Although Rhode Island is a small state, there are still plenty of places to call home. Condominiums and townhouses make ideal homes for many families. They are spacious, usually located near shopping and schools, and perfect if you want to forego the worries of lawn maintenance and upkeep. In fact, Rhode Island has a large number of old warehouse buildings that have been converted to condominiums. It’s nice to let the HOA fees take care of amenities like a pool and gym, but do be sure to purchase Rhode Island condo insurance to protect your investment.
Rhode Island Condominium Statistics
- In January 2012, condo sales rose 60%.
- Median price of conventionally sold condos - $231,750
- Median price of all condos sold - $199,450 (including foreclosure and short sales).
- In the 1st quarter of 2013, 283 condos were sold.
- Distressed condo sales were down by just over 14%.
What Is Rhode Island Condo Insurance?
This form of insurance, also known as HO6 insurance, will typically apply to a condominium or a townhouse. Condos are similar to apartment buildings, while townhouses have an entrance that opens to an outside space. Both have different insurance needs than a detached home, for several reasons. A condo has individual units that comprise one main building. While the individual units are privately owned, the condo association is responsible for the upkeep of the building and grounds.
Many master policies will cover the structure of the building, including the roof, walls, wiring, and plumbing. But usually this does not include flooring, wall treatments, fixtures, and sometimes windows and doors. Rhode Island condo insurance will ensure that all parts of your home are covered, as well as your personal belongings and liability. If you make any improvements or repairs, your condo insurance can be adjusted to cover your additional investment into the home.
Watch for Gaps in Coverage
One area where a Rhode Island condo insurance professional can help is identifying certain coverage gaps that are more prevalent when owning a condominium or a townhouse. At minimum, the master policy will only cover your bare floor and walls. This means that any tiling or hard wood floor isn’t covered. Even if you bought the suite with light fixtures, they may not be covered by the master policy. This can be a problem if you aren’t aware of exclusions.
When you set a coverage limit, it must be based on an accurate estimate of replacement cost. If you leave out crucial items like your floor or appliances, your out of pocket expense may still be costly.
Your condo policy protects against loss due to fire, interior flooding from broken pipes, strong winds, hail, burglary, and theft. Condo coverage usually includes the following:
- Property damage, for interior walls, windows, ceilings, and fixtures
- Liability, for bodily injury and property damage claims against you
- Contents, for the items you keep in the home, like clothing, appliances, and electronics
You can also get vacant condo coverage, at a lower rate. This covers a condo you use only once or twice a year as a vacation home, which sits vacant the majority of the year.
For protection against natural flooding, whether from hurricanes, storm surge, or river overflows, you need a separate flood policy from the National Flood Insurance Program. Homeowners insurance and condo insurance do not cover natural flooding.
Renting a Condominium
If you live in a rented condo or townhouse, your landlord is responsible for maintaining coverage for the structure. You’re responsible for securing insurance coverage for your personal belongings and liability. Renters insurance can provide this protection. It’s reasonably affordable, and if a disaster does occur, it can pay for your time spent in a hotel.
Find the Condo or Townhouse Insurance You Need
A Trusted Choice® member agent can compare Rhode Island condo insurance quotes for you, whether you're renting or buying. You can always contact a member agent to get the information you need. You may even find a better policy that you had before, at a better price. Talk to a local agent today to get the coverage you need.