Condo Insurance For Dummies 2011

Condominium insurance also known as a HO-6 Policy, has many little nuances that the common person should know about.  There is one area of Condo Insurance that I think is very vital and often times gets overlooked by newer agents trying to close a deal on price and by clients who may not have a full knowledge of this type of coverage.

Call Jason Shroot @ 714-988-3325

 

The area I want to address is called “Building Property.” Not “Personal Contents!” Let me explain the difference. Personal contents is everything that would fall to the ground if you turned your place upside down. Building property is the more permanent types of fixtures, or as some banks call it “Walls In.” let me give a few examples. Kitchen cabinets, granite countertops, tile flooring, carpet, bathroom cabinets, improvements on a staircase, etc…

Now here is where I want to caution the common person. Please evaluate the cost of all that Building Peroperty in your Condo, especially if you did upgrades or remodeling. Review your policy with your insurance company or agent and make sure you have enough “Building Property” coverage to cover it if there was a giant loss due to flooding from the upstairs or due to fire.

Call Jason Shroot @ 714-988-3325
This is an absolutely vital area of coverage that needs to be there on your policy! And we all know there are a lot of Condo’s in this Orange County area. Do not confuse this coverage with the “Master” or HOA policy your Association may carry on the structure of your property and the common areas. Those Master policies will not cover the inside of your home.

Please Contact Jason Shroot at Diversified Insurance Solutions For More Information On The Proper Way To Protect Your Condominium at 714-988-3325.

Is Buying A Condo For My College Student A Smart Move?

Ask the Experts: Is Buying A Condo For My College Student A Smart Move?

When parents estimate the amount of money they'll be spending on dorm rooms and off-campus apartments for the next several years, it's easy to see why many parents like the idea of buying a condo for their college student. But, assuming your child is responsible enough to take care of such a property, whether it makes financial sense to do so depends on several factors.

Recouping Costs: The costs of owning the condo, minus any rent paid by roommates, should be less than what you would pay for a dorm or apartment over the same time period. Costs may include a mortgage (including points and fees), property taxes, homeowners insurance, condo dues, and maintenance costs. And if your child plans on having roommates, you may want to add an umbrella liability policy to your homeowners insurance to protect you now that you're a landlord.

Will you come out ahead in the end? The rate of housing appreciation varies by geographic area, so research the location you're targeting. And don't forget to factor in a broker's commission when you sell the property.

 The Right Mortgage Loan: For long-term real estate ownership, it often makes sense to choose the certainty of a fixed-rate mortgage. But for short-term real estate ownership, a three- or five-year adjustable-rate mortgage may make more financial sense because the lower initial interest rate translates into a lower monthly payment. But be aware that if housing prices drop before you can sell the property, you may end up owing more than the house is worth--a situation you want to avoid.
Tax Benefits: You may be able to deduct mortgage interest and property taxes on a second property; however, the IRS limits the amount of itemized deductions high-income taxpayers can take. In addition, if rent is collected, rental property rules will apply: rent you receive will be considered income, and you'll be entitled to claim some expenses as business deductions. But second homes and rental property aren't eligible for the $250,000 per person exclusion that you get when you sell your primary residence. To learn more, consult a tax professional.

For Condo / HO6 Insurance Quotes Please Contact Jason Shroot at 714-988-3325

Why Do I Need Condo Insurance?

Why Do I Need Condo Insurance?

You own a condo and the association has insurance. So what’s the big deal?  Well, your condominium association insurance covers the condominium building, commonly owned property, and liability insurance for the association...BUT NOTHING OF YOURS PERSONALLY !!!

Unfortunately there are many cases where that insurance policy won’t cover you or your things — like a break in, water damage to your living room walls, or someone injuring themselves slipping on your wet kitchen floor.  That's why you need condominium insurance designed specifically for condo or co-op owners.

Condominium policies protect your personal property and the interior of your unit.  You will also have liability protection for bodily injury or property damage to others. 

What Does A Condo Insurance Policy Cover?

The articles of the condominium association (CSRs) and state law determine exactly what’s covered under the association's master insurance policy.

In most cases the association's coverage STOPS after the exterior walls meaning that you are responsible for the interior walls and possibly for fixtures, as well as your personal property and liability. This is where your own personal condo policy would come in.

Looking for more detail? Just give Diversified Insurance a call at 714-988-3325 & We'll Be Happy To Provide You With An In-Depth Explanation And Personalized Condo Insurance Quote.