintenance issue.
For example, condo insurance will cover you for water damage if a pipe bursts. However, it usually won’t cover your home for mold buildup due to a leak that you failed to fix.
In some instances, water damage may occur because of a problem in your unit. In this case, you’d use your private condo insurance.
In other cases, a problem may exist with the roof or another part of the building. A roof is considered communal property. For this reason, your HOA insurance should cover damage to your home if there’s a problem with the roof.
Typically, insurance doesn’t cover damage from floods or a backed-up sewer. Resultantly, if you want this kind of coverage, you’ll need to have it added to your policy.
In some cases, someone else may cause damage to your condo. For example, imagine that a neighbor’s pipe bursts or they have a fire in their kitchen.
If this were to happen, the damage could spread to your condo. However, it can prove tricky figuring out who’s responsible for paying for the damage.
If the other resident has condo insurance, their insurance might pay for the damages. However, you may still need to file a claim.
In many instances, your insurance company will cover the repair costs. They’ll then seek reimbursement from the other person’s insurance company.
What if I Rent My Condo?
If you rent your North Carolina beachfront condo, you can still purchase coverage for your belongings. You can also protect yourself from liability for damage. Also, you can purchase a policy to cover living expenses if your home becomes severely damaged.
Renters insurance will protect your property in the rental unit. It will also protect you from liability claims.
For instance, if someone gets hurt on your property, your renter’s insurance may cover it. However, if that person became injured because of a structural problem, the owner’s policy will typically cover that person’s costs.
Finding an Agency That Looks Out for Your Interests
For oceanfront condos in North Carolina and homes throughout the state, it’s important to choose the right North Carolina condo insurance policy. However, it’s just as important to choose the right agent. A great agent will help you find the right protection for your needs.
The best way to judge an insurer is how well they handle claims. Typically, insurance companies that handle claims well have many satisfied clients. A good insurance agent can help you find top-quality coverage in your area.
Amistad Insurance Services is an honest, dependable, North Carolina insurer. Contact one of our friendly representatives today at (919) 926-7166 or connect with us online for a free quote on the perfect policy.