Buying condo insurance sounds simple enough, but if you’re not careful, you can end up with the wrong kind.

I found this out recently when I nearly provided the wrong kind of insurance policy for some clients. They requested condo insurance and when I looked at photos of their condo on Realtor.com, it appeared to be an attached unit, so condo insurance I was prepared to write.

But by the time escrow called and requested a certificate of insurance I had done some additional investigation and discovered that their condo was, in fact, a detached condo. Since the HOA policy did not cover the exterior, a regular homeowner’s insurance policy was needed – not a condo insurance policy which covers only the interior. Homeowners insurance, by contrast, covers the whole structure, inside and out.

But here’s where it gets even more confusing.

A few neighborhoods, like the Villa Metro condo community in Valencia, are detached condos, yet they don’t require traditional homeowner’s coverage because their HOA  pays for the insurance coverage on the exterior of the homes. So in that case, traditional condo coverage is what’s needed.

I’m explaining all of this to show you how easy it is to get it wrong. It’s extremely important to find out to what extent the HOA policy covers the units.  Having the wrong kind of policy can leave a homeowner dangerously under-insured.

To help sort this out, call 661-803-3803 or contact carol@insuranceSCV.com.