If you're looking to purchase a condo, then some legal experts warn that you should be cautious to see if either your co-op, bank or condo board requires you to take out insurance before you close on its purchase.
It's commonplace for a condo association or co-op to require you to show proof that you've taken out insurance before you schedule the closing on your condo.
Increasing in popularity are condo associations requiring prospective condo owners to demonstrate that they have such coverage to qualify to sit down and meet with the board for an interview. The purpose of having such a requirement in place is to ensure that you have ample protection to cover damage should something go wrong within your unit or trickle down to someone else's.
A condo board may even require you to also take out personal liability coverage to protect them from being held financially liable to such things as contractor injuries or ones caused by your dog biting someone.
On the off chance that your condo co-op or board doesn't require you to procure insurance on your property, it's likely that your mortgage lender will. In this case, you'll likely be required to have a master policy.
This type of protection covers the exterior of your unit and the common areas surrounding it. It doesn't cover the interior. To protect that, you'll have to take out an additional policy. Many banks will delay a closing until proof of a master policy can be provided.
Even in rare instances in which neither your bank nor your co-op or board require you to take out insurance, most legal experts would recommend it. Having it can demonstrate to the board that you intend to be a responsible homeowner. Also, and perhaps more importantly, it can protect you from experiencing financial ruin if you were to be sued for damages or injuries related to your living there.
If you're considering purchasing a condo and you're looking to learn more about the closing process, then a Melbourne, Florida, attorney can advise you on how it works.