Eric Horner, from Omega Financial & Insurance Services, an Eastside casuality insurance company, has written a fine article on Condo homeowner insurance concerns. Eric spent years as an insurance underwriter before joining Omega as an agent. He specializes in assisting his clients with Home and Auto insurance needs. www.425Realty.com is pleased to welcome Eric's contribution in writing about homeowner insurance concerns.
More and more buyers these days are choosing townhomes and condos over the traditional free standing homes but once you decide to go this route how do you insure them properly?
As a former underwriter turned agent, I have addressed this question often over the years and there are two main things to consider; how much insurance do you need and which type of policy should that coverage be written on.
First let's look at which type of contract is required. If the Homeowners Association (HOA) owns the outside walls and the roof then it needs to be written on a condo policy (even if it is a 3 story home with 2700 square feet). If the insured owns the outside walls and roof then it needs to be written on a Homeowners policy (even if it is a one story unit, attached to other units, with only 900 square feet).
The question of how much coverage is needed is an important one because most condo owners do not have enough. If it is a condo then you need to talk with your HOA to find out how much of the inside structure the HOA policy covers. Some do not cover anything including the walls, whereas, others cover everything including the fixtures and built in appliances. Once you know what the HOA does, or does not cover, then you should speak to an experienced agent to figure out how much it would cost to replace what you are responsible for. Most condo policies offer an endorsement which will increase the amount of coverage available for these items. If you have a home then a Replacement Cost Calculator should be used by an agent to determine the replacement cost. This includes what it would cost to rebuild the home from the ground up in the case of a catastrophic loss (such as a fire) including a contractor, labor and materials.
Once the coverage amount needed for the structure has been determined there are many other limits that need to be calculated. These include how much personal property, loss of use and personal liability is needed. If you are renting a home or apartment you should still have these types of coverage written on a Renters policy.
Eric Horner
Omega Financial & Insurance Services
425-822-5722 Ext.11
Eric Horner and Omega Financial & Insurance Services is a www.425Realty.com trusted Service Provider!
Greg Perry, Kirkland Realtor
www.425Realty.com
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