A condo owner is in a unique position; they have the security of home ownership without the worry of purchasing insurance. A condo association carries an insurance policy that covers the whole building, and unit owners carry separate policies. Below, we will discuss the various parts of condo insurance policies.
Property Coverage
This type of coverage is the same for owners and renters, and its purpose is to help policyholders replace their belongings if a loss occurs. When buying insurance, you should do so with the knowledge of your possessions’ value.
Medical Expense Coverage
This coverage will pay the medical bills of guests who injure themselves on the premises, even if they are at fault.
Building Insurance
This part of the policy covers the actual building, and the amount of coverage needed depends on condo board rules. In turn, association rules depend on state law. When purchasing this coverage, you should know who is responsible for which parts of the building.
No matter who owns what, you should know that any upgrades are your responsibility. This fact can cause problems when determining responsibility after damage occurs. For instance – who pays to repair a hole in the wall? If responsibilities aren’t outlined, friction can occur. If you upgrade something that is the association’s responsibility, they are only responsible for the value of the original component.
Loss Assessment
Only condo policies must have this kind of coverage, which protects unit owners from board assessments that come when the board does not have enough insurance. For instance, if an association policy covers the building’s common areas, you may have to pay losses in excess of the coverage limit. These assessments typically come when the board has only cash value Condo Insurance in Naples FL.
Likewise, if the condo association does not have enough liability coverage, it may levy an assessment for the difference between the insurance payout and what the association has to pay to settle a legal action. Your policy should fit your situation, and it should spell out exactly what is covered. Your insurance agent with Ackerman Insurance Services can tailor a policy to suit your exact needs. Connect with us on Facebook!
