Condo Coverage: HOA Coverage vs Owner Coverage.

Purchasing a condo comes with many benefits - and possibly additional benefits that are covered under the home owners association.  But often HOA coverage is different from owner insurance coverage. Here are few of the differences:

The Insurance Information Institute offers these guidelines for things typically covered by an HOA vs Owners Insurance:

HOA Coverage may include:

• Liability protection that may help cover legal or medical costs if the association is hit with a lawsuit for example, if someone were to sustain an injury from slipping and falling in a common area maintained by your association.
• Property coverage, which helps provide protection for the "common areas" of the building shared with all the other residents, like the roof, elevator, basement, courtyards or walkways.
• The association's policy, however, may or may not extend to the inside of your unit. And its coverage could be dependent on your state's laws. The Insurance Information Institute (III) says in some cases, the association's insurance may help protect the bare walls, floors and ceiling of your condo. You would then be responsible for covering things like kitchen cabinets, appliances, bathroom fixtures, and any plumbing and wiring in your unit.
• Other times, the association's coverage may help protect your condo as it was built, including fixtures such as the original tub and appliances, according to the III. In this case, you would likely be responsible for the cost of replacing any upgrades in your unit.
• The only way to really know which structural parts of your condo are covered by the association is to ask for a copy of the master insurance policy. Then, you can shop for your own insurance with a clear picture of your needs.

Condo homeowner insurance policies may include the following coverages:

• Protection for your personal belongings and damage to the interior of your unit
• Additional living expenses if you're the victim of a theft, fire or another disaster covered by your policy. (This coverage is usually available only if the covered loss makes your condo unfit for living.)
• Liability protection to help protect you if you're sued or if you are found at fault after someone has an accident in your unit
• There may be availability for common additional coverages such as: "unit assessment" coverage may reimburse you for your portion of a bill split among all condo owners for a covered loss, such as a fire in your building's lobby, while water backup coverage may help water protect your place against damage caused by a sewer or drain back-up.

 

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com .

                                                 

 

This blog is written with my opinions and my opinions are  presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions.    Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .