Townhouse home insurance

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PostPosted: Tue Aug 24, 2010 7:36 am   Post subject: Townhouse home insurance  

I have always believed that there's some difference between home insurance for a single family and that of a townhome insurance. Lenders will always need coverage for their loan, and I'd like to know the best coverage option for a townhome.


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Singaree
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PostPosted: Wed Aug 25, 2010 5:54 am   Post subject:   

I hope the lenders need us to get covered for up to the worth of our loan. I don't think the townhome insurance cover really matters. Remember, a portion of your dues would meet the maintenance expenses for the exterior.

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PostPosted: Thu Aug 26, 2010 5:44 am   Post subject:   

You'll surely find cheaper insurance if you have the master liability policy. You may consult with a Realtor (who belongs to your community) or a sales agent in this regard. You'd need coverage till your home's replacement cost if your policy covers the external maintenance.

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PostPosted: Thu Aug 26, 2010 6:56 pm   Post subject:   

Quote:
You'll surely find cheaper insurance if you have the master liability policy.




This is wrong.



Quote:
You may consult with a Realtor (who belongs to your community) or a sales agent in this regard.




And this is EVEN MORE WRONG!!



If you are an owner-occupant in a multi-dwelling unit, and there is a "homeowner's association" of some kind, that association is the only one with insurable interest in the structure.



As a townhome owner, you need your own HO6 (Condo) policy to protect you from the loss of the interior of the dwelling as well as your personal property.



Quote:
You'd need coverage till your home's replacement cost if your policy covers the external maintenance.




This just makes no sense at all.


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PostPosted: Fri Aug 27, 2010 5:57 am   Post subject:   

I guess some of our townhouses have this master policy while others don't. If you don't have a master policy, you may go for another policy like the ones that usually cover a single family home. On the other hand, if the townhouse has a master policy, you go for an HO6 policy.

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PostPosted: Fri Aug 27, 2010 6:19 am   Post subject:   

How about getting in touch with the HOA! The manager would probably ask the HOA agent to contact your agent. Your agent in turn will read through your policy and help you obtain the missing benefits.



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PostPosted: Sat Aug 28, 2010 9:43 am   Post subject:   

Yes, it's one way to get in touch with the HOA. At the time of closing, you should have got your HOA documents. I'd also like to mention that those of us who have our insurance through our association will need to have content's policy.


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PostPosted: Sat Aug 28, 2010 4:29 pm   Post subject:   

Quote:
those of us who have our insurance through our association will need to have content's policy.




This is exactly what the HO6 provides. That's why you need it. It also covers your negligence if it results in damage to the structure (up to your policy limits) and your personal liability to guests or others who are injured as a result of your negligence (or that of your family members, such as your child who whacks another kid with a baseball bat).



Folks, despite what Juanita stated about "some townhouses have this master policy while others don't," if you are not THE HOMEOWNER'S ASSOCIATION, you can't get a policy to cover the structure because you have NO INSURABLE INTEREST in it; your insurable interest exists only in your contents and in coverage for the walls, fixtures, and other stuff inside the dwelling, like cabinets, carpets, drapes, appliances, landlord's furnishing, etc.



"Owning" a townhome or condominium is not the same as "owning" a single family residence. Unless you actually own ALL 2 TO 4 DWELLING UNITS and lease/rent one or more of them to others, you only have a "right to occupy" your dwelling unit -- which is actually revocable if you violate the HOA CC&Rs. (More than 4 units under a single roof = an apartment building -- even though it may house multiple condominiums -- and is subject to somewhat different insurance requirements.)


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PostPosted: Tue Oct 12, 2010 7:35 pm   Post subject: townhouse coverage in an HOA  

Who answered stating that those in a townhouse HOA with a master policy cannot get a policy on the structure because they have no insurable interest? While a master policy can be issued through the HOA for the structure, the individuals owning the townhouses are also "other insureds" even though they are not a "named insured." I live in an HOA where the master policy is through State Farm and is issued through the second association, the University Community Insurance Association. That Association is composed of 749 townhouse owners. State Farm has been treating the owners as "disinterested third parties" and is creating animosity among the owners.


