Are Earth, Fire, Wind, and Water covered by my condominium master insurance policy?
EARTH - The earth violently shakes: earthquake. Your standard condominium association master insurance does NOT cover damage caused by earth movement. However, your association is able to purchase earthquake coverage. Since the northeast does not experience earthquakes all that often, the coverage is priced accordingly.
FIRE - Your standard condo association insurance WILL cover damage caused by fire. The condo's master insurance policy will pay to have a building restored to its condition before the fire occurred. The common causes that ignite fires are older or faulty electrical wiring, a candle, or a space heater.
WIND - Wind storms and hurricanes that cause damage to your condo's building WILL be a covered loss. Be CAREFUL as your condo association master insurance policy may have a very high wind deductible. What is a wind deductible? Many master insurance policies will require a higher deductible for damage caused by wind on properties within 3 miles of the coast. The wind deductible typically ranges from 2% to 5% of the building's value! Example: Imagine your policy has a deductible of $5,000. Now, a $1,000,000 building with a 4% wind deductible has damage caused by wind. The result is the association or the unit owners will pay the first $40,000 of the total cost to fix the damage as the wind deductible (instead of the $5,000)! Ask AJ Marchionne Insurance how to find solutions so you are not $40k in the hole.
WATER - See our previous blog: Is Water Damage Covered By Our Condo Association's Master Insurance Policy? SNOW & ICE - Living in the northeast it is inevitable that we will encounter ample amounts of snow and ice each winter. If snow or ice damages your building, the damage is typically paid for by your condo's master insurance policy (assuming the cost to fix the damage is above your deductible).
By the way, who knows what missing word should be in the title?
Let us take the mystery out of purchasing Condominium Association Master Insurance. We do this by using everyday terminology that everyone understands. We also generate a simple one page chart summarizing the coverage we are offering in our Condo Association Master Insurance Quote versus your current insurance.
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If you contact us today for a Condominium Association Insurance Quote we will also provide your association with an added service of creating a special letter for each unit owner. This letter will summarize the coverage provided in the Condo's Master Insurance Policy. It will also explain how to properly dove-tail the unit owner's homeowner's insurance to the condo association's master insurance!