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Understanding Condo Insurance with “The Magpie Nest”

Updated: Dec 7, 2023

high-rise condominium

When it comes to safeguarding your home, understanding insurance can be a bit like deciphering a complex puzzle. Condo insurance, in particular, can be a maze of questions and uncertainties. In my upcoming book, Once Upon A Claim: Fairy Tales to Protect Your Ass(ets), I use “The Magpie’s Nest” to illustrate and discuss what is covered by condo insurance.

The Magpie’s Nest: A Story of Protection

In “The Magpie’s Nest,” the magpie is a meticulous bird who builds a cozy nest layering one type of material over another. Her home is a testament to her hard work and dedication.

Condo insurance, often referred to as HO-6 insurance, is designed for condominium owners. It differs from traditional homeowner insurance because it covers specific aspects of condo ownership. The key to comprehending condo insurance lies in understanding what’s covered and what’s not.

The Building vs. Your Unit

One of the fundamental aspects illustrated in “The Magpie’s Nest” is the distinction between the building and your unit. Condo insurance typically covers what’s inside your unit, including your personal belongings and any improvements you’ve made. In the story, the Magpie’s inner-most wall is covered while the wall cavities would belong to the condo association.

Condos have associations: the group of individual owners, and the individual owners themselves. Therefore, there are two policies that cover a condominium building: (1) the condo association, aka the master policy, and (2) the policy belonging to the owner of the individual condo unit.

Understanding condo insurance can be a daunting task, but by using engaging stories like this one, the complexities become more accessible and relatable. So, as you embark on your condo ownership journey or review your existing condo insurance policy, remember “The Magpie’s Nest.” Protect your own cozy nest with the right insurance coverage, ensuring that you, like Magpie, can nest securely and enjoy the comforts of home without worries.

For more valuable insights and expert tips on insurance, stay tuned to our upcoming blogs.

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