HOW DO I REPORT A CLAIM?
If you Association are managed by a professional property management company, the claim must be reported to the property management company.
If your Association is self-managed, the claim must be reported by a member of the Board of Directors.
Since the Association is the primary insured, the claim must be submitted by a property manager or Board member to our agency. We will then file the claim on the Association’s behalf to the insurance carrier and track its progress.
WHAT IMPACTS MY COMMUNITY ASSOCIATION’S INSURANCE?
Insurance requirements for Community Associations are complex and are influenced by several factors including:
- State enabling statutes
- Governing documents
- Governmental requirements
- Lender requirements
- Contractual obligations
WHAT TYPE OF COVERAGE SHOULD A MASTER CONDOMINIUM POLICY HAVE?
Condominium insurance can be very complex because there are so many factors that determine the type of coverage a Condominium will need. At a minimum, a Condominium Association should have the following coverages:
- General Liability and Excess Liability
- Boiler & Machinery / Equipment Breakdown
- Crime / Fidelity / Employee Dishonesty
- Directors and Officers
IF MY CONDOMINIUM HAS A MASTER CONDOMINIUM POLICY, DO I STILL NEED MY OWN INDIVIDUAL POLICY?
Yes! Each unit owner is responsible for several items that are not covered by the master condominium policy. This type of policy is called an HO-6 policy which is specific to condominium unit owners. Your HO-6 policy should provide coverage for:
- The Association’s Master Insurance Policy Deductible: With some HO-6 companies, you need to specify that you want to cover the Association’s deductible. Failing to specify might mean your unit owner’s insurance policy (HO-6) may not be set up to cover the Association’s deductible. We recommend getting something in writing from your HO-6 agent stating that your HO-6 policy will cover the Association’s deductible should you be held responsible for it.
- Real Property Coverage: Provides coverage for improvements and betterments made to your home after the original sale of your unit, as you are responsible for insuring all unit upgrades
- Personal Property Coverage: Covers your contents and personal belongings.
- Loss Assessment Coverage: Protects you in the event a special assessment is imposed by the Association because the Master policy limits were exceeded.
- Loss of Use: Covers the cost you incur to live elsewhere when a covered loss renders your unit uninhabitable.
- Personal Liability Protection: Provides liability protection for you personally against claims from third parties alleging bodily injury or property damage.
- Sewer/Sump Backup Coverage – This coverage is not automatically included on all HO-6 policies and may require a special endorsement.
- Every HO-6 carrier is different so please discuss your particular situation with your agent to see if they have any further coverage suggestions which might apply to you.
Additionally, Renters and Investor owners also need to purchase insurance coverage even when a master condominium policy in place. Both need to protect their liability exposure and need coverage for loss to personally owned property. Renters should carry HO-4 (renters) policies and Investors should contact their brokers for how best to protect their investment property. Investor owners should require their tenants purchase an HO4 (renters) policy.
DOES YOUR AGENCY PROVIDE HO-6 POLICIES?
Yes. We have been insuring Community Associations since their inception and understand the coverages you need. In addition, we have carriers that specialize in HO-6 coverage and can provide you with the most comprehensive coverage at the most competitive rates. Please contact our Private Client Group via our toll free telephone number (877) 742-4678 ext. 128 or via email at PL@smithinsurance.com.