Good question about condo insurance...

[FRx]

Okay, I think it's a good question because I can't find the answer anywhere.
I own the condo outright, on the 2nd floor, another 2 floors above me.
Small studio with old electrical wiring and old plumbing.

There is a master policy through the HOA and the HOA is strong.
I bought the condo cash for a little under $150k.

I have around $400k invested in securities.
My expenses are low.

Question is, do I need to buy condo insurance?

[fiby41]

Assuming from the other post that ya'll won't be living in it.

Is the building made of wood or bricks? What damage such insurance covers?

If you won't miss your sofa and utensils if destroyed, you could just rent a locker in a bank to keep important documents or take them with you.

[chicago81]

A lot of condo associations require that you carry a minimum amount of liability insurance, in case something happens in your unit that affects other parts of the building that aren't exclusively owned by you. Probably a good idea to have anyway...

[Scott 2]

What sort of insurance does the association already carry?

What is the minimum insurance requirement by the association?

If I was living there, I would probably consider a catastrophic policy - one with a high deductible (maybe 5k) that protects me to the association minimum. I wouldn't bother with insuring my stuff, because my stuff is not expensive.

Adding in the renter makes it more complicated. When I rented, I believe my lease had language to the effect that if the place burns down, my stuff isn't their problem. I don't know what the landlord's true risk exposure was.


My bigger concern in that situation would be exposure to special assessments from the condo association. With 2 units, if the reserves are not well managed, something like a new roof could hit you hard.

[Ego]

You've got a unit below. One small leak can cause a lot of expensive damage below. I've paid the bills for this kind of damage three times since November. It can get very expensive. Liability-only insurance is cheap. Worth the cost in my opinion.

[FRx]

That's great feedback, thanks.

I don't know the details of the policy. It's mostly a brick building as far as construction.

I wasn't told that I needed to carry my own policy but perhaps I missed that.
I'll probably get it, might make sense.