You are tired of paying rent, giving your money to someone else to build up their equity…but you are not ready to take on the responsibility of a giant yard! You don’t mind having a building of your own, but the thought of mowing every Saturday in the Louisiana heat makes you cringe! You might just be a Condominium Dweller!
In the US alone, some 66.7 million people live in common-interest communities, including condominiums and cooperatives. So, you are not alone.
And when it comes to the confusion that will almost always come with insuring a condominium, you are not alone there, either!
When It Comes To Condo Insurance, What Is Covered?
A condominium always has an association. The association has a master policy agreement that stipulates the rules and regulations, bylaws and insurance coverage for the condominium buildings and its residents.
Here are some facts you should know about your condo insurance coverage:
The condominium association owns and insures the outside structure of the condominium building. Make sure you have read and understand the bylaws for your condominium association. They will stipulate what part of the structure is owned by and insured by the association and what part is your responsibility. Bring your bylaws with you when you speak with your insurance expert to ensure you are not insuring areas that are not your responsibility.
There is no standardization in master policies for condominiums, so it’s vital to understand your specific bylaws to understand your insurable interest. And to complicate matters, some states, including Louisiana, have enacted a Condominium Act with could supersede the master policy and bylaws. A unit owner should look for a policy that offers coverage for personal property, real property/building additions and alterations, personal liability and loss assessment.
A Condo owner will almost always have an obligation in the event of losses to common property. If you don’t understand the interaction between your individual policy and the Master policy, you could find yourself inadequately insured. Learn what your obligations are in the event of losses to common property, especially for loss assessment, by working with an experienced insurance expert for adequate coverage.
Condominium owners associations are moving toward policies that provide less coverage for a lower cost. This means that more of the responsibility for loss or damage goes to you, the unit owner and demands the increase in the loss assessment coverage in your policy.
Don’t become overwhelmed. Talk to an insurance expert today to see how Henry Insurance Service can help you understand the difficult insurance decisions that come with purchasing your condo.
