Condo Unit Owners
If you have purchased a condo or co-op, the bank will require insurance to protect its investment in your home. However, you may need more insurance to cover your personal items, liability or fees that may be charged to you regarding shared areas of the building such as the lobby, roof, etc. Plus, your condo association may not be responsible for providing you with temporary living quarters due to a loss. Your personal policy is designed to protect your interests!
Two separate policies will most likely be in force in order to properly protect your investment:
Your own insurance policy.
This provides coverage for your personal possessions, structural improvements to your apartment and additional living expenses if you are the victim of fire, theft or other disaster listed in your policy. You also get liability protection.
A “master policy” provided by the condo/co-op board.
This covers the common areas you share with others in your building like the roof, basement, elevator, boiler and walkways for both liability and physical damage.
FAQ'S
I just experience a water damage due to a roof leak. Is my policy going to cover interior damages?
Since the roof is maintained be the condo association, this damage should be covered by the Master Condo association Policy.
What does condo insurance cover?
Condo insurance (Commonly referred to as HO6) will cover potential losses, due to theft, fire, water damage sustained inside of your unit. It also provides liability in the event of claims or lawsuits if a guest or a visitor is injured in your condo.
I received a bill from my HOA due to damage caused someone else. Could my insurance policy cover it?
Loss assessment coverage is a protection condo owners can use on claims involving the building or its common areas. If you purchased Loss Assessment coverage, this will assist you in the event of such a claim. Some companies provide up to $4,000 of coverage without any additional fees, and you can then endorse your policy to add Loss Assessment up to the limit of $50,000.
Sure, loss assessment coverage sounds important, but will it really ever come into play?
You might be surprised at the costly perils that can happen to or in a condo building — and just how quickly you might be called on for help.
Click on the coverage to learn more.
Carriers
