Points to Consider when Buying Unit Owners Insurance

An important part of owning a home is to make sure that you have adequate insurance coverage. In order to help you to determine whether your coverage is sufficient, the following information is intended to clarify what the Association handles, and what you need to insure on a Condominium Owners’ Policy.

Beachwalk Homeowners Association has a “Bare Walls” policy with a $10,000 deductible. This means that the Association’s insurance policy covers your individual structure up to and including the drywall.

The following should be considered when it comes to your insurance needs:

•Personal Property coverage with replacement cost will cover your contents and possessions such as clothing, furniture, and electronics. Consider getting extra coverage for jewelry, computer equipment, art collections, and more.

•Interior Structure, Additions and Alterations need to be covered on each unit owner’s personal policy for everything inside their unit. For Example: floor, wall and ceiling coverings; cabinetry and countertops; plumbing and lighting fixtures, etc.

•Loss of Use will pay additional living expense while your home is unfit to live in due to a covered loss. If your home is rented out, this coverage will be replaced with Loss of Rents coverage.

•Loss Assessment will pay your share of a special assessment levied by the Association due to an insured loss. You may want to consider a high amount since coverage is inexpensive.

Important – In the recent past, unit owners have been exposed to Association deductibles in certain circumstances. With proper building and Loss Assessment coverage, unit owners can obtain coverage for their portion of the Association’s deductible.
Your Association’s deductible is $10,000.

•Personal Liability coverage pays for bodily injuries to other people or damage to their property, as a result of an unintentional act committed by residents of your household. This coverage is vital in protecting your assets.

•Earthquake Insurance is available for your individual unit from the California Earthquake Authority. Coverage can also address any possible “loss assessment” levied by the Association for earthquake related assessments.  Ask your personal insurance agent, or log on to www.earthquakeauthority.com.

Hopefully this article has helped you understand condominium insurance. You have a lot wrapped up in your home and should be assured that everything will be taken care of if something were to happen.

The Beachwalk Homeowners Association is covered by Farmers Insurance, through the Prendiville Insurance Agency. If you have any questions or would like to get a quote, they may be reached at (800) 482-4467.