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Community Association Specialty Programs
Overview
Condominiums * Cooperative Apartments * Homeowners Associations
Primary and Seasonal
Insurable Interest For Condominiums
ITEMS INSURED: Your Association's buildings, commonly owned contents, and business liability. Building coverage is limited to the original plans and specifications. If the original fixtures, cabinets, floor coverings, stove, refrigerator and dishwasher are replaced with like kind and quality, they are covered. Upgrades including but not limited to carpeting, wall coverings and lighting fixtures are not covered under the master policy.
ITEMS NOT INSURED: Your personal property, furniture, additional living expenses, and personal liability. You should have a "Unit Owner Policy" to pick up where the Association policy leaves off. Improvements made at your expense are your insurance responsibility.
EVENTS INSURED: "Special Form" including fire, lightning, windstorm, hail, explosion, riot, aircraft and vehicle damage, smoke, vandalism, falling objects, weight of ice, snow or sleet, collapse, sudden rapid water escape or overflow from plumbing or appliances, frozen pipes, convector units, etc.
EVENTS NOT INSURED: Wear and tear , deterioration, mechanical breakdown, mold, damage by insects or animals, settling, cracking, etc. of foundation , walls, basements, roofs etc. There is no coverage for damage caused by repeated leaking or seeping from appliances or plumbing including from around the shower, bathtub, toilet and sink. These events are properly classified as maintenance items. The policy contains full details on coverages, limitations and exclusions.
TYPES OF COVERAGES PROVIDED:
BUILDINGS: Includes fixtures & equipment used in the operation of the building.
CONTENTS: Business personal property belonging to the Association.
RENTAL OR MAINTENANCE FEE INCOME: The loss of maintenance charges through the untenantability of a unit caused by an insured peril. This covers the association, not the cost incurred by the unit owner.
LIABILITY INSURANCE: Provides legal costs and indemnity for damages awarded to others (not employees) against the building because of accidents arising out of the existence of the common property. Although this coverage protects your interest in the Building's assets, it does not cover your individual liability, which would be obtained under the Unit Owner's Homeowner/Tenant policy. Liability includes water damage legal liability.
An Association Unit Owners Policy is a package type of policy, which means that it includes protection for several types of losses. Listed below is a brief description of some of the more important coverages contained within our quotation.
Additions and Alterations
Covers permanent installations not included in the master policy such as fixtures, shelves, wall coverings, built-ins, etc.
Contents - Personal Property
All personal property which is usual to the occupancy of the described apartment is covered for the insured and members of the household. Some, but not all of the perils insured are fire, lightning, wind, hail, explosion, smoke, vandalism, and theft. There are limitations for certain types of property such as: jewelry, furs, money, etc.
Personal Property Valuation -
The policy can be written on actual cash value which is the cost to replace less depreciation. Or for a nominal premium, Replacement cost on Contents which eliminates the depreciation factor in valuing your property.
Loss of Use
This coverage will pay for the costs of temporary living quarters in the event you could not live in your home after a covered loss. It includes reimbursement for miscellaneous extra expense (such as food or laundry costs) up to the amount stated in the policy.
Personal Liability
This coverage protects you against claims resulting from alleged bodily injury or property damage for which you may be legally liable. This normally excludes auto and business related claims. You would be covered up to the liability limit state in your policy for each accident.
Medical Payments
This coverage pays for medical costs of non-policyholders (those not in your immediate family) up to the stated limit. It will pay many minor claims regardless of who is responsible.
Loss Assessment Coverage
Covers assessments levied by the Board caused by a peril insured against for damage to property owned in common by the Association members.
The above descriptions are an overview of coverages, conditions, etc. and is not warranted. For actual policy coverages you will have to refer to the actual policies.
INSURABLE INTEREST FOR CONDOMINIUMS
