Condominium unit owners often wonder if it’s necessary for them to obtain ‘building’ property insurance for their unit when their unit is also covered by the condo association’s commercial insurance policy.
After all, who would want to pay more than necessary for insurance?
What many don’t realize is that unit owners obtaining their own property insurance is highly beneficial for both the owners and condo associations — and that’s why Adler’s Insurance advises unit owners to have an HO6 policy and include coverage for the building.
Here’s a look at some of the ways that unit owners benefit from increased dwelling coverage on their HO6 policy:
-
Your investment covered:
The condo association’s insurance policy (known as Master policy) will provide protection for areas belonging to the condo and may only cover damage done to areas of the property that are unchanged since the owner bought it.
As a unit owner you may have invested a lot of money in your unit. Bigger changes like finishing up a raw basement or attic; and smaller upgrades to your kitchen, bathroom tiles, or moldings do much to increase the value of the home. These may not be covered on the Master policy. When a claim happens, you want all your upgrades covered by insurance.
-
You get to choose:
Filing a claim on the master policy will increase the premium for all owners. That is why condo associations are careful with which claims they choose to file.
On the other hand, when you have your own property coverage, you are free to file any property claim that happens in your unit.
-
Payment directly to you:
Waiting for the condo association to process the money they received for the claim, and approve how much money it cost you to replace the damage — can be frustrating.
When you claim your own policy, you will get paid directly from your property insurance company — much faster.
-
Lower cost to you:
The master policy may have a deductible as high as $5,000 or $10,000, making it unprofitable to open a claim — even for a loss of $20,000.
Your own HO6 policy can have a deductible as low as $500 or $1,000. This may save you a considerable amount of money in the event of a claim.
Sufficient property coverage on your HO6 policy will raise the level of protection on your investment. You will be in charge of claims, bypass a lot of red tape, and maintain good relationships with the other unit owners.
—
Need help with finding the right insurance policy for your business? Have questions about commercial insurance plans? Adler’s Insurance is here to help!
Contact us today (845) 356-5656 and we’ll be happy to assist you.