Condo Owners face a lot of the same coverage exposures that a
homeowner does, and in some cases, even more. Condo Associations
have a master policy that covers certain things, but
understanding where that policy leaves off and where your condo
policy picks up is crucial. We assist clients by reviewing their
condo docs to help them determine how much coverage they need to
in place to cover not only their personal property, but also any
part of the actual structure for which they are responsible.
Some key coverage
items vital to condo owners include:
Loss
Assessment Coverage
Loss assessment is a
unique feature of condominium insurance. Under the condo
association's bylaws, each owner will be assessed a
proportionate share to cover major property and liability
losses. For example if the building and commonly shared areas
are destroyed by an insured disaster, such as a windstorm, and
the losses are not fully covered by the master policy, your
association may assess a certain amount to all unit owners to
cover the loss. Your condominium unit owners policy's loss
assessment coverage would help pay for your share of these
assessments. The standard coverage for loss assessment is
$1,000, but higher limits are available and highly encouraged.
Dwelling
Coverage
Many condo owners
are unaware that their condo associations master policy may not
cover the inside of their unit if there is a loss. Depending on
the condo bylaws and the terms of the master policy, unit owners
could be responsible for everything inside their unit past the
studs on the exterior walls. This could amount to a huge out of
pocket expense to the owner if they don?t have the proper
dwelling limits in place. As part of our new business process,
we will renew both the condo docs and master policy to determine
what coverage is provided, and then adjust the condo policy?s
dwelling limit accordingly.
To receive a
quote on your condo insurance, please give us a call or fill out
the form below.
Condo Quote
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