There are many reasons the population in Kentucky is growing, especially in the Golden Triangle area, comprised of Lexington, Louisville, and Northern Kentucky. In rural areas there are beautiful horse farms which make for picturesque drives, Mammoth Cave National Park, and two of the largest man-made lakes east of the Mississippi River. But for the majority of residents, everyday living is easiest in the city and purchasing a condo makes sense for those that don’t have time to deal with yard work and other maintenance issues. However, you still need protection.
One of the main differences between purchasing regular homeowner insurance and a Kentucky condo insurance policy (often referred to as homeowner form 6) is that you also have to consider a master policy. This is the insurance coverage that takes care of the entire building. It will typically cover the structures of all units, including the one owned by you. The master policy will also cover common areas and includes liability coverage; but don’t make the mistake of assuming this policy covers your entire unit.
Many master policies come with exclusions and what you may consider part of the unit structure may not actually be covered. If your policy doesn’t include coverage for those items, you’re vulnerable to a loss. Unfortunately, many master policies also come with very high deductibles so, relying on the HOA for coverage is not a good idea.
The gap isn’t the store in the mall. The gap is the hole where your master policy coverage stops and your personal coverage begins. The master policy typically covers only the bare minimum. This means floors without wood covering or carpet. This means walls without paint, paneling, or lighting. The danger arises when a homeowner mistakenly believes that a basic property policy will cover everything. Imagine purchasing only $10,000 in coverage and then a fire destroys your unit. Owners find out too late just how big the gap can be.
So how do you close that gap? List all structural items you’re responsible for and how much it would cost to replace them. Take the total and add at least 20% to find the right coverage amount.
Finding affordable Kentucky condo insurance quotes doesn’t have to be hard but it’s nice to know how premiums are determined. Rates will vary based on your location and the risks you run but general factors include:
The Trusted Choice® network includes over 22,000 member agencies in 27,000 locations through the nation and each independent agent is dedicated to providing personalized service. To get a custom quote and policy designed for your needs, contact a Trusted Choice member agent today.