Whether you rent a Little Rock condo, lease a Fayetteville townhome, or are thinking of buying a condo at any of the lakeside condominium communities throughout Arkansas, the Natural State has many opportunities for the convenience and affordability of condo living. Unfortunately, some Arkansas residents do not realize the importance of obtaining a condo insurance policy before it is too late and damage has been done to their home.
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Before you search for condo insurance quotes, however, there are several factors to consider.
What is Condo Insurance?
While your Arkansas condo association or landlord should carry a master policy or landlord insurance, these plans only cover the building itself and any features they own. Condo insurance provides coverage for the inside of your condominium. Depending upon the specifics of your condominium association’s master policy, your condo insurance should include coverage for the things you keep inside.
Not only does condo insurance protect you from losses to your personal property, but it can also help pay your legal fees and court costs should you face a lawsuit if someone should injure themselves while in your condo.
Why is Condo Insurance Important in Arkansas?
Your landlord or condo association has insurance that protects their needs and interests, and so should you. The average condo resident has tens of thousands of dollars worth of personal property. A single fire, break-in, or other disaster could wipe you out if it's not properly insured.
Some Arkansas condo associations may require you to carry insurance as part of the lease or cooperative agreement. It's a good idea to check with your landlord or association leader to find out what type of insurance standards you may be required to carry before looking for condo insurance quotes.
What Does Condo Insurance Cover in AR?
Condo insurance policies typically pick up where your Arkansas condo association’s master policy ends. A condo association master policy is usually one of two types:
- An “all-in” policy: This type of master policy covers the fixtures in your condo such as the appliances, wiring, plumbing and carpets, but does not cover personal property that you own.
- A “bare walls-in” policy: This policy does not cover anything contained within your walls. It may or may not cover your condo’s plumbing and electrical systems. It is recommended to carefully review the association’s master policy to determine what your condo insurance policy needs to cover.
You will need to buy more coverage if your association has a “bare walls-in” condo master policy than if it has “all-in” condo master policy.
Your condo insurance policy will cover you for loss or damage to your personal possessions, and also provide coverage for personal liability and medical payments. Additionally, it will often cover loss of use in the event that your condominium becomes badly damaged by a fire or storm and you need to live elsewhere during repairs.
Insurance for a particular condo is known as an HO-6 policy. HO-6 policies typically provide you with coverage for a range of causes of loss. You may have to purchase additional coverage for specific items such as artwork, jewelry and other items of value.
What Are My Contents Coverage Options?
Arkansas insurance companies should give you the choice between two typical contents coverage options: actual cash value or replacement cost. The differences between these two types of reimbursement methods can mean the difference between recovering quickly after a loss and a slower, more expensive process.
- Actual cash value: This type of reimbursement takes depreciation into account. For example, if your 10-year-old TV is stolen in a break-in, your Arkansas insurance company may only compensate you the cost it takes to purchase a 10-year-old TV.
- Replacement cost: This type of reimbursement ignores depreciation. Using the same example, your insurance provider should compensate you the cost it takes to replace your old TV with a brand new one of comparable size and features.
How Does Arkansas Condo Insurance Work?
Due to the fact that various parts of a condo are owned or rented by different parties, the insurance responsibility is divided. For example, if a fire breaks out in your condo community, the damages will be covered by each party's insurance provider.
Let's say this fire damages the exterior walls to your unit, a few windows, and also destroys the contents of your bedroom. Your condo association's master policy or the landlord's insurance policy may pay to repair or replace the siding and windows that were damaged, while your insurance company may reimburse you the cost it takes to replace your bed frame, mattress and any other personal belongings damaged in the fire. Both you and your condo association or landlord must file separate claims with your respective insurance providers in order to receive compensation.
What Will My Condo Insurance Quote Look Like?
Because condo insurance is generally limited to covering personal affects, the range of quotes from Arkansas insurance companies varies. If you have an extensive personal library, or a valuable electronic collection, you may see higher quotes than someone with few items of considerable value.
The quotes you see for condo insurance premiums will depend on the total value of the belongings you need to insure, as well as the coverage options you choose. For example, you may see higher quotes for a policy that includes replacement cost reimbursement versus one that offers actual cash value compensation. However, you may find the added protection that replacement cost offers is worth the extra $20 on your monthly premium quote.
On average, condo insurance quotes range from $100 to $400 per year, depending on the value of your personal property and the type and amount of coverage you carry.
Where Can I Find Condo Insurance in AR?
You don't want a single bad storm or burglary to wipe you out with zero recourse to recover from your losses. A comprehensive condo insurance policy can give you peace of mind knowing you and your belongings are protected.
Knowledgeable, independent insurance agents in the Trusted Choice network are always available to answer your questions, suggest coverage options best suited for your situation, and even assist you in filing a claim. These agents have years of experience working with Arkansas insurance providers and condo associations alike, enabling them to find a number of quotes with the best coverage options at the most affordable rates. Contact a Trusted Choice agent near you to find out how you can obtain the perfect condo insurance policy that meets your needs and budget.