Condo Owner Insurance

Condo Owner Insurance
HO6 the condo owners insurance?

I the HO6 condo owner insurance a new thing now? i had never heard of it. is it a requirement mandated by law? my refinance didn’t go through because i don’t have this insurance. are insurance companies finding new ways to scam people now? real frustrating…

It is a new requirement under Fannie May that you have to have coverage for the inside of your unit. The condo association’s insurance only covers the structure and common areas. I’m in the process of refinancing and was just struck with this new rule.

Insurance coverage for your personal property and liability is always a good idea. However it wasn’t previously a lender requirement.

Flowery Branch GA Townhome Next to Lake Lanier – $125000

Personal Condo Unit Insurance Policies – Who Needs Them?

Most condo unit owners think that they are covered by the Associations Master policy, and they are correct in thinking this. The problem is that the Associations Master policy is limited as to what it covers with regard to the personal property of each individual unit owner, and the unit owners liability.

It is the condo unit owner’s responsibility to cover the contents (televisions, clothing) and additions and alterations (kitchen cabinets, flooring, fixtures) to their individual unit, as this is not covered under the Associations Master policy. More importantly, any damage, be it property or bodily injury, which is deemed to be the unit owners responsibility, will not be covered by the Associations Master policy, i.e. a water leak caused by the unit owner which results in damages to units below.

The good news is that the annual premium for such policies start as low as $500 per year, depending on the value of contents desired, and offers $300,000 of liability coverage , and also extends additional living expenses incurred when you have to temporarily live elsewhere. Condo unit owners who do not have this coverage in place are effectively self-insuring, and thereby exposed to the losses resulting from damages that effect their own unit plus liabilities to other units and other tenants personal property.

In our experience, we have encountered claims that have surpassed $200,000 in damages, so we strongly recommended this affordable piece of mind. Ultimately, this coverage relieves the Association, as a whole, from having to respond to losses that weren’t caused by the Association.

About the Author

Nausch Hogan & Murray is an international insurance broker with over 30 years experience in property insurance. One of our many areas of expertise is Property & Casualty Insurance. As the broker for the Association, we offer coverage to unit owners who are unable to place this coverage with their current broker. Please contact us if you would like to receive a quote. Nausch Hogan and Murray, 801 Brickell Avenue, Suite 2220, Miami, FL 33131. Telephone 305-377-2975.