oday we will talk about HO6 policies. If you own a condo unit, did you know that your “master condo policy” only covers your unit from the concrete outward? It will not cover any plumbing, electrical, drywall, flooring, cabinets, personal property, etc…. So if the building needs to be rebuilt, you basically will be left with a shell. Also, if someone slips and falls in your unit, you can be held liable for any damages. Your “master condo policy” will not cover that.
These are the some of the coverage’s provided in a HO6 policy:
Insures your items of real property, including building additions and alterations, installations or additions which are part of your unit and are your insurance responsibility according to the governing rules of the condominium association*.
This condo insurance coverage protects personal property in your home like clothes or furniture. It also provides protection for your personal property with you while away from home in many places throughout the world.
Loss of Use
Should a fire, explosion, tornado or other insured loss severely damage your unit, you could need a substitute place to stay. Loss of Use coverage will cover the necessary increase in cost to maintain your standard of living. The amount of coverage is either a dollar value or may be limited to your actual costs for up to a specified time. You should review your limit with your agent.
This valuable condo insurance coverage is uniquely designed for owners in condominiums/ associations. It recognizes the potential for owners to be assessed for certain kinds of loss. Here are examples of circumstances that might require the condominium association to assess all unit owners:
•Someone is seriously injured on common property (perhaps at a swimming pool) and the courts award a judgment that’s higher than the amount of liability coverage provided by the condominium/association policy.
•Major damage occurs to commonly owned buildings and it is not fully covered by insurance.
In either case (and other similar cases), loss assessment coverage would pay your share (up to stated amount). You should review the need for this coverage with your agent and buy an appropriate amount of coverage.
Personal liability coverage protects you if others make a claim or bring suit against you for bodily injury or property damage for which you or a member of your family are responsible, either in your home or elsewhere and to which coverage applies.
In addition to settlement costs, this coverage may pay defense costs and court costs — even if a suit brought against you is groundless.
It is essential that you select liability limits high enough to protect your assets.
If you need more protection than your regular policy limits, consider a personal liability umbrella policy. It adds an extra layer of personal liability protection to your car policy, your boat policy (if you have one) and your condominium unit owners (homeowners) policy.
Medical Payments to Others
This coverage pays medical expenses up to the limits in the policy for people who are on your premises with your permission and accidentally injured. The coverage also extends to people accidentally injured by your activities. However, the coverage does not pay for medical expenses for you or members of your family that live with you.
The newest addition to these coverage’s from the above list is the loss assessment coverage. This is a great new addition to the coverage’s because as stated above, it can cover you for an assessments the association makes to your unit up to the policy amount, which in the state of Florida is $2,000.
HO6 policies are very inexpensive and with the increase in theft, personal law suits and assessments the associations are making on unit owners, its a must to have this insurance coverage.
If you own a condo unit give us a call for a free no obligation quote!