Condo Insurance Coverage

Condo insurance coverage covers personal property that is not covered by the owner or association who owns the property. The association's coverage normally takes care of the building itself and any liability issues that have to do with the building. Condo insurance coverage is needed to take care of inside issues such as burglary, water damage, fire, and liability protection in case someone gets hurt while inside your condo. Things to consider are amounts on property that will adequately cover the loss, payment options, discounts that might apply any limitations or exclusions, and rates.

Damages can be caused by a lot of different things. Some of these include smoke, fire, lightning, wind, theft, vandalism, and water leaks. Condo insurance coverage can provide peace of mind to the person who is dwelling in the unit. Many people put off purchasing this type of policy because they just do not think anything will happen to them and this could be true but what if it does happen to you? Those who did not purchase this type of policy that have had occurrences and losses more than likely look back at the situation and wished they would have prepared and had coverage.

When covering personal property an inventory should be kept of items that might need replacing. Some people video tape all of their possessions while others keep a list along with the values of items kept in their condo. Condo insurance coverage may have limitations on how much it will pay on personal property so the policyholder may need to have additional coverage or a rider that provides a higher dollar amount especially if there are expensive items owned such as jewelry or electronic equipment. A person should seriously consider what it would take to replace items of value when determining how much coverage is necessary. A policy may come with so much to replace property and to opt for more might mean additional costs so the amount to decide upon will depend on what it will take to modestly replace any losses.

One thing that people do not always consider when taking out condo insurance coverage is the possibility of having to pay rent somewhere because of damage by fire or water to their personal property. The association's coverage will probably take care of the building damage but not the personal property that is damaged. Having another place to stay while repairs are made is critical for many people especially if family members live in another state or country. Most people have to remain close to where they work so they can keep working.

Deciding on a deductible amount is another decision that is necessary to make when shopping for condo insurance coverage. A high deductible will probably mean a lower premium whereas a lower deductible could result in a higher premium. The monthly premium must be affordable or a person could get cancelled for nonpayment so the deciding factor should be determined by how much can be reasonably paid and not put the insured in a bind with other monthly obligations. At the same time a policy should be set up to take care of one's needs in case something happens. Deductibles can be handled a couple of different ways by the insurance company. Some want the deductible paid up front before the policy will kick in. Others will allow the policy to pay a certain amount minus the deductible so the actual amount due to the policyholder is less the deductible.

Those who put off purchasing a policy to cover personal items may do so because they do not believe it is affordable. Condo insurance coverage would be considered minimal for anyone who has been there and had losses because of fire or other occurrences. A policy expense can be worked into a monthly budget so that the person can make some adjustments to be able to afford it. It may take cutting out the meals at expensive restaurants or the clothes you do not really need but making a small sacrifice provides some security for the future which is always unknown. Of course having faith in God is important and praying that misfortune does not come your way is good but being smart and trying to plan just in case is a wise decision to make. "And Jesus said unto them, Because of your unbelief: for verily I say unto you, If ye have faith as a grain of mustard seed, ye shall say unto this mountain, Remove hence to yonder place; and it shall remove; and nothing shall be impossible unto you" (Matthew 17:20).

A couple of things to consider to help pay for the costs of insurance is to get a roommate to share the expenses or move to a more reasonable location. Use no more than about a third of income for housing costs. Trying to live above your means can be disastrous when there is not enough money coming in to meet all obligations. Condo insurance coverage can be purchased from many different sites online. Free quotes are available with most of them and some sites offer a comparison of rates to help a person make a wise choice on whom to use. Doing some research ahead of time and then making a list of everything required within a policy will help when setting down with a rep to apply for coverage. Consider the costs by making an inventory of personal property, money for lodging if necessary, personal liability if needed, and work that into a budget to see what is affordable before signing a policy.

