How does property insurance work inside the condominium?
Anyone who works with condominium management knows the importance of safety for the health of this development. One way of promoting such security is the mandatory building insurance for codnomination.
Property insurance is a mandatory item in condominiums. As each real estate unit has its own particularities, it is up to the administrator to choose the type of insurance that best suits the needs of its clients. Otherwise, the tenants may be uncovered in the event of a disaster that results in material damage.
In this article you will learn about the characteristics of property insurance. We have listed three types of existing insurance and information on what the procedure should be in case of renewal. In addition, you will know what to evaluate before taking out insurance. Follow us!
What are the characteristics of property insurance?
The hiring of property insurance is important to guarantee some basic cover to the tenants. In addition, it is not just an extra security: it is a mandatory item for condominiums according to article 1,346 of the Civil Code.
Property insurance has three types of coverage: basic, broad and accessory. It is mandatory to hire basic coverage, the other options being optional.
In this indispensable modality, fires, lightning strikes and explosions are covered. It is good to know that property insurance also covers common areas, but only bears losses in condominium properties if the damage originates from these areas.
For example: if an explosion occurs from the gas pipeline in the gourmet area and another 3 apartments are affected, the insurance will cover everything. However, if the explosion occurs in one of the three apartments and causes the same damage, the insurance will cover only the damage caused to the gourmet area.
An important point to be considered is that the property insurance is seen as an ordinary expense of the condominium, therefore, it is part of the condominium fee and there is no need to consult the tenants via the assembly for its hiring (only in the case of basic coverage).
How to proceed with the insurance renewal?
The renewal of property insurance is the responsibility of the condominium administrator. Much attention should be paid to this aspect, as in case of delay, fines may apply. In addition, without insurance, tenants are completely unprotected against catastrophic events.
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Here, it is worth noting that the payment of the mandatory insurance is an expense of the tenant of the property. The justification for this is that it is an ordinary expense, and as such, it must be borne by the tenant. If additional coverages are contracted, these will be seen as extraordinary expenses. In this case, the owner of the property must bear the cost.
What to observe before hiring?
First of all, it is of paramount importance to choose a good insurer. This can be done by conducting an online reputation survey.
Other points that must be analyzed are the coverage required. It is ideal to identify what is really needed. After this step, request a proposal and carefully evaluate the policy submitted. Be sure to read nothing, ever!
Property insurance should be seen as more than just an obligation: it is an additional security for tenants, and whenever possible, additional contracts should be made. Security is never too much, and since the value of the insurance is prorated among tenants, it makes perfect sense to invest time and dedication to hire the insurance that best meets the needs of the condominium in question.
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