Condo owners are as unique as the coverage.
Condo owners are typically responsible for insuring their property and inside structure. However, rules may be different from complex to complex, and it’s important to have the proper coverage.
Condominium or cooperative unit owners own only the inside of their units. The outside of their units are owned by the condominium association or the cooperative. All insurance-related issues must be evaluated based on the condominium or cooperative bylaws. The bylaws define ownership, and this determines the required amount of property insurance. It also determines the unit-owner’s liability exposure.
This exists primarily for the personal property of the unit owner with additional property exposures defined by the applicable association bylaws. The unit-owner’s responsibility determines the amount of insurance necessary. The unit owner is always responsible for carpeting and painting, but may also be responsible for the dry wall plus the plumbing and wiring within the walls. The responsibility for windows, doors, interior electrical, fireplaces, chimneys, cabinets, counters, and other items are also defined in the bylaws. In addition to all personal unit responsibility, the insured is also responsible for assessments brought by the condominium or cooperative for damage to common property as defined in the bylaws.
It includes the antiques, jewelry, furs, electronics, and other types of property subject to sublimits and exclusions within the homeowners policy. These items are often attractive theft targets. Locks and alarms are of particular interest along with the off-premise/transit exposures and storage arrangements.
Personal Liability Exposure
This coverage is for the members of the household (including pets) and conditions related to the insured premises. The age of children, the type and breed of family pets, the social and civic organizations the family participate in can all impact the loss potential. The unit owner’s premises liability is limited to the owned unit as explained in the bylaws. The condominium association or cooperative has the premises liability for the common areas. If a member of the household becomes an officer or board member of the association or cooperative, there is added exposure for decisions made by the board.
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Your home may be be your most expensive life purchase. Therefore, it’s a great idea for your homeowner’s policy to reflect your investment.
Rental property covered under personal insurance is habitational property owned by an individual, not a corporation, partnership or LLC, and rented to individuals. The structure may consist of up to four units and the owner may occupy one of the units in a multiunit structure.
Condominium or cooperative unit owners own only the inside of their units. The outside of their units are owned by the condominium association or the cooperative. All insurance-related issues must be evaluated based on the condominium or cooperative bylaws.
In order to have all of the coverage your typical home policy covers, you must purchase a vacant home policy. There are additional underwriting criteria for these policies and generally they require that you keep the utilities on, lawn maintained and someone must inspect the property on a regular basis.
Frequently people go for years without reviewing their insurance program, even though life quickly changes. By answering a few questions, you can have the peace of mind knowing that your family and possessions are protected.