Every condominium owner has an interest in the common elements of the building, which include exterior walls, the roof, plumbing, electrical, and heating and air conditioning systems. A portion of the association dues are allocated for the condominium insurance that covers these common elements. The ownership of property and specifications for providing insurance are outlined in the condominium association agreement. Fixtures, improvements and alterations attached to the building within the individual unit such as paneling, cabinets, carpeting and various appliances may be considered either association property or unit-owners property depending on the provisions of the agreement.
The condominium association's policy is designed to cover these common elements in the event of a fire, catastrophe or other liability claim. Unit owners should be reminded, however, that the association's policy does not extend to property within the unit. To insure the loss of possessions, owners need an individual condominium unit owner's (HO-6) policy that protects things like:
- All interior built-in features (cabinets, floorings, wall coverings, appliances, etc.)
- (Not covered by the association as outlined in your particular association agreement)
- All personal property in the unit
- Loss of use coverage, which pay for expenses if the condo is uninhabitable due to fire or other covered loss
- Personal liability coverage
- Medical payments coverage
- Personal umbrella
- Scheduled valuable personal property, for things like jewelry, furs, fine art, etc.
When damage occurs to a building, both common and private areas are often affected. Informing condominium owners about what is covered by the association policy and what is left up to them is your best tool to keep everyone protected.
For more details about individual condominium policies, please contact us for a free consultation and quote.