When determining what flood insurance cover in a condo is, the first thing to consider is whether your homeowners association has flood insurance for the entire condominium complex. This could come in a few different forms. They may have insurance that covers common property for your condo complex, as well as some level of coverage for the private units within it. However, it may be true that the insurance only covers that common property with little to no coverage for your condo unit specifically. Once you determine what level of coverage your HOA has, you can set about determining what benefits flood insurance may provide for your unit, specifically if you purchase it on its own. In states like Florida, where floods pose a high risk to home-owners, flood insurance can come with specific restrictions, so researching your options for coverage will be your first step.
What does my HOA cover?
Your HOA is allowed to purchase insurance for units that it owns and leases. This means that if you live in a complex where this is true, you need to look over what that coverage applies to and covers. If there is no coverage or coverage is not adequate, you can purchase insurance to add to it. You also need to check with your mortgage lender to determine if they require you to hold flood insurance for your condo specifically, separate from any coverage that your HOA has purchased. It’s also worth considering that if your HOA has purchased coverage that only covers a percentage of a unit, the HOA could assess owners for the remaining amount. This means your insurance you purchased on your own could help fill in these gaps!
What will Flood insurance cover?
Flood insurance for condo owners can be critical for states and areas that are prone to heavy flooding. FEMA offers the ability to check records of historical floods and the presence of flood plains to see if your property is at risk. If it is, and you've determined that you do need to purchase flood insurance in addition to what is already offered, then you'll need to know what it covers. It's important to note that flood insurance is necessary for even flooding caused by hurricanes in the southeast. This can come as a surprise to condo-owners that already have hurricane insurance. Should a large storm surge or amount of rain accompany a hurricane and your condo unit flood, you'll need flood insurance to cover those damages. The insurance should also cover the possessions in the condo, but check your policy's details when you are shopping around!
How much do I need?
Condo flood insurance is a particular type of coverage. The ultimate question is how much insurance coverage you need for your condo unit. You need to consider any coverage you are offered through your HOA and whether it would require an assessment that would come out of pocket. You can offset this by purchasing personal insurance for your unit. The likelihood of flooding and the total value of the insured property are the primary considerations you will need to consider to decide whether the insurance cost will ultimately be a worthwhile investment. Your condo is finally your property, and only you will be able to determine whether the coverage offered by your HOA is enough to ward off potential risks. In some states and areas, though, it may be better to be safe than sorry.