Dwelling or Building Property Coverage Shown on the policy as Coverage A: Depending on your condo association’s master policy, you might need this to cover the interior of your unit, including fixtures, appliances, and any improvements you’ve made
- Do I have improvements and betterments that need to be insured?
- Do I have coverage for water/sewer/backup? If so, what limit? This coverage comes in handy; it covers your home and personal property in the event of water damage from a sump pump, drain, sewer overflow, or backup.
- Does my carrier offer coverage for “hidden water”? Hidden water damage coverage helps repair water damage caused by a hidden leak you can’t see within walls, floors, and behind home appliances. NOTE: must policy exclude water damage caused by continuous and repeated seepage.
- Do I have Ordinance of Law coverage? This is used when the City or County codes have been updated and the unit isn’t up to code. Ordinance of Law provides you with that coverage & protection
Personal Property Coverage Shown on the policy as Coverage C: This covers your belongings, such as furniture, electronics, jewelry, and clothing.
- Do I have replacement cost coverage? Why is this coverage so important? If not endorsed on the policy, you will receive Actual Cash Value. What is the difference between Actual Cash Value and Replacement Cost?
Actual cash value (ACV) on personal property coverage reimburses you for the value of property minus depreciation.
Replacement cost coverage pays for the replacement of damaged items so you can buy new, equivalent items. This coverage reimburses you 100% when you replace your items with new, similar items.
For those who noticed and are wondering why we went from Coverage A to Coverage C, what happened to Coverage B? Well Coverage B is for other structures which Condos don’t typically have.
Loss of Use Coverage Shown on the policy as Coverage D: If your unit becomes uninhabitable due to a covered event, this coverage can help pay for temporary living expenses, such as hotel bills and meals. This is paid out in two ways. What does your policy have and is it enough?
- By Amount: This is a fixed dollar amount that your insurance will cover for additional living expenses if your home becomes uninhabitable due to a covered peril. For example, if your Dwelling Coverage A is $100,000 your loss of use coverage might be 20% of that amount, which would be $20,000
- By Month: Some policies might specify a time limit instead of a dollar amount. For instance, they might cover your additional living expenses for up to 12 or 24 months
Liability Coverage Shown on the policy as Coverage E: This protects you if someone is injured in your unit or if you accidentally cause damage to someone else’s property. It can cover legal fees and medical expenses
Medical Payments Coverage Shown on the policy as Coverage F: This covers medical expenses for guests who are injured in your unit, regardless of fault.
Additional Coverages you need to have as a condo unit owner:
- Loss Assessment: If the condo association assesses a loss that includes damage originating from your unit, you are required to pay a portion of that assessment. Loss assessment coverage in your policy can pay these costs.
Condominium Acts and your governing documents vary by state. Be sure to work with a professional that is familiar with the Condominium Act in your state!
Review your condo association’s master policy to understand what your responsibility as the unit owner is, so your personal policy pays, if written correctly. Working with an experienced insurance agent can help you tailor your coverage to your specific needs. Give Connie Phillips Insurance a call today and let us assist you with your most valuable possession, your home. Call 888-439-0479