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Own a Condo, Townhouse or Co-Op |
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As a
condo, townhouse or co-op owner, you have different coverage needs than
the typical homeowner. Although you own your own living space, the building
as a whole is owned by someone else with a board or association, among
other things. You will want insurance protection for any permanent improvements
you have made including fixtures and appliances.
Understanding
the coverages available will help you make an informed decision when
shopping for a policy, and identify areas where additional protection
may be needed. To get started, select from the following:
In general,
a condo, townhouse or co-op policy offers protection in the following
areas (Hint: Follow along with
your policy to identify areas you may want to review with your agent):
- Your Home
(Coverage A) - is for your condo, townhouse
or co-op. Note: this coverage is generally limited. Refer
to your policy or see your local independent agent for further details.
- Personal
Property (Coverage C) - is for your personal property
(often referred to as your personal contents) such as clothing,
furniture and linens. There are certain exclusions and limitations
with this coverage, especially regarding items such as computers,
jewelry, and antiques. You may purchase additional coverage for
these and other items. Consult
the "Special Items" drop down on the left menu for more
information.
- Loss of
Use (Coverage D) - if your condo, townhouse or co-op
becomes uninhabitable due to a claim covered by your policy, this
coverage will pay for your additional living expenses while
you are away from your home awaiting repairs, rebuilding or even
relocating.
- Personal
Liability (Coverage E) - protects you from liability
claims made by someone injured on your property (other than a
member of your household). If a lawsuit should arise, this coverage
will also help to pay the legal fees associated with your defense.
- Medical
Payments (Coverage F) - helps to pay for the medical
bills of someone who is injured on your property (other than
a member of your household).
The
amount of protection you have in each of these areas may vary depending,
in part, on the level of coverage you selected when you purchased your
policy.
Protection
is not provided for claims caused by:
- Earthquake
- Flood
- Intentional
Loss
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Additional protection
may be purchased for Flood
and Earthquake.
See your local Independent Agent for further details.
As
a condo, townhouse or co-op owner, you may also want to consider options
for additional protection if needed.
- In addition
to the areas of protection that your individual insurance policy
can provide, you will need to protect your interest in your building's
shared areas and machinery (hallways, roof, boiler, etc.).
This coverage is typically provided through the board or association
under a "Master Policy." Ask your association for details
on the master policy, or consult the insurance agency that handles
the policy.
- There are two
ways to insure your home and personal belongings: actual cash value
or replacement cost. If your belongings are insured for "actual
cash value" you would receive replacement cost or market
value of an item minus depreciation in the event of a claim.
(Ex: If your television was stolen and it originally cost $600
five years ago, you may receive only a small portion of the $600
as the value of the television has declined over the five years
due to basic wear and tear.) A "replacement cost" policy,
on the other hand, would provide coverage in an amount sufficient
to replace the item(s) at current prices.
- Typically a
policy does not provide protection or limits the amount of protection
for certain items such as computers, jewelry, furs, and antiques.
You may want to broaden your policy with additional coverage for
these items. Consult the Special Items drop down on the left menu
for more information.
- Coverages may
also be subject to a deductible as stated in the policy. Hint:
Increasing your deductible generally reduces your insurance premium.
