As an owner of a condominium or co-op unit, your insurance needs are different from other homeowners.
Why? A Master policy purchased by your Condo/Co-op Association covers your unit’s building, the common areas, and the unit owners’ collective liability. However, the policy does not cover damage to your personal belongings or property within your unit that is caused by vandalism, theft, or fire. In most cases, the Master policy also may not cover any Additions and /or alterations,* which is a coverage component that affords coverage for losses that pertain to the permanent fixtures in your home from the studs in. Some examples of such fixtures include walls and wall coverings, floors, wall-to-wall carpeting and built-in cabinetry. One of the central interests for a condominium or co-op owner is the Additions and Alterations.*
Loss Assessment coverage is distinct to most Condo and Coop policies. Loss Assessment is an expense you may incur as a member of a condominium or co-op owners' association.† The association itself typically owns an insurance policy, but can assess its members for damage or liability claims that exceed its own policy's limits. For example, your building's roof needs to be replaced after a violent storm. The new roof costs $500,000. Unfortunately, the association's policy limit for damage to the property is $250,000. The cost difference would be split among the members of the association. Your own loss assessment coverage will pay for assessments the association makes against you because it is underinsured.
So what are some other items protected by the Condominium/Co-Op Protection Program policy?
Many other personal belongings
Covered items you take with you while traveling
Additional living expenses if you have to move out during repairs for a covered loss
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A Renters Policy is needed when you and your family are renting an apartment or house as your primary residence. Even if you own and occupy a Multiple Family Dwelling (over 3 families) you will need a Renters Policy to protect your personal property & personal liability in your own apartment. A Renters Policy will cover you and your belongings for perils such as fire, smoke damage, water damage from leaky pipes, vandalism, and theft coverage. It will cover your items such as:
Other personal belongings
Additional living expenses if you have to move out during repairs (known as Loss of Use Coverage)
Personal Liability if someone is accidentally injured while in your home, or their property is damaged and the damage is caused by you, your children, your pets, your personal activity, including most sports
Costs associated with defending you in a lawsuit related to an injury or property damage
A Renters Policy can be upgraded to also include some items such as:
Valuables such as jewelry, antiques, furs, collectibles
Some of the improvements you've made to the rental unit (known as Dwelling Coverage)
Covered items you take while traveling or away from premise (known as Off Premise Theft Coverage)
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We invite you to obtain a detailed analysis of your actual needs and a quality quote from Petschauer Insurance. Our low-cost will please you, but our excellent coverage will amaze you and more importantly, protect you, your family, and your investments. Call us today.
* Please read your association bylaws to determine proper coverage for Additions and Alterations.
† The standard limit of Loss Assessment coverage in most policies is $1,000, but can be purchased in amounts up to $50,000.