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Printable copy |
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Your Condo is Unique
By Leland J. Hendrie CLU
President, PHD Insurance Brokers, Inc. |
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Your Condo is Unique!
You Deserve an Insurance Agent
Who Specializes in Condo Unit Owner Protection.
Setting up the right insurance for a condo owner is one
of the most complicated tasks in the insurance business.
When was the last time YOU reviewed the coverage
on your condo unit owners policy?
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True Story: |
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A
condo owner decided to get her carpets cleaned
by a professional cleaning company. As a
courtesy to the workers, she stayed around to
help move some furniture. To save space, she
placed an end table on top of the couch, setting
the table lamp on the couch, right next to the
little end table.
She forgot that the lamp was not only plugged
in, but also on a timer setting.
She left her home while the carpets were drying.
While she was gone, the timer turned on,
starting a fire that caused tremendous damage
not only to her own condo unit and |
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belongings, but also severe smoke damage to 5 adjacent
units. Luckily, the fire department arrived quickly and
was able to control the fire - with water! The water
caused additional damage, especially to the units on the
floors below.
In addition to smoke, fire
and water losses to the condominiums and their contents,
there were housing expenses for all the neighbors who
had to leave their units during clean up and remodeling.
Since the damage occurred as a direct consequence of
“our” unit owner’s activities, she was held responsible
for all of the damage that occurred -- totaling several
hundreds of thousands of dollars. Even though her
neighbors had their own condo insurance, the neighbors’
insurance companies sought payment from our client.
As a condominium unit owner, you live about 6” away from
two or more neighbors. That means, your biggest exposure
is actually not the loss of your own condo and your
belongings, but the condo and property of your
neighbors. (Beware of the neighbor with antiques or an
art collection...)
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| Facts: |
Unlike
single-family homes, condominiums are insured by two
separate insurance policies - one for the complex
(through the Homeowner Association’s Master Policy)
- and one for the individual unit owner.
The problem is that it is not always clear what is
covered by which policy. Because there are two policies
needed to fully cover your exposures, there is the risk
of a dangerous gap: Usually, the Master policy’s
coverage includes common areas (walkways, pools), as
well as part of the building’s structure, and parts of
the individual unit’s structure. Does your Master Policy
include coverage for wall coverings, carpet, appliances,
interior walls, and any improvements you make? Or not?
Do you have adequate liability limits? Or not?
Unfortunately, many condo policies are sold without
these coverages being reviewed properly. In case of a
loss, this may leave an insurance gap that can be very
expensive for you. We can help! We have been writing
condo coverage in California for over 42 years.
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