Condominium Insurance

Basics

A Condominium policy is a form of a Homeowners insurance with alterations to fit the Condominium owner’s needs. We cannot stress enough, to our current customers and those we would like to have as customers, that you read the insurance requirements in your Condominium Association By Laws.

If you would like, we would be happy to help you. Reading your bylaws helps in deriving a value in which you are responsible for insuring.

This is a very brief summary of coverage so let us help you with the rest.

Condominium insurance is divided into the following:

- Dwelling: The portion of your unit that you are required to insure as described in your by laws

Coverage A

- Contents: This coverage is for your household belongings.

Coverage C

- Loss of Use: This pays for your families increased cost of living if you cannot live in your unit due to a covered loss.

Coverage D

- Liability: Coverage for bodily injury or property damage due to the negligence of a person covered on your policy.

Coverage E

- Medical Payments: Coverage for medical expenses for others in your unit and out of your unit depending on the circumstances.

Coverage F

Tips

Bylaw Review - This will help you and your agent be sure you are insuring your responsibilities for an adequate amount. The bylaws are long but there is usually a very manageable section about insurance.

Understand Loss Assessment Coverage - Because this is often overlooked by agents and consumers. Loss Assessments may be charged to you by your Association for losses that were either not covered or not covered adequately by the Association’s insurance. Each unit owner may get a share of the loss and depending on the nature of the loss the amount may be substantial. Protect yourself by buying as much of this coverage as you can get. Usually only $1,000 will be included in most policies.

The key to this coverage is that the loss must be to a peril insured in your policy.

Example: an earthquake hits the East Coast and your Association had no coverage. It may assess all the unit owners to pay damages to common structures. If you have no earthquake coverage then your Loss Assessment coverage would not respond. If however, there were a fire to a common structure and the Association insurance was not enough to pay the whole claim any assessment would be covered by your policy to the limit purchased in your policy because Fire is a covered peril. This coverage also applies to Liability losses so be sure you inquire about additional coverage limits.