Many condo owners in Tennessee think that their homeowner's association (HOA) will cover damages to their home, but most of the time it is up to the owners for repairs and replacements. In addition, your HOA policy won’t cover any of your personal belongings, so if you want to make sure your belongings are insured you will need a separate policy.
There are a wide variety of coverage options in Tennessee to make up for what your HOA doesn’t cover. Ask your agent at Choice Insurance Agency LLC about which policies are right for you. Personal belongings will be covered by replacement cost value or actual cost value. Make sure you know the difference, so if your belongings are destroyed you know if the insurance company will factor in depreciation. The interior of the structure will also be covered under your personal policy. Many owners don’t realize that items such as the floor, inner walls, and other fixtures aren’t covered under the HOA policy. If your HOA does cover much of the interior structure, they won’t cover any improvements that you make. For example, if you have added marble tile in the bathroom or granite countertops, you will want additional overage. Your HOA won’t cover costs if someone gets hurt at your condo and decided to sue you, so you need liability coverage. This will help cover bills if you are held responsible for someone else's injuries on your property. You should have a minimum of $100,000 of coverage, but you can increase coverage limits. Loss assessment coverage will help offer protection if you are held responsible for damages by your condo association, such as damage to the common area. If you are unable to live in your home because of a covered loss, loss of use insurance will help pay for additional expenses so you can maintain your quality of life. Loss assessment coverage can help make up the difference if in the rare case there is severe damage to the building and the HOA insurance can’t cover it.
Contact Choice Insurance Agency LLC for a quote on condo insurance.