OWNER INSURANCE

Too many condo owners mistakenly rely on the insurance carried by their associations, only to learn after a major loss that their improvements (hardwood floors, cabinets and counters) and contents (clothing, furniture, appliances) were not covered.

The association's insurance generally covers the building itself and the original interior walls. Owners must carry insurance at their own expense to insure their separate interests. Accordingly, owners should purchase the following types of insurance:

Personal Liability. Even though associations carry premises liability for the common areas to cover claims for bodily injury or property damage, it does not cover injuries or damage inside an owner's unit. Condo owners must carry their own insurance in case someone gets hurt in their condo.

Personal Property includes moveable items, such as furniture, clothes, dishes, appliances, computers, etc.

Real Property coverage is for improvements to the interior of a unit, such as hardwood floors, kitchen cabinets, plumbing and electrical fixtures, etc.

Loss of Use helps with necessary increase of living expenses if an owner cannot stay in his/her condo due to a covered loss.

Guest Medical will pay reasonable charges for medical, surgical, x-ray, dental, etc. resulting from an occurrence on your property.

Loss Assessment pays for special assessments imposed on owners because the association's own insurance was insufficient to pay for the damage.

Earthquake Loss Assessment pays for losses related to the living units in the event of an earthquake that may result in a special assessment to all unit owners equally.

Jewelry & Art usually has a maximum limit on regular condo and homeowner policies. If you have high value jewelry, art or collectables you will need a "scheduled or unscheduled floater".

Updated by ADAMS KESSLER 5/7/2008