Owning a condo is a dream for many people. While a condo provides you with the same long-term benefits of owning a home, you also do not have to deal with the same maintenance responsibilities. If you own a condo, you will want to make sure it is adequately covered by insurance. There are several situations in which having condo insurance will be a necessity for you.
Mortgage Outstanding
Depending on your situation, you may need to take out a mortgage to purchase the condo. Since the condo will be the primary form of collateral for the lender, the bank will undoubtedly require that you have a condo insurance policy in place at all times. In many cases, the lender will require that you have your monthly condo insurance payments escrowed to ensure there is never a lapse in coverage.
Association Rules
When you live in a condo, you likely will have a variety of association rules that you need to abide by. Some of the most common association rules revolve around insurance requirements. The association will want to make sure that you have coverage that not only protects your property, but also protects all other owners in the building. Your condo policy will provide you with coverage in the event a fire or leak starts in your building that causes more damage.
If you own a condo in the Salt Lake City, UT area and want to know more about your condo insurance requirements, contacting the M8 Insurance company would be a great option. Our team at M8 Insurance will be able to review your current condo policies and situation to figure out what your insurance needs are. We will then be able to find you a great policy to ensure your Salt Lake City, UT condo is properly covered.
