What is blanket insurance?
Blanket insurance is a type of insurance policy that protects the common areas of a condominium or condo. It likewise covers the common property in an area represented by a mortgage holder's association, or HOA.
More profound definition
At the point when you purchase a home, you must take out a mortgage holder's insurance policy. This insurance covers your home and the effects inside it, in the event that a natural disaster or theft happens.
Assuming there are areas in your area or condominium complex that every one of the residents own and benefit from, your mortgage holder's insurance doesn't cover these destinations. All things being equal, your HOA needs to take out a blanket insurance policy to safeguard these areas from theft or damage.
Every resident of the condominium or neighborhood pays their portion of the blanket insurance policy. HOAs normally have required month to month or quarterly levy that help keep up with, repair, and work on common areas. The contribution additionally ought to incorporate the homeowners' part of the blanket insurance premium.
Blanket insurance is never a substitute for property holder's insurance. Rather, it is planned to improve your personal insurance policy to guarantee that each of the areas you have a financial interest in are protected from disaster.
Blanket insurance model
Numerous homeowners will have blanket insurance eventually in their lives. For instance, you might choose to buy a condominium that has a pool, jungle gym and tennis courts in the vicinity.
To guarantee these common areas, every individual who lives in the condominium complex must pay a fee, maybe $30 each month, to cover their portion of the blanket insurance policy.
On the off chance that a fierce tempest rolls through and makes huge number of dollars in damage the pool and jungle gym, the HOA will make a claim on the insurance policy, and the blanket insurance will pay to repair the damage in these common areas.
It's important to inspect a planned blanket insurance policy closely and compare it to conventional strategies to see what you would get for the extra cost.