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Condominiums
Frequently Asked Questions
Personal Coverage
Q. My association has insurance protection. Do I still need my own insurance?
A. Yes. Each unit owner is responsible for some items not covered by the association policy, such as; building items inside your unit (see important info below), personal contents, and personal liability.
Q. What type of policy and coverage options should I consider?
| A. Occupancy | Policy Type | Estimated Cost |
| If you own and live in your unit | HO6 policy | $400 and up |
| If you own and rent to others* | HO6 policy with rental endorsement | $400 and up |
| *Year round tenants should show proof of HO4 policy (covers tenant property & liability) | ||
| If you own a Townhome or belong to a Homeowners Association, you may need a HO3 (Homeowens Policy). | ||
Additional coverage options to consider which are not automatically included above are:
- Increased Loss Assessment coverage. Reimburses you for assessments made by the association in the event the association’s policy limit is not adequate to pay for a large loss and the loss is an insured peril on your policy. (estimated cost $3-$4 per $1,000)
- Scheduled property endorsement for jewelry, art, furs and collections. (estimated cost $15 per $1,000)
- Mold coverage endorsement. Protect from ensuing mold from a covered loss. (estimated cost $50)
- Personal Umbrella Liability policy. Higher personal liability limits for lawsuit defense. (cost varies)
- Flood insurance for your personal contents and building items your association does not protect.
Q. My policy for my primary home extends coverage to my unit, should I still purchase a separate policy for my unit?
A. Some primary home policies can extend coverage for personal liability, and a limited amount of personal property. However, there is no coverage for building items inside your unit or loss assessment coverage. So yes, it is better to purchase a separate policy that better covers your unit.
Items Inside Your Unit
Q. How do I determine what building items inside my unit I am responsible for insuring?
A. The Master Deed defines all insurance responsibilities for the association and unit owners. You should first review and understand two important definitions; “Unit”, and “Common Elements”. Then read the section titled Insurance. Although all Master Deeds are different, the Insurance section commonly states one of the following sentences regarding building coverage; “the Association must insure Common Elements” or “the Association must insure Common Elements and the Unit.” Then, depending on the definition of “Common Elements” and “Unit”, you can define your responsibility for building items inside your unit to one of the three common Master Deed interpretations shown below.
| Association Responsibility | Unit Owner Responsibility |
| 1. Exterior to wall studs | Sheetrock and everything in |
| 2. Exterior to sheetrock | Wall/ floor coverings and everything in |
| 3. Exterior and entire unit minus upgrades | Upgrades and improvements only |
| If you are still unsure of your responsibility, your property manager or insurance agent will assist you. | |
Q. Does the association policy always insure the items specifically defined in the Master Deed?
A. The Master Deed defines the minimum obligation of the association and unit owner. Each may purchase coverage that exceeds this obligation.
Q. Once I know what I am responsible for, how do I determine how much coverage I need?
A. This is often difficult to do. The level of quality (i.e. average, above average, custom) of you unit’s cabinetry, counter tops, flooring, wall coverings, molding , appliances, light fixtures, and other installed items will greatly affect the amount of coverage you will need. It may be best to calculate the value of each item with someone who knows constructions costs or your insurance agent. Ultimately it is your responsibility to choose enough coverage to meet your needs.
