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 Posted: Tue Jul 06, 2010 10:56 am Post subject: Renters insurance for condo owners |
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I have a renters policy for the condo I own. I've been asked to get a condo insurance. Do I really need it? After all, I don't own the entire building!
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Palasathena
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| Posted: Tue Jul 06, 2010 4:43 pm Post subject: |
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You will definitley want to get a Condo Insurance Policy, right away. It is very important.
The renters insurance will only cover the contents of the condo. The condo association will have a policy that covers the building itself, but typically not the interior finish out of the condo.
A common type of coverage for the condo association to carry on the building is what is called "Bare Walls Coverage." This means they will cover the roof, framing and exterior walls of the building and nothing else. It is then your responsiblity to pay for any damage from the wall studs in. This would be the sheetrock, cabinets, light fixtures and most interior finish out of the home. Some condo associations will cover a little more than this, but there is always interior finish out items that they do not cover and that a renters insurance policy will not cover as well. As you can imagine, this could cost you a lot of money in the event of a major claim. You will need to check with your condo owners association to see what type of coverage their master policy provides to you, as a unit owner.
Purchasing a condo insurance policy will not cost much more than your renters insurance and will provide you with much needed coverage.
You should also purchase Loss Assesment Coverage as an endorsement to your Condo Policy. This coverage is cheap and will protect you in the event the Condo Association has an uninsured or underinsured loss. When this happens they assess or bill each unit owner for a percentage of the amount of the total claim.
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InsuranceDude
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| Posted: Wed Jul 07, 2010 6:07 am Post subject: |
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Damages (or insured losses) to areas that are common e.g. lobbies would be covered under condo policies.
Condo policies would also cover any legal liability arising out of injuries caused to a visitor while within this common area. But the building is the responsibility of a condo assoc. and hence not covered under a condo policy. |
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steven
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| Posted: Wed Jul 07, 2010 5:28 pm Post subject: |
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That is correct Steven. But keep in mind, it is typically the exterior walls and roof of the building that is covered by the condo association policy. Not the interior finish out. There are exceptions to and variations of this, but normally interior finish out is the unit owners responsibility. Check with the Condo Association to see what type of coverage they provide under their master policy and then you will know what is your responsiblity in the event of a loss.
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Glen R VerHagen, CIC
VGW Insurance, LLP
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InsuranceDude
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| Posted: Fri Jul 09, 2010 6:34 am Post subject: |
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If you own and occupy a condo, you should never have been offered a Tenant's Policy. You need a Condo Owner's Policy, known as an "HO-6". The Tenant's policy generally only provides coverage for your personal property and some limited liability coverage. The HO-6 is more comprehensive, but as others have indicated, the Condo Owners' Association is responsible for a policy to cover the structure.
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MaxHerr
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| Posted: Fri Jul 09, 2010 10:18 am Post subject: |
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| The condo owners have to share any losses caused to a condo property, since such property are owned collectively. This happens when the insurance coverage owned by your condo association falls short. You may consider a loss assessment coverage under such circumstances. |
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roddick
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| Posted: Sat Jul 10, 2010 6:04 am Post subject: |
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I guess these condo owners have specific needs. Such needs could only be covered under policies that are specifically designed for them.
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Juanita
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