Condo Insurance in Michigan

Purchasing a condominium is exciting, and you will want to protect your new home. Much like a house, you will need condo insurance to ensure that you have peace of mind in knowing that your investment is protected.

In Michigan, when you purchase a unit in a complex, a condominium association will more than likely require you to carry insurance on your unit. Under Michigan law requirements, every condominium association is required to carry insurance over the entire condominium. Still, most of the condominium association bylaws will dictate that you also carry condo insurance on your particular unit under a separate policy. In other words, the condo association will lessen the burden on you. However, you will still need to have the necessary protection for your condo under Michigan law since the condo association only needs to cover the building exteriors in which your condo is located, along with the common areas that are located within your condominium complex.

Condo insurance coverage

When you think of a homeowner's insurance policy, you understand that it will cover your entire home, inside and out, but condo insurance works a bit differently. Condo insurance only covers property damage and liability within the inside area of your condo.

Before purchasing condo insurance, you will want to go over your condo association policy first so that you will understand what it covers and how much coverage is already in place. You will also learn of the rules set forth by your condo association for the requirements placed on you for your individual unit.

There are three different types of condo association policies that you can choose from depending on your needs and preferences.

• All in or all-inclusive will protect your unit inside and out, including anything you have installed, additions, and fixtures that are in place inside your condo.
• Special entity insurance will cover the structure of your condo and fixtures but does not include things you have had installed.
• Bare walls in and wall studs in insurance only covers the structure of your condo and nothing on the inside that is installed.

You will also have to obtain insurance for your personal possessions. If all this seems a little confusing, never fear because the experienced and knowledgeable condo insurance agents at The Vernon Agency in Vernon, MI can help you determine the best policy for your new condo!