Homes in low-lying areas, or located near water, might have a risk of flooding in the right situations. Regardless of whether they are houses, apartments, condominiums or town houses, flooding does not discriminate. As a result, occupants might need flood insurance. Still, if you own a condo, what type of coverage is the right one for you?
A condominium is usually not a free-standing home. It might be part of an association, but you might independently own it. Factors regarding your ownership status might influence what coverage you eventually must buy.
Understanding Flood Insurance
Homeowners policies and renters policies will cover a variety of assets, liabilities and possessions within your property. However, one case where they likely will not cover you is during weather-related flooding.
Weather-related flooding is something that might arise in cases of river swells, heavy rains, flash flooding or storm surge. It might occur in any home, at any time, though some homes have much higher risks than others. If floods occur, they could cause thousands of dollars in damage to the home’s structure and the possessions within.
Still, since homeowners insurance policies won’t cover flooding, those who face flood risks might have to get flood insurance, specifically. The flood insurance marketplace is very regulated, with most policies being provided by the National Flood Insurance Program (NFIP). Policies will provide structure and contents coverage, along with certain other perks that can assist policyholders during their recovery phases.
Understanding Policies for Condominiums
Condo owners, particularly those in areas with high flood risks, can benefit from flood insurance. In some cases, mortgage lenders might even require that condo buyers have to buy coverage. Therefore, before moving into your condo, see if you need this coverage.
Sometimes, a condominium association will carry flood insurance that will apply to the individual property and possessions of the property owner. However, at times, the association’s provided coverage might not be enough coverage on a home-by-home basis. Therefore, the property owner might decide to purchase their own coverage to their own benefit.
In most cases, condominiums are still single-family dwellings, though they might share walls with other properties. Therefore, the property owners can choose their own coverage. If you wish to do so, your flood insurance policies usually offer structure insurance and possessions coverage, which can help you receive appropriate protection for your own losses. If you don’t own the condo, but rent it, you can likely still can get a renters flood policy for your possessions within the structure.