What happens in the event of a loss?
Condominium insurance claims can often become complicated situations and difficult to understand. What is covered, and who is responsible for what?
The Master Policy
All condominium associations maintain a master insurance policy. These policies include liability, replacement cost, and (usually) directors and officers coverage. The most common claim on a master policy is for real property damage. Insurable damage is caused by a sudden or catastrophic event, which is the first place people get confused. Damage from an event taking place over a long period of time, like a slow leak, is NOT covered. If your roof caves in because of snow fall, insurance becomes involved because they consider that a "sudden" and "catastrophic" event. Most master insurance policies have a deductible of $5,000; This simply means that the master policy kicks in once the insurable damage amount goes over $5,000.
HO-6 Policies and How They Affect YOU
But who pays for all the damages up to that amount? That is where your homeowners HO-6 policy comes in. This is something that EVERY condominium owner should have! These policies have a number of provisions that not only cover damage under the associations deductible, but liability within the unit, relocation, personal property, etc. If a fire in your unit causes $25,000 worth of damage and you do not have the proper HO6 policy, you could be paying that $5,000 up to the deductible out of pocket! Landlords who rent their units should also maintain adequate insurance coverage, and remind their renters about “renters insurance policies”.
Sound Off!
The insurance process can be very confusing, so if you have more questions, leave a comment below, shoot us a tweet
@MAcondoMGMT on Twitter or post on our wall on
Facebook and one of our experienced property managers would be happy to explain it further.
Condominium insurance claims can often become complicated situations and difficult to understand. What is covered, and who is responsible for what? 
But who pays for all the damages up to that amount? That is where your homeowners HO-6 policy comes in. This is something that EVERY condominium owner should have! These policies have a number of provisions that not only cover damage under the associations deductible, but liability within the unit, relocation, personal property, etc. If a fire in your unit causes $25,000 worth of damage and you do not have the proper HO6 policy, you could be paying that $5,000 up to the deductible out of pocket! Landlords who rent their units should also maintain adequate insurance coverage, and remind their renters about “renters insurance policies”.
