Risk & Business Magazine Nesbit Agencies Fall 2016 | Page 7

CONDO & TOWNHOUSE INSURANCE BY: TREY GRIFFY PRODUCER, NESBIT AGENCIES Insurance For Renters And Condo & Townhouse Owners And Why It’s Important A s you read this, the country is still recovering from one of the worst real estate markets it has ever experienced. Fortunately, the real estate market is on the rebound. Once again, young adults are looking to buy homes, condos and townhouses. Since mortgage rates are still low, it’s now becoming a cheaper option to purchase a home rather than opt for rent payments, which are ever-increasing. The decision to do so, however, is not an easy one. And there are always hidden costs which may be overlooked when people are so focused on the bottom line of their actual housing costs. The choice of buying or renting comes at the end of a consideration of a long series of variables. Among the factors that should be taken into account are the potential for relocation, personal relationships and job stability. Financing cost should also be taken into account. Even if a mortgage payment may end up being cheaper in the long run than renting, property tax, insurance, utilities and maintenance must also be taken into account. It’s understandable, given the state of the economy in recent years, that saving money for a down payment is often not a huge priority in the mind of many. Whether you buy or rent, however, there is one constant: insurance. Landlords will often require renters insurance as a part of their lease agreement. Even if it’s left out of your lease, it is still in your personal interest to carry insurance not only for the personal property that you are keeping on the premises but also for potential liabilities. You may not think that you have a lot to insure, but consider the cumulative costs of all of your clothes, equipment, appliances, tools, electronics and furniture. How much do you believe you own when you add all of that up? A minimum coverage will usually hit the mark somewhere around $30,000, but it can be tailored to your specific needs. “WHETHER YOU BUY OR RENT, HOWEVER, THERE IS ONE CONSTANT: INSURANCE.” Though people can generally understand the need to have property coverage, one thing that most people overlook is the need for liability coverage. If your actions are responsible for an injury to someone else, you will be liable. For an example, consider what might happen if the kitchen in your apartment was to catch fire and subsequently cause smoke or water damage to adjacent units or shared living spaces. Other insurance companies could then seek recovery from you via subrogation. This process could add up to thousands of dollars in legal fees and liability costs, all of which could have been avoided with a simple renter’s policy. It can be a lifesaver, even if you believe you don’t need it. For condo owners, HO-6 policies are just as important. Loss assessment coverage is an extremely important aspect of owning property. Most people don’t realize that homeowners associations (HOAs) have the ability to assess master insurance policy costs against individual unit owners. Without the proper coverage, this can generate significant expenses for individuals who may have otherwise been unaware that this could happen. It is vital that every condo owners policy includes loss assessment coverage, which covers master policy costs that may be assessed to you in the event of a claim. Basic renter’s policies are not only affordable, but they provide you with the peace of mind you need to live comfortably. Homeowners policies, like it or not, aren’t really an option in most cases. Even if they were, wouldn’t you want to protect one of your most valuable assets? For more information, please contact Trey Griffy at 952-7464302 or [email protected]. + Trey Griffy is a graduate of the Atkinson School of Business at Georgia College. He has been a producer with the Nesbit Agencies since 2012 specializing in condominium, townhome and community association insurance. For questions, comments or a free no obligation insurance quote, Trey can be reached at 952-746-4302 of tgriffy@ nesbitagencies.com. FALL 2016 | 7