News
**Important Information Regarding Insurance Coverage**
Posted on Jan 17th, 2012
The Master Insurance Policy provides coverage for common elements of the Condominium, as well as for Condominium Units, including fixtures and service equipment contained therein, that were initially installed by the Developer. Each Unit Owner, or any Tenant of the Unit Owner, must obtain insurance coverage for personal liability, personal property, and any betterments made to the Unit. Personal coverage for Condominium Unit Owners and Tenants is typically available through HO-6 and HO-4 Insurance Policies, respectively.
It is important to note, unless a cause of loss or consequential damage was occasioned through the fault of the Association, the Association is typically not responsible for payment of the $10,000 master policy deductible. Further, unless negligence can be proven on the part of other parties, payment of this deductible becomes the responsibility of the Owner of the Unit which incurred the loss or consequential damage. For example, if your Condominium Unit sustained damage from a leak originating in another Unit, you would have financial responsibility for the first $10,000.00 of repairs to your Unit.
Such deductible coverage is typically not provided with most HO-6 Policies. Therefore, to protect against such circumstances, Owners are strongly advised to obtain a policy from their Insurance Carrier that will cover the deductible under the Association’s Master Policy for damages to their Condominium Unit. Should you have any questions regarding this matter, we recommend that you contact an insurance agent who should be able to answer questions regarding the type of enhancements you may or may not need to make to your current policy.
It is important to note, unless a cause of loss or consequential damage was occasioned through the fault of the Association, the Association is typically not responsible for payment of the $10,000 master policy deductible. Further, unless negligence can be proven on the part of other parties, payment of this deductible becomes the responsibility of the Owner of the Unit which incurred the loss or consequential damage. For example, if your Condominium Unit sustained damage from a leak originating in another Unit, you would have financial responsibility for the first $10,000.00 of repairs to your Unit.