With the verticalization process of large urban centers, condo insurance began to appear more on the national scene. It is a different product from Home Insurance and has other protection purposes. Generally, their hiring takes place in two types of constructions: in buildings or in condo of houses. But, after all, how does condo insurance work and what is it for? This is what we will talk about throughout the text.
Its coverage, for example, is not as broad and comprehensive as Home Insurance coverage . For those who are a trustee, for example, it is important to know in more depth. Does condo insurance have civil liability coverage or not? Is the facade the responsibility of the owner or the condominium? We will talk a little about these points in this content.
What is condo insurance?
First, and most importantly, is what condominium insurance protects: the common areas of the development. In buildings, for example, condo insurance coverage covers the entire building, in addition to the structural parts of the apartments and common areas.
Now, when we talk about condominiums of houses, this type of insurance offers coverage for all common areas of the land, such as corridors, gardens, garage and the like – everything that is shared.
Another important information about condominium insurance is that it is mandatory, at least with basic coverage. Thus, all buildings and residential condominiums need to have this protection.
What does condo insurance cover?
Property insurance coverage, as it is also known, covers fire, lightning, aircraft and explosion of any nature. Remembering that these are the basic toppings, which are also mandatory.
However, with the growth of this product and the high demand in condominiums, insurers are improving products and including more options. Some additional coverages to include in condo insurance are: electrical damage, total or partial collapse, gale and hail, leaking tanks and pipes, vehicle impact and theft of condo property.
It is worth emphasizing that all these coverages are aimed at the condominium itself and not at the houses or apartments of a condominium specifically.
In order for there to be an assertive contracting of condominium insurance, the síndico must carry out a thorough analysis to evaluate the real need for each coverage according to the reality of the condominium.
Who should bear the costs of condo insurance?
This insurance is considered an ordinary, mandatory expense, that is, it is the responsibility of the condominium itself, which must bear the costs of this contract, at least with regard to basic coverage.
If it were an extraordinary cost, as is the case of adjustments to the facade, improvement in the condominium or the like, the cost should be borne by the owners.
Difference between condo insurance and home insurance
With these points shown above, you must be wondering: what is the difference between home insurance and condo insurance? They are many, in fact. We can mention, to begin with, what is protected by insurance.
Residential insurance, for example, exclusively protects your residence and what is in it, depending on the coverage you hire. Property insurance, on the other hand, protects the common areas of the condominium, not each residence itself.
The second point to be addressed about the difference between the two products is the responsibility for contracting. Residential insurance must be contracted by the resident and/or owner of the property, after all, protection will be focused there. The purchase of condominium insurance is an obligation of the trustee or administrator of the building, as it is an ordinary expense, as we said above.
Finally, we can mention the obligation to contract between the two insurances. Residential, for example, is not mandatory — despite being highly recommended —, except in cases where the landlord requests it in a rental agreement. Property insurance is mandatory and without it the condominium will only be released after proof with a policy.
How does civil liability coverage in condo insurance work?
This is coverage that can be included in condo insurance. There are a few scenarios in which it can be triggered. For example, imagine the following situation: a visitor enters the garage of the building and the gate, due to some technical problem, closes on the hood of the car and causes damage.
This civil liability insurance linked to the condominium will serve to reimburse the damages caused. In addition, incidents that occur in the common areas of the building can also be reimbursed for civil liability.
In the case of contracting civil liability insurance for the trustee, the condominium is protected if there are damages caused by it in the exercise of its functions and will receive reimbursement.
As mentioned above, condominium insurance should not exclude the purchase of residential insurance.