by Guest » Tue Jun 12, 2007 03:40 am
Many individuals think that since the association owners have purchased insurance on the association they don't need insurance to protect their home. While it is true that the association owner will cover if your condo roof flies off, it will, however, not cover damage to any item inside your condominium. So, you need to get a separate coverage for your own safety.
What does HO-6 insurance cover?
A typical condominium insurance covers damage to your condominium, your belongings from perils like lightning, explosion, hail, windstorm, fire, civil disturbance, vandalism, theft, damage from falling objects, aircrafts or other vehicles and smoke.
How much condo insurance do you need?
To be able to determine how much condo insurance you need you must make a checklist of things you have to insure. You can begin by reading the master policy for the association. By reading the master policy you can find out what it covers and how much your condominium will be protected in case of any damage.
You can make a list of the things you would be responsible for like the flooring of your condo or the wall coverings, the plumbing fixtures, cabinets, any built-in appliances, lighting fixtures and any improvements made to your condo. Take some time out to add everything up to get an idea of home much condominium insurance you need.
Making a list of the personal property that you own would be a good idea to assess properly the amount of insurance you need to buy. Ask your agent for a content replacement option and how much it would cost you. Set your personal liability at a high limit to get a good amount of coverage. You could do the same for 'Loss Assessment' to cover you for big losses.
You can make a list of the things you would be responsible for like the flooring of your condo or the wall coverings, the plumbing fixtures, cabinets, any built-in appliances, lighting fixtures and any improvements made to your condo. Take some time out to add everything up to get an idea of home much condominium insurance you need.
Making a list of the personal property that you own would be a good idea to assess properly the amount of insurance you need to buy. Ask your agent for a content replacement option and how much it would cost you. Set your personal liability at a high limit to get a good amount of coverage. You could do the same for 'Loss Assessment' to cover you for big losses.
What you need to know before buying condominium insurance?
Master policy: Go through your master policy for the condominium to find out how much you are covered under that policy. Based on that you could assess what you need to cover to protect your condominium and your possessions from any damage due to a peril.
Deductibles: There is usually an association deductible in condominium insurance. So in case of a disaster be prepared to pay the deductible that will be divided amongst the unit owners.
Coverage required: Determine what you need to cover in your condominium and based on that draw up an assessment of the amount you need to invest in insuring your property.
Cash value or replacement cost: Find out which one you are opting for. A cash value will give you only the current value of an item minus the depreciation costs while a replacement cost would offer the total cost of replacing the item.
Interior structure and contents: Your association will not cover your personal property and the contents inside your condominium. You need to purchase coverage for the structure of your home and the contents inside your condo separately.
Flood and wind coverage: Make sure you buy flood if you live in a flood prone zone. Wind coverage is generally included in a typical policy.
Deductibles: There is usually an association deductible in condominium insurance. So in case of a disaster be prepared to pay the deductible that will be divided amongst the unit owners.
Coverage required: Determine what you need to cover in your condominium and based on that draw up an assessment of the amount you need to invest in insuring your property.
Cash value or replacement cost: Find out which one you are opting for. A cash value will give you only the current value of an item minus the depreciation costs while a replacement cost would offer the total cost of replacing the item.
Interior structure and contents: Your association will not cover your personal property and the contents inside your condominium. You need to purchase coverage for the structure of your home and the contents inside your condo separately.
Flood and wind coverage: Make sure you buy flood if you live in a flood prone zone. Wind coverage is generally included in a typical policy.
Related reading:
- Home owners insurance for condominium and single families
- Do you need more insurance than the master policy for a condo?
- Why do you need condo insurance?
I have a question about ho-6 insurance. I need to purchase an ho 6 insurance policy which will, among other things, cover replacement cost for internal real property (drywall, wall coverings, carpet, window treatments, etc.). What's the rule of thumb on how much coverage to get for internal real property? The purchase price of my condo was $115k.
Posted: Mon Nov 22, 2010 04:57 pm Post Subject: Building Property
My HOA insurance policy states that I must insure my FLOOR & WALL COVERINGS. I understand floor coverings, but what does wall coverings entail?
Posted: Mon Nov 22, 2010 05:07 pm Post Subject: Condo Building Property
My HOA insurance policy states I am responsible for for floor coverings and wall coverings. What does this entail?
Posted: Fri Dec 03, 2010 04:37 pm Post Subject: HO 6
WAS WONDERING IF IT REQUIRED NOW TO CARRY HO 6 OR IS THERE A LENDER THAT DOESN'T REQUIRE IT FOR A CONDO LOAN
Posted: Wed Dec 22, 2010 03:42 am Post Subject: secondary smoke damage
I live in a condo (in Georgia). The first floor is a retail level. Recently a Cigar Bar (inside smoking allowed) opened directly under our unit. The stale cigar smell is finding its way to our condo - specifically our master bedroom and bath. We have talked to the business owner and to the management company of the building in regard to secondary smoke health hazard and the smell damaging our carpet, bedding, walls, clothes, etc.
Does our master insurance policy cover such things or our H0-6 policy (or neither)?
Posted: Wed Dec 22, 2010 03:10 pm Post Subject:
Your insurance does not cover such incursions as cigar smoke. If anything, it is a liability claim against the Cigar Bar's insurance.
Have you talked with any city officials about this -- building and safety, or health department?
Posted: Fri Dec 24, 2010 08:28 pm Post Subject: wind insuarnce
Is it necessary to include wind insurance for your own condo even if the HOA condominion has it coverd? thank you
Posted: Sat Dec 25, 2010 08:39 pm Post Subject:
Is it necessary to include wind insurance for your own condo even if the HOA condominion has it coverd?
Probably not. Your HO-6 coverage is primarily for your contents, personal liability, and damage you do negligently/accidentally to the interior of the dwelling. The structure itself, and exterior portions such as the roof, are generally the responsibility of the HOA -- see your CC&Rs for details.
Posted: Mon Jan 03, 2011 05:22 pm Post Subject:
In condos in California, if your next door neighbor caused fire and burned your condo unit, if it covered under your own condo insurance or is it covered under the neighbor's condo liability?
Thanks a lot.
Posted: Mon Jan 03, 2011 07:33 pm Post Subject:
If there was NEGLIGENCE involved on the part of your neighbor, then he bears most of the liability (to the extent you had no ability to prevent a loss to your property -- known as the "last clear chance rule" -- if there was something you could have done to mitigate your loss, then the portion beyond that point might be your liability) and his insurance would be primary when it comes to covering your loss. Of course, you can simply file the claim with your insurance company and let them deal with the subrogation matter. They may or may not recover your deductible, and if they did not, then you could still file a small claims suit against the at fault party for your deductible.
Posted: Tue Jan 04, 2011 02:15 pm Post Subject:
Thanks for your answer, what happens if the condo neighbor caused fire to your unit but has no condo liability insurance?
another scenario is if the neighbor does not have condo liability insurance but he owns another home and has homeowners insurance (HO-3), will the homeowners insurance liability cover his fire damage to other units?
Thank you very much.
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