What is Condoowner Insurance?
A Condominium combines the convenience of apartment living with the investment advantage of ownership. This form of ownership may create some unique insurance challenges.
You insurance agent offer a policy specifically designed for individual condominium unit owners. Condo Unit Owner policy is for the customer who owns and occupies (at least part of the year) a dwelling unit in a structure owned and insured by a Condominium Association, a Townhome Association, a Cooperative, a Homeowner Association, a Planned Community or similar types of organizations.
In many instances, the condominium/association entity assumes responsibility for insuring certain types of damage to the dwelling structure. When the condominium/association insures the structure, a unit owner policy is normally written to cover the unit owner.
In other instances, the condominium/association does not insure the structure. In this situation, a homeowner’s policy would be written for the unit owner, just as it would be for an insured person with a conventional home.
Why do I need?
You have chosen a popular alternative to buying a one-family home or renting an apartment.
With ownership comes the need to protect your investment through insurance. Buying coverage, however, is different for a condominium/ association owner than for owners of conventional homes or renters. That is why a special unit owners policy has been developed.
The Condominium/ Association Master Policy
- Because it can be more efficient or economical, your association may insure all the building and common elements under a single package policy, commonly called an association master policy. The three typical ways to provide coverage, all through an association policy: Insures the basic building(s) (walls, roof, floors, elevators) but leaves to you the responsibility of insuring appliances, carpeting, cabinets, wall coverings, and other items in your unit, and in some instances the interior walls.
- Insures both the basic building(s) and the items within your unit other than personal property.
- Insures both basic building(s) and includes unit owner fixtures and improvements.
Building Coverage
When an association master policy insures some of the buildings, a condominium unit owners policy provides coverage for: - Items not covered by the association master policy that may be your insurance responsibility.
- The value of building additions or alterations made by you, at your expense.
- Value added (If you've put in a better quality carpet than was originally there, for example, this coverage would make up the difference in case of loss).
- Damage to your unit not compensated because of the master policy deductible.
Your Personal Property Coverage
Because you have a large investment in your personal property, you need enough coverage to compensate you if you suffer a covered loss.
One study has found that many condominium/ association unit owners are underinsured in terms of their personal property.
Whatever type of association you live in, a good way to be certain you have adequate coverage is to complete an inventory of your possessions and their purchase date and price. Some insurers have inventory forms available to assist you.
Put your inventory listing in a safe place outside your home. Photographs or video will supplement your inventory. To speed up your claim settlement if you have a covered loss, save receipts for major purchases.
Check to make sure your policy has an inflation-guard feature -- one that automatically increases coverage for belongings.
Other Special Needs
If you operate an office or small business in your home, you may need special coverage. Check with your agent if you have a home business. This will help make sure that you have the right kind of coverage.
Putting it all together
Condominium/ association living has grown in popularity and the insurance industry has responded by providing a broad selection of coverages and policies. Remember, however, that conditions in condominium/ association bylaws and other governing regulations may vary widely. Be certain that your policy covers any potential gaps in the condominium/ association master policy.
Discuss these needs with your insurance agent -- someone you most likely already trust for you car, life and health insurance needs.
Don't delay. The best protection against financial loss is well-planned coverage of your home and your possessions.
Differences with the standard home insurance policy
A unit owners policy is usually appropriate for the individual condominium/association unit owner when the association insures the physical structure. It is somewhat like a standard home insurance policy, with some differences.
How it’s similar
- Coverage A, Building Property, protects your items of real property which are a part of your unit and your responsibility according to the governing rules of your Condominium/ Association.
- Coverage L, Personal Liability, can help protect your assets in case you are legally responsible for property damage or injury to others.
How it’s different
- The unit owners policy can help you meet certain obligations that arise from your shared responsibility within the Condominium/Association.
As a condominium owner you have special insurance needs.
Your condominium building structure and all common property are usually protected by a policy purchased through the condominium association, but what about your personal belongings, theft losses, and personal liability protection?
Check out the answers to these and other commonly-asked questions about condominium insurance.
Many condo owners don't realize they have a lot to lose, whether it's personal belongings or loss due to legal liability. If you don't already have a condominium owners insurance policy, you may have questions about the importance of condominium insurance and the coverages provided. Checkout the answers. You'll be surprised to learn just how much you risk losing without proper insurance for both your personal liability and your personal belongings.
- Why would I need a condominium owners policy if my association has insurance?
- Your association does not provide insurance protection for the personal belongings in your individual unit or for damages resulting from an accidental loss which you become legally obligated to pay.
- What will the Condominium Owners Policy provide?*
- Most of your personal belongings are covered from loss by fire, theft, and many other types of insured perils up to the limits stated in your policy. You're also protected against loss from theft both at home and away from home, and against liability losses for accidents to visitors in your home -- and more!
- Would condominium insurance cover extra living expenses I might have to pay if my building becomes uninhabitable due to a covered loss?
- Yes, in fact an excellent reason for having condominium insurance is the Loss of Use of Your Residence Premises Coverage. The policy will pay the reasonable increase in your living expenses necessary to maintain your standard of living for up to the amount of time specified in the policy if you're forced to move out because of damage to your residence by an insured peril (subject to policy terms and conditions).
- What would happen if the limits of the condominium association policy weren't sufficient to cover a major loss?
- You could be responsible for paying additional assessments out of your own pocket if your association's insurance isn't enough. If you purchase the Optional Loss Assessments coverage your share of covered losses will be paid up to the Loss Assessments Coverage limit (subject to policy terms and conditions).
- What if I'm held-up while I'm away from my home, or if I'm a pick-pocket victim?
- A Condominium Owners Policy can provide coverage for theft whether it occurs at home or away from home. This coverage includes protection against loss from robbery, pick-pocket theft … even credit card loss, forged checks, or counterfeit money (subject to policy terms and conditions).
conditions and exclusions may apply.
- Would I be able to replace my television if it were destroyed by fire or stolen?
- You could if your condominium owners insurance has replacement cost coverage such as the Personal Property Replacement Cost option available. If you purchase this option, you could repair or replace your television (or other covered items) if damaged by an insured peril (subject to policy terms and conditions). In addition, there is no deduction for depreciation if the item is replaced (up to the limits stated in your policy).
- If a guest falls or is injured in my home, would I be covered by my condominium owners insurance?
- A Condominium Owners Policy includes Guest Medical Protection Coverage. If a guest is accidentally injured in your home, the policy will pay the guest's medical expenses up to your coverage limits (subject to policy terms and conditions).
- What if my child accidentally breaks a neighbor's window?
- A Condominium Owners Policy covers property damage caused by you or your family members who are residents of your household (up to policy limits and subject to policy terms and conditions).
