1. Condominium Insurance Sean Ponder East Tennessee District
Underwriter
2. Ponder This Condo Association by laws and how they impact
the coverage needed Building, Additions and Alterations
coveragecoverage Loss Assessment Coverage How much coverage is
needed?
3. Condominium Association Condominiums have unique insurance
needs because each unit owner owns a portion of the building. In
this sharedIn this shared ownership situation, condominium
residents will form a condo association or a condo board to oversee
the management of the property.
4. Bylaws and Articles Each condo association is governed by a
set of bylaws or articles. They provide policy requirements for
deductibles, limits of liability and the depth of protection for
personal injury and property claims. of protection for personal
injury and property claims. Condo owners are entitled to review
their bylaws and associations insurance policy. Condo owners need
to be aware of their level of responsibility so they can make
informed decisions when considering condominium insurance.
5. The Master Policy Every multi-unit building needs a master
policy The condominium building master policy must cover two key
risks: General Liability and Property (common areas). Some states
have statutes in place thatSome states have statutes in place that
specify the scope of insurance coverage that the association master
policy is required to maintain. Other states rely on the
association condo documents to establish the insuring
responsibility of the unit owner and the association.
6. What does a condo master policy cover? Standard Coverage
General Liability- This covers the condo association from a
liability standpoint. A classic example is the "slip & fall",
where someone is injured on the premises and files a lawsuit. With
a master policy you will have liability protection. The coverage
amount for liability can vary, but is often $2-5 million dollars.is
often $2-5 million dollars. Property - This provides coverage for
the common areas of your condo building, including the exterior of
the building (studs to outside walls), hallways, elevators,
sidewalks, landscaping, the roof, basement, pools and building
equipment. Much like a homeowner policy, these items need to be
covered for a condo building. The joint ownership aspect of a condo
building requires this to be covered with a master policy.
7. Common Areas Walkways Pool Gym Parking Lot or Garage
8. What is the unitWhat is the unitWhat is the unitWhat is the
unit owner responsibleowner responsibleowner responsibleowner
responsible for ?for ?for ?for ? - Personal property -Interior of
the unit-Interior of the unit - Liability, which covers the actions
of condo owner, pets and family members living with the condo
owner.
9. NationwideNationwideNationwideNationwide Condominium
policiesCondominium policiesCondominium policiesCondominium
policies provide the followingprovide the followingprovide the
followingprovide the following coverages and a fewcoverages and a
fewcoverages and a fewcoverages and a few othersothersothersothers
Personal PropertyPersonal Property Buildings, Additions and
Alterations Loss Assessment Additional Living Expenses
Liability
10. Coverage A Personal Property Imagine if you were to pick up
your condo and flip it upside down, all the belongings that fall
out would be considered personal propertypersonal property Personal
property includes all the possessions a condo owner would take with
them if they moved out or sold the property.
11. Coverage B Loss of Use Additional Living Expense covered
living expenses that is incurred if a loss requires to leave the
residence Fair rental Value covered rental value if a loss requires
a tenants to leave theloss requires a tenants to leave the
residence Prohibited Use covered additional living expense and fair
rental value if a civil authority prohibit the use because of
direct damage to a neighboring premises by a covered peril.
12. Coverage C Loss Assessments A unit owner could be subject
to an assessment made by the association for certain losses that
are not covered under the associations master policy. Under the
condo associations bylaws, eachUnder the condo associations bylaws,
each owner will be assessed a proportionate share to cover major
property and liability losses of common areas. Ex: common area
destroyed by a windstorm, tornado, hurricane, etc. The standard
coverage for loss assessment is $1,000, but higher limits may be
available.
13. Buildings, Additions and Alterations This includes coverage
for a walls-in policy. Building Coverage provides compensation to
rebuild your condos interior (including drywall, paint, flooring,
baseboards, fixtures, cabinets, sinks, fixedbaseboards, fixtures,
cabinets, sinks, fixed appliances, etc.). Some HOAs hold the owner
accountable for interior upgrades and will replace the unit in the
building back the condition you originally bought it (minus any
upgrades).
14. How much coverage is needed? Find out what the HOA's policy
covers Assign a dollar amount to the personal items Estimate the
amount the member wouldEstimate the amount the member would need to
repair or replace the interior structure by creating an MSB profile
using Condo as the style (wall in). Contact your underwriter with
additional questions.