PROPERTY INSURANCE

Property Insurance insures against physical loss or damage by fire or other risks to buildings or other common area improvements. The amount of insurance should equal the actual replacement cost of the buildings. Boards and managers should discuss this with the association's insurance broker. Look for the following coverage:

Building Ordinance endorsement covers any increased costs of construction following a covered loss which may be imposed due to changes building codes or ordinances.

Demolition and Debris Removal endorsement covers demolition and debris removal costs.

Maintenance Fees Receivable coverage covers the loss from unpaid or uncollected assessments resulting from a covered property loss.

Boiler and Machinery insurance for the loss or damage to or as a result of boilers, pressure vessels and pressure pipes. It also provides coverage for mechanical breakdown of items such as elevators, sump pumps and pool equipment.

Earthquake and Flood insurance covers earthquake or flood damage.

For insurance brokers who specialize in homeowner associations, see our Service Directory

Updated by ADAMS KESSLER 9/30/2008