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Insuring a Condo or Co-op?
Making
sure that your condo or co-op is properly covered begins with
a thorough reading of your condo or co-op documents (i.e.,
by-laws, provisions, regulations, etc.) It may help to have
your agent review the papers, paying close attention to items
such as:
What
property is your responsibility to insure - the internal walls,
appliances, your detached garage? What is the potential for
loss assessments? Does the association or corporation insure
common property at its replacement value? What is the association's
deductible? Are you obligated to add any extra coverages or
limits?
Next,
be aware that your coverage typically comes in two forms.
"Named causes of loss coverage" only covers the
causes of loss specified. You must prove to the company that
a covered cause damaged your property. "Risks of physical
loss" covers all causes of loss except those that are
excluded. The company must prove an ineligible cause of loss
damaged your property. Risks of physical loss coverage usually
applies to real property and named causes of loss coverage
protects personal property. The former type costs more due
to such policies typically covering a wider range of losses.
Regardless
of the coverage type, condo/co-op policies generally cover
the following:
Real
property:
Coverage
for the structural part of the condominium or co-op you individually
own such as interior walls, appliances, fixtures, plumbing,
ductwork, wiring, carpeting, flooring, possibly private garages,
and permanent improvements you make to the property.
Personal
property:
Possessions
that are portable such as clothing, furniture, toys, books,
objects of art, home electronics, computers, etc.
Loss
assessment:
Required
contributions that members make for the repair or replacement
of property that's owned in common.
Additional
living expense:
Covers
the additional cost of temporary housing, food and other increased
costs of living when you are forced from your condominium
or co-op by a fire or other covered cause of loss.
Liability
coverages:
Covers
you for your negligence in injuring other people or property
on your premises (those accidents for which the condo association
is not responsible) or through actions related to many of
your hobbies. The policy also provides defense coverage, including
hiring and paying for a lawyer (if necessary) and paying most
court costs.
Medical
payments:
Coverage
is for minor injuries to people other than residents of the
household and the payment does not require a lawsuit.
Keep
in touch with an insurance professional during such trying
times. They're already committed to providing genuine help.
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Martinson
Insurance
518 Hawthorne Street • PO Box 8
Alexandria, MN 56308
Phone: 320-763-6518
Toll Free: 800-757-6518
Fax: 320-763-5546
E-mail: agency@martinsoninsurance.com
Web: www.martinsoninsurance.com |
