Your HO-6 condominium policy is a combination of property, personal and structural, and liability coverage. The policy needs to be individually tailored to provide coverage for the structural portion of the condominium that you own, as well as any improvements you might have made. The Master Policy provided by the condo board/association covers the common areas such as the roof, basement, exterior of the building and some of the structure. To adequately insure your unit, it is important that you know where the Master policy leaves off and your responsibility stops. The condo association by-laws should have this information or you can contact the Association management or the insurance provider for the Master policy. The following is a basic outline of the Condominium, HO-6, policy and the endorsements most commonly added.

COVERAGE (A) DWELLING

The Dwelling coverage on a condo policy is also known as Betterments and Improvements. This amount of insurance should be adequate to cover the structural portion of the inside of your unit that you are responsible for plus the master policy deductible. The MASTER POLICY would give you this information. This amount should also include any permanently attached items that have improved the condo. For instance, if you installed a better grade of rug than the master policy covers, you are responsible for the difference. Window and wall treatments typically are under this coverage. You might also be responsible for the improvements of a previous owner. Should a loss occur that is partially or totally covered by the master policy, they will have a deductible to apply before covering the loss. In many condo units this is made the responsibility of the unit owner. Your dwelling amount would need to cover this also.

Please note typically this coverage covers the same listed perils as personal property. Unless endorsed it is not what is considered "all risk" like a HO-3 Homeowner policy. It also is very likely Actual Cash Value coverage rather than replacement cost. This coverage’s would need to be added if available from the company.

COVERAGE (C) PERSONAL PROPERTY

Coverage C provides worldwide coverage for personal property of the insured. Special limits apply to some types of property, and some property is excluded from coverage. The overall limit is set by the insured. Coverage C can be modified in several ways with endorsements.

COVERAGE (D) LOSS OF USE

This coverage applies in the event of a loss under coverage A. If the insured temporarily loses use of the dwelling this coverage would apply. Payment would be made for additional expenses incurred to live elsewhere following a loss that makes the condo unsuitable for living.

SECTION II - Liability Coverage for Personal Loss Exposures

COVERAGE (E) PERSONAL LIABILITY

The insuring agreement under Coverage E provides liability coverage if a claim is made or suit is brought against an insured because of bodily injury or property damage. Coverage is provided for residence premise. Liability coverage is provided for the named insured and members of the insured household who are relatives. Personal liability has a basic limit of $100,000 per occurrence, which may be increased for an additional premium. In addition to the basic limit, Coverage E also provides additional coverage for expenses such as defense cost, expenses incurred providing first aid to others and damage to property of others. The additional coverage provided under section E is subject to limitations and certain conditions.

COVERAGE (F) MEDICAL PAYMENTS

This coverage will pay the necessary medical expenses for bodily injury of others. Coverage applies to accidents that occur on the insured's premise or any other location when caused by an action of the insured. The coverage has a basic limit of $1,000 per person. The insured may select higher limits.

LOSS ASSESSMENT

This coverage would reimburse you for your share of an assessment charged to all unit owners as a result of a covered loss. Typically $1,000 is provided. If your master policy has a high deductible or recommends a higher amount you can increase this amount.

ENDORSEMENTS

SCHEDULED PROPERTY or VALUABLE ITEMS

The scheduled personal property endorsement is used to provide coverage for risk of direct loss for such items as jewelry, furs, cameras, musical instruments, silverware, golfers equipment, fine arts, postage stamps and rare coins. Scheduled property can be insured for any amount the insured requires. An appraisal or sales receipt is needed to activate this coverage.

PERSONAL PROPERTY REPLACEMENT COST

Property loss settlements under the homeowner policy are made on an actual cash value basis. When the replacement cost endorsement is added the loss settlement payment would be sufficient to replace the item for the cost at the time of loss without deductions for depreciation.

IN HOME BUSINESS

Many people have an office in their homes, some as additional workspace away from their office others as their primary work location. The unendorsed homeowners policy provides only $2,500 for equipment used for business on your property and $500 off. If your computer has a couple of work related programs on it, then it would be subject to this limit. If you have clients come to your home, a lawsuit due to injury might not be covered. Talk to us to find out what endorsements we can put on the policy to avoid these coverage gaps.

UMBRELLA/EXCESS LIABILITY

Your homeowner/Condo/Tenant policy provides liability coverage, typically between $300,000 and $500,000. Your Auto policy also has liability coverage of various levels. If you are sued for a loss occurring on your property or an auto accident where you injured someone, there is a good chance these limits will not be enough to cover the settlement the judge or jury orders you to pay. You are then required to pay these amounts from your savings, by selling your house and other property or by having up to 20 years of future earnings earmarked for that payment.

An Umbrella or Excess Liability policy provides a $1,000,000 of coverage for Bodily Injury and Property Damage over the amount provided by your primary policies. If you own a vacation home, dog, swimming pool, boat, waterfront property or have assets you want to protect, you definitely should consider having this coverage. Costs vary depending on the limits of your auto and how many you insure, the size of your boat as well as other considerations. We would be happy to give you a quote. To activate a policy a signed application is needed.

EARTHQUAKE

Earthquake and Flood are always excluded coverage on a homeowner/condominium or tenant policy. Earthquake coverage can be added as an endorsement. The coverage will have a 5% deductible applied separately to both the dwelling and contents portion of your policy. Coverage for a brick or partial brick unit would be costlier as the damage caused by an earthquake would be more extensive. Earthquake coverage will not cover damage directly or indirectly caused by a flood due to an earthquake.