Condo insurance

Do your homework because policies differ.

Q: With hurricane season right around the corner, I am concerned about insurance for my beachfront condo. Who is responsible for fixing or replacing the building? And if my unit did get damaged, would I still have to pay the mortgage if I’m not able to live there during repairs? — Alex

A: Reach out to your community’s management and see what the building’s insurance covers. Remember that there are different insurance policies for hurricane, flood and other hazards and you may need to check all three policies.

See if the condo’s insurance will cover the contents of your individual unit, as well as your living expenses, should you have to live somewhere else temporarily. Most people I speak to are under the impression that their community’s insurance will cover their individual needs, but that usually isn’t the case.

If your condo’s insurance doesn’t provide the coverage you need, get an individual policy that does. If you have a mortgage, you will be required to have insurance that at least covers repayment of the loan, but this may not cover your personal things or any equity that has grown with the property. This also could be the case for your building’s hurricane, flood and hazard policies.

Remember that the cheapest insurance rarely is the best and that you should never take anything for granted when dealing with insurance companies. Of course, this doesn’t mean you should overpay. Just don’t skimp on important coverage to save money.

Gary Singer