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Is condominium insurance a legal obligation?
Yes, condominium insurance is a legal obligation. It is important to understand that all parts of the condominium must be covered against the risk of fire, including “private” units.
Therefore, in order to ensure that all condominium owners are complying with the law, the condominium administrator must make sure that each one has their insurance up to date.
What is the difference between group and individual insurance?
Collective condominium insurance consists of contracting insurance for all (or the majority) of the condominium owners and covers all (or the majority) of the autonomous fractions and the common parts. It is important to note that collective condominium insurance is only contracted after subscribing to hair less than those of autonomous communities.
In turn, the individual insurance is contracted by the condominium, also covering its fraction and only a percentage of the common parts. However, this can become more complex when the accident management is carried out, because it is necessary to activate the insurance of the affected fractions, or that it leads to articulating different policies and types of coverage, such as, a high number of experts.
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Therefore, there are 4 reasons to purchase collective condominium insurance:
- claims management becomes simpler, as everything is centered on a single insurer;
- the cost of insurance can be reduced (up to 50%);
- payment of compensation is faster;
- covers many fractions and the common parts as well.
But, if you have individual insurance, pay attention to these rules:
faIf you have purchased individual insurance, we remind you that you must update the insured capital annually for your fraction and must consider the value approved at the condominium meeting.
You must also present proof of payment for your policy to the condominium administration. If you fail to do so, the amount will be assumed by the administrator and he will then charge you.
Should I choose fire risk insurance or multi-risk insurance?
According to the law, you only need to purchase insurance against the risk of fire – considered minimum coverage). This condominium insurance covers damage caused, particularly by smoke, heat, steam or explosion; and associated, such as the use of fire-fighting means, destruction or removal ordered by authorities (such as firefighters and police), and rescue reasons.
However, it is increasingly common to purchase multi-risk insurance for greater security reasons. This insurance goes beyond what the law provides and covers other risks such as floods, seismic movement, storms, plumbing, breakdowns, acts of vandalism, theft, construction costs, etc. Yes, it has a higher price, but greater security and, in addition, this price decreases if the insurance is collective.
Conclusion
Condominium insurance is revealed as a fundamental tool to guarantee the safety, tranquility and comfort of all condominium owners. To invest in insurance, the administration must take the necessary care, ensuring the well-being of all.
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