As a condominium owner, you receive many benefits, but you are also exposed to unique risks. Unlike a single-family homeowner, you have a number of policies in force between your personal insurance and the community's HOA insurance.
You need to make sure that your Condo Insurance not only avoids overlaps in protection (you don't want to spend insurance dollars on what the HOA is already covering) but that it also does all it can to prevent claims from seeping through the cracks - that you have the extra property and liability insurance necessary to begin where the master insurance stops.
Typically, your condominium's exterior walls are insured through the HOA (Homeowners' Association), but your individual exposures require individual protection. If incorrectly insured, you may be paying too much and you likely are assuming a tremendous investment risk - and you are not even aware of it!
Worried about costs? Don't be: Huggins Dreckman Insurance offers Condominium Insurance policies that are very affordable. A condominium policy - whether in Seal Beach, Orange County, California, or all around America - is like a suit that needs to be individually tailored: If it's too big, then you overpaid for what you didn't need; and if it's too small then you may have exposed yourself to uncovered claims or fractious lawsuits that may devour you.
Condo Owners Insurance is available at reasonable rates to anyone who owns property in a development with joint property ownership. It is distinct from Homeowners Insurance because it works in conjunction with your association's insurance policy. Here's how:
What You Need To Know About Insurance On And In Your Owner Or Tenant Occupied Condominium or Townhouse
As a prudent part of your investment, you need to place insurance - in addition to that provided by the association policies - on your Condominiums and Town Homes.
This is important for several reasons, including:
- You do not have any individual property protection under the Homeowners' Association's (HOA) policies, other than what they grant to you. The "Named Insured" under the policy is the Association - not you individually - and as such your benefits under the HOA's policy are limited to what the HOA's policy covers.
- Typically, the HOA's policies are not going to repair the interiors of your home. They'll stop at the fire wall or perhaps come in as far as the dry wall, but generally that is as far as the HOA will go. You need Condo Insurance for your own asset protection for your interior structure, personal contents, and loss of use (funds provided to you by your insurance policy to pay for your additional living expenses you incur while your home is being repaired).
- For the same reasons as the property, you do not have any individual, personal liability protection provided by the HOA; the liability protection is for the common area only. You have a personal exposure to injury to people or their property that should be covered by your own insurance. And, in order to obtain an Umbrella insurance policy, you'll need to have this basic liability insurance part in place.
Here's what you want to look for in placing coverage on Condominium and Town Homes:
- "Dwelling"/Unit Owners Additions: Protects the interior walls and structures of your unit fr special damages, including Fire, Water, Vandalism, etc Minimum Recommended Limits are $50,000.
- Loss of Use of the Premises: Make sure enough coverage is provided to let you temporarily occupy another place while your unit is being repaired following an insured damage claim. Or, if this is a tenant occupied Condo, then you still want this protection so that you can receive your lost rental income if the tenant vacates the unit because it can't be occupied after the fire, for instance, thus interrupting your rental income flow.
- Personal Contents: Your personal property inside the condominium is not covered by the association, so you'll want to have Seal Beach Condominium Insurance for these items, including itemizing possessions of high or unique value such as Jewelry, Silver/ Gold/Pewter wares, Coins, Guns, special Art items, and Furs. Your tenant, if this is a rental property, must provide their own policy for their personal contents (a Renters Insurance policy).
- Personal Liability: If Damage to other units or common areas results from a condition in or caused by your unit, or if an Injury to another occurs to another person within your unit or resulting from your unit, then you need Liability protection against claims brought against you by other unit owners, the association, and the association's insurance company. This liability protection follows you for personal, non-business exposures wherever you go, world-wide! If your Condo is tenant occupied, then your liability insurance exposure is basically the same except it is limited to this location only.
- Assessments: Protection resulting from inadequate insurance obtained by the association. Preferred coverage limits are $50,000.
- Covered Deductible: You may be responsible for a Covered Deductible resulting from a claim arising out of your unit or the common area. Your Building and Alterations protection will assist you in this area.
Here are two reasons to act now!
- It is important for your protection to have your Condominium Insurance in place before any claims are made - not just from you but also from anyone else on the condominium property.
- Huggins Dreckman Insurance can provide you with a no-risk quote within a day. Just send us a request for a quote and we'll provide you with an inexpensive policy that will protect you and your home, whether it is your Primary Residence or a rental property which is tenant occupied.