INSURANCE INFORMATION
As required by the Association By-Laws, there is a master insurance policy that is in place to protect the Associations assets. This policy includes Property Coverage, General Liability, Excess Umbrella Liability, Directors and Officers Liability, Fidelity bond Coverage and Workers Compensation.
It is important to know that the Association does not provide all the coverage you need to become whole again in the case of a covered loss.
The Association’s buildings are insured on a “Replacement Cost” basis, against “all risk” of direct physical loss (subject to policy limitations and standard exclusions). A deductible of $2500.00 applies to each loss. The scope of coverage includes all property and fixtures which are deemed to be “common elements” as defined by the By-Laws. Those items which are included within your individual unit would not be covered and should be insured on your condominium unit owner’s policy. The Association’s coverage would replace items as per the original plans and specifications with the like kind and quality.
As individual homeowners, you should consider the following coverage’s and make a determination if you should include them in your personal condominium owner’s policy:
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Personal Property- A condominium owner’s 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.
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Additions and Alterations- Covers real property items not covered by the master policy as well as upgraded items and additions such as, but not limited to, carpeting, flooring, wall coverings, fixtures and cabinetry that you or a previous owner made to your home.
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Personal Articles Floater- Provides higher limits and worldwide protection for special property such as jewelry, silverware, fine art, furs, cameras, firearms, musical instruments, and home computers which are only provided for on a limited basis on your basic homeowner’s policy.
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Personal Liability- 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.
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Additional Living Expenses- Provides coverage for additional costs incurred if your unit is damaged by a covered loss and you have to move out while it’s being repaired.
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Loss Assessment Coverage- Provides protection against financial loss if damages to commonly owned property exceeds the amount of coverage in the master Policy. If the condo association is forced to assess all unit owners for the additional loss (or for personal liability claims against the association).
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Personal Umbrella Liability- In an effort to protect your assets from suites and judgments, you may wish to consider purchasing higher limits of liability insurance.
Keep in mind an insurance policy is not a maintenance contract; repair and/or replacement is covered only as a result of damage occurring due to an insured peril, not as a result of normal wear and tear.
The above information is provided as a reference to understanding how to design your own personal insurance program in coordination with the Association’s program. Please contact your personal insurance agent for more details.
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