Why Lenders Require Condo Insurance

Posted on December 30, 2024December 23, 2024 by admin

If you’re planning to buy a condo and need to take out a mortgage, your lender will likely require you to have a condo insurance plan. Even if you’re not taking out a mortgage, condo insurance coverage is still a wise idea. If you need help selecting the right insurance plan and are looking for agents who serve Round Rock, TX, and nearby communities, consider working with DGIA LLC. Let’s explore why lenders require insurance.

Lenders Aim to Mitigate Risks

Simply put, the right insurance plans mitigate many risks. This is true not just for the property owner but also for lenders. Mortgages are collateralized, meaning the loan is backed up by collateral, typically the property purchased.

If the borrower defaults on their loan, the lender can take possession of the home to sell and recoup money. This means the value of the property is significant to the lender. The more valuable the property, the more the lender will be able to recover should they have to sell the condo or home.

If a storm or other disaster damages a condo property, the value of individual condos will decrease, especially if the property isn’t repaired and restored. While the condo’s management organization may have insurance covering some of the damage, that insurance probably won’t cover everything.

The right condo insurance will provide additional coverage and may cover storm damage to specific condo units, protecting both the property owner and the lender. Of course, reading the fine print of any coverage plan is crucial to understanding what’s covered. If you need help selecting condo insurance and want to work with agents servicing Round Rock, TX, DGIA LLC can help.

Condo Insurance Coverage for Natural Disasters

Posted on February 28, 2024February 26, 2024 by admin

Condo Protection Against Unforeseen Weather Events

Are your condo and its belongings shielded from unpredictable weather conditions? If not, you need to secure additional insurance coverage. Take stock of your valuables that could be exposed to damage, and then connect with an agent in Round Rock, TX, for a consultation.

Floor Coverings

Inclement weather could wreak havoc on your condo’s floor coverings. It’s a good idea to consider getting insurance for pricey coverings or floor types that would be hard to replace. Record flooring dimensions and the flooring type within each room. This information can guide you in adding the appropriate floor products to your policy.

Windows and Window Treatments

Windows and window treatments that you’ve purchased for your condo should also be insured. They can be lost or damaged in the course of a natural calamity. Keep track of your investment in glass panes, blinds, shades, and other window items to decide on a suitable insurance coverage amount for these possessions.

Patio Equipment and Furnishings

If your condo boasts a patio, you might own furniture and equipment on it that could benefit from insurance coverage. After inspecting your patio and noting down all items worthy of insurance coverage, make the necessary modifications to your policy.

Contact DGIA LLC

Our agents at DGIA LLC are ready to assist you. After reviewing your condo insurance policy, they’ll make necessary changes reflecting the coverage needs for the assessed items.

A guide to condo insurance coverage

Posted on April 11, 2023May 1, 2023 by admin

When you want to enter the housing market, one of the affordable ways to do that is to purchase a condo. At DGIA LLC in Round Rock, TX, we are an independent insurance agency that works hard to make sure that you have the right condo insurance for your needs.

Condo Insurance: The Basics

Condo insurance has many of the same types of coverage as home insurance. At the same time, condo coverage is unique to condos. Along with the benefits that you get from your HMO payments every month, your condo association also has an insurance policy that covers the exterior of the building that houses your condo. It also covers the shared common areas like the lobby, elevator, parking lot, pool, and any other shared amenities.

Your property insurance coverage on your condo policy will begin at the point where the condo association insurance stops. So the fixtures inside your individual unit are usually covered by your insurance unless the condo coverage is "all in". Read your covenant so that you won’t get a surprise if you have to file a claim.

Your liability coverage protects you from actions taken by someone injured inside your unit. The condo association’s master policy covers the outdoors and the common areas.

When it comes to your personal property, the coverage is much the same as home insurance. You can opt for the current value or replacement cost. It is up to you how much you want to cover your property and how much you will actually replace.

The final piece of coverage is your loss of use coverage. If your condo is damaged by a covered hazard, this insurance will pay for a place for you to stay while your unit is being repaired.