What is the importance of condo’s insurance?

After learning about condominium investments, whether they are precautions or problems that follow, ACU PAY will give you some information about the importance of condominium insurance for those who live in or as an additional rental service.

Why do we need to do the condo insurance?

Normally, a residential juristic person is responsible for the structure of a building insurance which will protect only the building. If you file for a resident loan to a bank, you need to have fire insurance as required by laws to be used as collateral to the bank in case your room is damaged by conflagration such as fire, water hazard, lightning danger, explosion (from liquid propane gas) and aircraft disaster. Mostly, the fire insurance does not protect any properties in the condominium rooms such as furniture and electrical appliances. The main function of this insurance is to cover both danger from unexpected events and other hazards.

The insurance of a condominium

The condominium can be divided into two parts: private property ownership and public property ownership.

It’s a property in the condominium area that is shared with others such as swimming pools, deck areas, fitness facilities within condominiums, etc. This common area is under the residential juristic person of the building corporation.
Personal property is our personal property such as rooms, and electrical appliances that you bought by yourself do not come from condominiums, as well as the size, width, length, and space of the terrace. If some condominiums purchase condominiums and parking spaces, the inside of the deed will include parking space.

Therefore, if you purchase a first-handed condo room, you should check the insurance with the residential juristic person first. If it is a second-handed condomunium room, you should ask the owner or the sale agent whether the condo insurance covers your personal property or not. If you look closely, you can see that the insurance doesn’t cover your room or your personal belongings specifically. If something unexpected happens, such as a fire in the room, or the contents of the room are damaged or even stolen, the owner of the room will take responsibility. If you buy a condo without going through a bank loan that requires you to take out insurance, the more risk you take.

What are the advantages of condo insurance? Is it necessary for the condominium residents?

Risk diversification

This is a major reason why condominium residents have decided to take out insurance because when unexpected events occur such as fire, earthquake, theft, and accidents, damage is often a high cost. It is because the value of our rooms is like mental value when it comes to loss. Both property and fire insurance condominiums help diversify risk. The insurance company will take care of the damage. The owner of the condominium does not have to pay for all of the expenses.

Add to the comfort of life

Another factor of condominium insurance is to live a comfortable life without worrying about the causes and to bear the cost alone. Once the worries are reduced, we will be able to live more comfortably.

Many people consider whether they should take out this condominium insurance or not. It is necessary to consider many factors, whether it is risk, and asset value, including the cost availability. Once they have decided to take out a housing insurance policy, the most important thing is to carefully examine the details of protection and exceptions so that they do not go wrong or take advantage of the benefits that condominium owners will receive in the event of an unexpected event.

References from
hometqm/grandunity/tipinsure