Construction Liability Insurance

General contractors (GCs) purchase construction liability insurance to protect themselves against accidents, injuries or personal property damages while on the job. Whether residential or commercial, a construction site is just an accident waiting to happen; and falls, cuts, and bruises are par the course. Workers are prone to damage a homeowner's property mishandling materials and tools. One slip of a circular saw or shovel can cause unforeseen damage to electrical wiring or underground utilities. And in the course of remodeling or building, damage can occur when contractors begin dismantling existing structures to make room for new additions. While workers' compensation insurance covers injuries sustained by construction employees, contractors and homeowners need an umbrella of protection in case any parties involved decide to file claims for damages, or to replace materials or property lost or destroyed during building or remodeling.

Comprehensive insurance can cover sole proprietors, business partners, organizations, or tenants. Mortgage companies usually require contractors to produce a certificate of construction liability insurance before repairing or remodeling homes covered under warranty or when homeowners apply for home improvement loans. Builders, plumbers, electricians, and other tradespersons are also required to submit proof of construction liability insurance before bidding on projects, along with a performance bond which certifies to lending institutions that the contractor is financially solvent enough to complete the project without running out of cash. Counting up the costs will save money, time and heartache in the event of loss. "For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it? Lest haply, after he hath laid the foundation, and is not able to finish it, all that behold it begin to mock him, Saying, This man began to build, and was not able to finish" (Luke 14:28-30).

When it comes to the residential building industry, a lot can go wrong during the time it takes homeowners to sign a contract and the moment contractors turn over the key; and it can be a stressful time for both parties. Special orders can take weeks longer than an initial delivery date to arrive. Homeowners may want to alter expensive blueprints, and the budget can get blown out of proportion, causing contractors and their clients some sleepless nights and hot tempers. In the event that property damages are incurred in the course of the project, many homeowners will want to sue their general contractor for damages, even those caused by subcontractors or workers. Or in the event of injury, workers may want to file litigation against the homeowner or contractor. When GCs sign on the dotted line, they take on most of the responsibility for what happens on the jobsite, except for homeowner negligence, damage caused by inclement weather, or acts of God. A good construction liability insurance policy protects general contractors from frivolous lawsuits or from losing profits when homeowners get amnesia about the fine points of the contract; and it protects homeowners in the event of loss from unforeseen circumstances.

Contractors usually purchase a sufficient amount of construction liability insurance to pay for damages to residential or commercial property during the course of the contract. Subcontractors employed on the site are generally required to carry their own liability insurance; and contract clauses should exempt the general contractor from damages caused by hired help. The amount of coverage depends on the kinds of projects GCs generally take on. Contractors who gross $300,000 in contracts annually would do wise to obtain construction liability insurance to cover two or three times that amount in damages. GCs that specialize in commercial projects typically purchase policies worth millions of dollars to cover potential damages or losses. Before contractors or homeowners sign on the dotted line, care should be taken to read over clauses carefully and insure that policyholders purchase a sufficient amount of coverage.

Most construction liability insurance is priced according to the type of work to be performed on the job site. Contractors who specialize in roofing jobs can expect to pay more for liability insurance than those who handle sheetrock hanging and finishing, simply because the likelihood of incurring damage increases with the potential danger of the job. Insurance agents and underwriters issue policies based on the value of annual contracts, the number of employees, and a project's potential for damages. Since more property damages and accidents happen in the course of installing and repairing roofs, roofing companies will pay more for underwriting. Indemnity corporations charge policy holders a modest down payment and monthly fees to finance premiums over six months to a year. Underwriters also charge a premium tax and policy fee, along with interest; and policies usually go into effect at the time the first payment is made.

Construction liability insurance policies are issued by an indemnity company which provides the financial backing for general contractors in the event that loss or damage occurs. The indemnity company finances the face value of the policy, which can be three times or more than the amount of the property in question. Limits of insurance might include several hundred thousands of dollars of coverage per each occurrence and limits of $600,000 and up for aggregate values. Covered damages also include liability for personal and advertising injury; that is litigation stemming from claims that the contractor's promotional advertising in someway caused the homeowner or other interested party to incur a financial or personal loss. Limits are also computed for fire damage to property while under construction, as well as medical expenses for workers injured on the jobsite, which may not be covered under workers' compensation policies. No matter how large or small the job, in the building trades, having adequate insurance against liability is always the best policy.





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