If you live in a condominium, you?re sharing the building with other people. That means you share elevators, garage, fitness centers, and other amenities. To have some sort of order, each resident must join the homeowners association (HOA). This association sets rules and handles maintenance of common areas and the building itself. And since the homeowners own the building, they need to insure it.
Homeowners Association Insurance
The HOA insurance covers the risks the general building faces every day. Basically, you pay for this policy through HOA fees that you are required to pay. But note that this policy will not cover your personal properties and risks. Therefore, you need to set up personal protection. But, before you insure your condo unit, it pays to know what exactly is in HOA insurance.
The Condo Master Policy of HOA Insurance
The most common master policy of HOA insurance is probably studs-out coverage. This coverage typically includes everything that is outside of your unit. It pays for damages caused by covered incidents like roof damages due to hail and broke elevators. Bear in mind, however, that you are responsible for everything inside your unit. That includes structural elements like floors, cabinets, walls, and fixtures.
There are HOA insurance policies that offer all-in coverage. These policies protect the building itself, as well as the common areas and structural elements in your unit. If your HOA has this type of coverage, you?ll likely need less personal coverage as you will only have your personal belongings to be responsible for.
HOA Insurance Limits
While your HOA insurance will cover the building and common areas, it can only cover up to its limits. That means there?s a chance where a severe incident may exceed your policy. If this happens, expenses to repair damages may fall on to the condo owners. However, HOA can avoid paying out-of-pocket by getting additional loss assessment coverage.
HOA Insurance Liability Coverage
Many HOA insurance cover injuries to guests in common areas, such as swimming pool or tennis court. But what about injuries happening inside your unit? Well, you need your own liability coverage for that.
HOA and Personal Condo Insurance
Your HOA insurance may determine how much of coverage you should have or even which companies you should buy from. It is important to be aware of these stipulations beforehand to avoid penalties.
Get a copy of your HOA insurance and study it. Doing so will help make sure that you?ll get proper personal coverage and avoid penalties. If you already know what coverage you need exactly, you can get a free condo insurance quote from Velox Insurance anytime.
Velox Insurance partners with major insurance carriers that will give you the best coverage you need for a reasonable price. Give us a call at 1-855-Go-Velox (46-83569) or visit us today and talk to one of our agents!