Insurance For Your Condo, What Are The Basics?
· by Matt Fox · posted March 27, 2008
· filed under Homeowner, Personal Insurance category.
If you own a condo, there are often many questions about what your association’s insurance will cover and what it won’t cover. Also, we often hear, “Why do I need insurance when the association has insurance?”
What a unit owner policy covers:
Personal Property: This is your stuff. Turn your home upside down and shake it. Everything that falls out is your Personal Property. Your clothing, furniture, dishes, etc. and practically everything else not physically attached to the building.
Dwelling: This is the stuff attached to the building and the building. You could be responsible for carpet, drywall, cabinets, light fixtures, bath fixtures, etc. You have to read the CC&Rs to determine how much is your responsibility. Every association is different so be very careful here.
Loss of use: If you cannot live in your home because of a covered loss the unit owner policy can pay for reasonable additional living expenses you experience because of the loss.
Guest medical payments: This pays for the medical payments, regardless of fault, to guests that are hurt on your property or in your care and control.
Liability: Pays for bodily injury and personal property damage to other people that you are legally liable. If someone comes onto your property and trips and is injured because of your negligence to take care of the property, this will pay the claim (bodily injury). If you are cutting down your tree on your property and it falls onto the neighbor’s home and damages their home it would pay to repair the damaged portion of their home (property damage). There are many other examples that fall into these categories so open your mind. This also pays for legal defense costs above and beyond the actual claim paid if you are sued.
If you own a condo but rent it out, there is a similar policy to protect your interest and liability as a landlord.
If you own a condo, your association policy does not cover these items. It’s that simple. It’s up to you to pay for these if something happens, that’s why there’s insurance.
Comments
Got something to say?