Excellent question, given that some real estate agents tell potential condo purchasers that they don’t need insurance when buying a condo. While that might technically be true (the sale of a condo can go through without a personal HO-6 policy), insurance can protect you against having to bear the full cost of some of the accidental problems that might arise with your newly purchased asset.

First, let’s talk property insurance. While you probably do not personally own the structure of the condo building, and therefore aren’t solely liable to pay for damage to that structure, often the interiors of condos (and always your own personal contents) are yours to pay for if damage occurs. If you have insurance, and the type of damage and item are covered under that policy, then you get some help paying for that damage. If you were relying on the real-estate agent’s advice you get to pay for all of that damage yourself. For example, what if your upstairs neighbor’s water heater explodes and your bedroom closet gets flooded? You would pay out of your own pocket to clean or replace all your ruined clothing, unless you have homeowners’ insurance in place to help you out.

Now, what about liability? If you do something to accidentally harm someone else and get sued or are otherwise held responsible for the financial fallout, that could bankrupt you if you didn’t have insurance. Tragedies, sadly, happen all the time. No one ever is prepared for one that they might cause. Accidentally knock something off your balcony and hurt someone who then needs multiple brain surgeries and can never work again? You most likely will be held financially liable for the surgeries and the money they would have made for the rest of their life. Insurance can be the assist that pays for the attorneys, the court filings, and the final judgment against you. While the condo association has their own liability policy, it doesn’t cover you personally, it covers the association.

So when purchasing a condo, if you hear that you don’t NEED insurance, now you know… maybe you don’t NEED insurance, but I’m going to bet you WANT it.

Terri Guest, CIRMS, CMCA, EBP is the Northern California Sales & Marketing Representative for Berg Insurance Agency and can be reached at terri@berginsurance.com.