Condominiums offer many benefits to their owners. Not having to mow the lawn, do landscaping or care for the exterior of the building lure many people into purchasing a condo. However, many condo purchasers do not fully realize how their personal exposure to property and liability losses changes simply because they moved from a traditional home to a condo.
Condominiums probably are among the most complex insurance exposures because there are so many potential parties to a claim. First, there’s you, the unit owner, then there is the association that represents all unit owners and then there are your neighbors. Some of your neighbors may be owner occupants while others may be tenants. So, when there is a loss, determining who is responsible for paying can be complicated. Here is a quick example of a common claim that can drive unit owners crazy:
You wake up one morning to find water streaming through the ceiling in your laundry room. It is pouring fast and furious and quickly soaks into the hall carpet and is spreading quickly. The ceiling dry wall is coming down everywhere and the walls are beginning to soak up the water too. You do everything you can to prevent the water from spreading, but you must find a way of stopping it at the source so you pick up the phone and call the management company. They will either send out a repair man or will refer you to your condo docs that say you should call a plumber. Realizing that those solutions will take too long, you go upstairs to see if your neighbor is having the same problem. In the hall, you meet the neighbor down stairs who is also getting water in his laundry room and was coming to see if you were the source. The neighbor above you comes to the door, and it is apparent he just woke up. You explain what is happening and he checks his laundry room to discover the hose to his washer is broken. He turns off the water and the problem is solved.
Now, comes the really messy part. Who is going to pay for cleaning up the mess and repairing all the drywall and carpet. Who is responsible? Is there legal liability, was anyone negligent? What is the Association responsible for? Does the neighbor who originated the loss own the unit or does he rent? What if he does not have insurance? You get the idea. This simple and common loss creates many questions and not all of them can be answered the same for every condo association.
The problems can be complex, but the solution is simple. If you have a condo unit owners policy, you really aren’t that concerned about how all those questions are going to be answered because you know your policy will pay for your damage. The insurance company will figure out who was at fault and will subrogate against that person. In the mean time your home is made whole again. Which in the end is all that is really important to you.
If you own a condo, Condominium Unit Owners Insurance is an absolute necessity. The Association policy will not protect your interest when you have a loss. That policy will protect the interest of the Association as a whole. The Association policy does not protect you as an individual who has suffered a loss. The unit owners policy will not only protect your unit, but it will also cover your personal property, provide you with a place to stay if you can’t stay in your unit after a loss, will pay legal fees and judgments in cases where you are responsible for someone else’s loss and even cover assessments that the association may levy against the unit owners. It is truely a magic bullet when it comes to settling condo claims quickly.
So, you are probably thinking that a policy that can quickly resolve all these complex problems is going to cost you an arm and a leg. That is the most magical part of the policy. Most people pay from $10 to $20 per month depending on how much coverage they need. That is less than a dollar a day! How much is peace of mind worth? I am thinking it is worth a lot more than a buck a day. That makes Condominium Unit Owners Insurance one of the very best insurance deals around.
Condominium Unit Owners Sample Price Quote:
Personal Property $ 30,000
Additions & Alterations $ 20,000
Loss of Use $ 30,000
Loss Assessment $ 1,000
Personal Liability $500,000
Medical Payments $ 1,000
Deductible $ 500
Water Backup Coverage $ 10,000
Total Annual Premium $ 135.00
This is a sample quote and your actual premium will be based on your specific circumstances. However, this is not a “low ball” quote. It is about average for most people. To get a quote for yourself, simply quote on the “Get a Quote” on the navigation bar. We will send you information within a business day. Or just CLICK HERE
