Condo Owners
You own a beautiful condo or cooperative, and
your Association has insured it as part of its Master Policy.
No problem...you're completely covered?
Wrong. The Master Policy only covers property that is
owned by all unit owners. This includes the actual building in
which you reside, as well as common property like a pool or
gazebo. However, your personal property, and for that matter
your personal liability, are not protected under the Master
Policy. You need condominium owners insurance to fill in the
gaps.
If you own a condo, or a co-op, you need to know all about the important protection offered
by condominium owners insurance.
Personal property coverage
A condominium owners
policy provides coverage for your furniture and personal
possessions against such covered hazards as fire, lightning,
windstorm, hail, explosion, collapse, smoke or vandalism. This
is also called Contents Coverage and it ensures that your
damaged or destroyed property is protected...up to the amount
of insurance protection you purchase.
Theft protection: the condominium owners policy also
protects your property against practically every type of theft
loss in your condo or anywhere in the world. Also included is
coverage for thefts from your unattended car or boat, even if
there is no evidence of forced entry.
Special coverage for important possessions: Most
condo policies offer special amounts of coverage for certain
types of property. For example,
- $200 for money and coins
- $1,000 for theft of jewelry, watches or furs
- $2,000 for theft of firearms
- $2,500 for business property at home.
You can
choose to increase these amounts if you like.
Optional property coverages
Every home is
different. You may require special coverages for your
individual needs. The following coverages can be purchased
separately:
- Broadened Coverage for Contents: provides
"all-risk" protection for your possessions. This means that
your personal property is covered in most situations,
regardless of the cause of loss.
- Contents Replacement Cost: pays full cost to
repair or replace most personal property in your condo with
no deduction for depreciation.
- Valuable Items Plus: provides higher limits and
worldwide protection for special property such as jewelry,
silverware, fine art, furs, cameras, firearms, musical
instruments, and home computers for an extended variety of
losses. For your convenience, no appraisal or listing of
insured items is required.
- Additional Coverage Endorsement (ACE): extends
protection or increases limits on special types of property
(for example: jewelry, firearms, or silverware). This
coverage also increases personal liability coverage by
$100,000 and includes coverage for personal injury.
- Coverage for other structures: you may own other
structures that are not part of your basic condo unit (such
as a carport, detached garage or storage shed). If these
structures are not considered to be common property, they
are not covered under your Association's Master Policy. This
add-on coverage would insure these other structures.
Personal liability protection
Liability coverage
is important protection in the event that you are sued for
accidentally hurting other people or damaging their property.
Personal liability helps to cover the associated legal costs
and related damages. Most condo owners policies provide
$100,000 (minimum) of financial protection against liability
claims and lawsuits brought by others for accidental bodily
injury or damage to their property:
- while in your condo
- caused by your personal activities, including most
sports
- caused by your children or pets.
Medical
payments: Most policies will pay up to $1,000 per person
in medical bills -- regardless of your legal responsibility --
when an accident involves bodily injury to others. Higher
coverage amounts are available.
Damage to property of others: Should you
accidentally damage someone else's personal property while
that property is in your care, your condo owners policy will
pay up to $500 for each occurrence.
Additional living expenses
If your unit is
damaged and you have to move out while it's being repaired,
you're covered! The policy pays for all necessary living
expenses (hotel, meals, laundry, etc.)...up to 40% of the
contents coverage amount you selected.
Additions and Alterations
Once we move into a new
home, we often make improvements. According to your
condominium declaration and/or bylaws, you may be responsible
for interior parts of your unit such as glass, walls and
doors.
Additions, alterations and other improvements made to your
unit are also covered. For example, if you or a previous owner
installed built-in appliances, wall-to-wall carpeting,
upgraded kitchen cabinets, etc., they are insured up to $2,500
(however, you can choose to increase this amount).
Loss assessment coverage
Condominium coverage
provides up to $1,000 of protection against financial loss if
damage to commonly owned property exceeds the amount of
coverage in the Master Policy. If your condo association is
forced to assess all unit owners for the additional loss (or
for personal liability claims against the association), you're
covered!
Deductibles
A deductible is the amount of loss
you agree to assume before your insurance coverage takes over.
The higher your deductible, the lower the cost of your policy
premium. The deductible applies to property losses only.
Liability protection does not require a deductible.
Contact Leonard Insurance for advice and a quotation.
|