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PostPosted: Thu Oct 14, 2010 6:54 am   Post subject:   

Quote:
State Farm has been treating the owners as "disinterested third parties" and is creating animosity among the owners.


You misunderstand the nature of your coverage under the HOA's "master policy".



That's the whole point of an HO6 policy. You ARE a disinterested third party when it comes to having any insurable interest in the structure. The only reason to be named as an additional insured in the Master Contract is to provide some protection against personal liability for someone else's PERSONAL INJURY damages on the premises. As a property owner in a condominium/townhome complex, you and all the other owners are exposed "jointly and severally" to civil action for a third-party's losses. A judgment against one is a judgment against all. And for that the HOA purchases a policy to protect everyone against that kind of loss.



Read your mortgage contract and see what it is that you are paying for . . . the right to occupy a dwelling unit, not the right to own the structure in which your unit is a part.



An HO6 policy provides, as previously stated, protection against most losses EXCEPT to the structure through no fault of your own. If you cause a fire in your unit, and the structure has to be repaired, or worse, demolished and rebuilt, your policy will pay some of the claim due to your negligence. It's unlikely that you will have enough coverage to pay for the replacement of an entire structure. That's why the HOA owns a "master contract" to cover that loss.


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PostPosted: Mon Jan 10, 2011 9:04 pm   Post subject: Townhouse individual fire insurance  

Townhouse development with two 3 unit structures, three 2unit structures, 2 free standing structures, one original Victorian House, and one original Carriage House (property subdivided and townhouses built in the 70's.



Current board BOD planning to drop master plan insurance inplace for 25 years for individual fire hazard insurance. Several owners opposed. How do we fight this?


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rubygail
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PostPosted: Tue Jan 11, 2011 5:35 pm   Post subject:   

Fire the BOD and elect a new one. If I do the math correctly, there may be as many as 12 interested parties who are members of the HOA (one for each dwelling unit). Probably 5 members on the BOD, so the other 7 can get together, as a majority, and (a) vote to recall the BOD and (b) try to get themselves elected as the new members of the BOD. With so few votes, it is likely that one or more of the former members of the BOD would be re-elected. Option (c) would be to force the BOD to put the decision to the entire HOA membership for a vote and hope that 7 votes are cast to keep the current insurance arrangement.



There may also be something in the CC&Rs that prevents the BOD from doing what it intends to do. Someone will have to read that document to find out.



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Last edited by MaxHerr on Thu Jan 03, 2013 7:44 pm
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PostPosted: Thu Jan 03, 2013 7:16 pm   Post subject: INSURANCE FOR TOWNHOUSE  

OUR ASSOCIATION HAS 44 GARAGES WHICH 14 HAVE 2@ & 20 HAVE 1@ THEY ARE IN 3 BUILDINGS & THE ONES THAT HAVE 2 PAY$413.07 & ONES THAT HAVE ONLY 1 PAY $391.80, THE ONES THAT HAVE 2, SOME ARE IN MORE THAN 1 BLDG ALSO....the association has a master insurance plan.....Shouldn't the ones that have 2 garages pay the full price of 2 garages instead they only pay $21. more for the 2nd one...Also the board is suppose to approve of any lease, but that is not done always, they even allowed a group home to be rented with around the clock supervision....which is a business & our by-laws state residential only


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J paxton
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PostPosted: Thu Jan 03, 2013 7:48 pm   Post subject:   

Unfortunately, your questions have nothing to do with insurance. They are contractual matters. You will need to speak with a local contract law attorney for assistance with your questions.



With condominiums, the CC&Rs are the primary governing instruments, and you have to abide by them or change them. Again, that's a contractual matter.



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