Do I Need to Make an Accident Report?

The first few moments following an auto accident can be an extremely confusing, emotional, and frightening time. As such, it may be difficult to know what accidents need to be reported and what your insurance may require.

There are some types of accidents that will always need a response from one of the local law enforcement departments, such as Highway Patrol, Police, or Sheriff. Each law enforcement department will have a jurisdiction, meaning that which department responds and takes the report will depend on where the accident occurred. For example, an accident within the city limits will most always be handled by the Police. Regardless of the responding department, you should always make a report when an auto accident involves elements like an injured person, severe damage to any vehicle, and/or a driver flees the scene of the accident.

Your insurance company may also require you stay on the scene and report the accident, even in cases where the other driver flees the scene of the accident. Some insurers will accept a counter report. A counter report may be provided by the responding officer for you to fill out, or you might need to go to the nearest station to complete the form off scene. Counter reports are fairly commonplace in larger jurisdictions when the responding officer sees that the vehicles involved are still in working order and no one is injured. In any event, just make sure to remember to get a copy of the counter report for your insurance carrier.

Even if the accident doesn’t involve one of the above elements, there are certain situations where it can be very helpful to have a law enforcement response and accident report. For example, the other driver might admit blame and offer you cash for your damages, but refuse to give you his/her insurance information or contact information. Even if the other driver does offer you his personal contact information in such a situation, you still have no way of knowing if the information being provided is factual. Another example would be you forgetting to collect all the important information and crucial details of the accident because you’re stressed or confused from the accident.

Making a police report can be very helpful in any of these situations since it will involve the law enforcement officer collecting/verifying the driver’s name, address, phone number, car tag, insurance information, accident details, injury details, and so forth. Basically, most any detail that would be needed in court or by the insurance adjuster will be documented in the police report.

Lastly, even though a police report will be necessary or needed for many accidents, you should still always try to remember to write down all the information yourself. Depending on the jurisdiction, it can often take weeks to months for the insurance adjuster to request and obtain a copy of the accident report. On the other hand, the adjuster can initiate the investigation immediately when you’re able to provide the insurance information on the other driver(s).

Four Rules of Thumb to Follow When Purchasing an Auto Insurance Policy

There probably aren’t very many, if any, drivers that look forward to buying auto insurance. If you’re like most people, you feel that you have an overwhelming task when it comes to sifting through dozens of companies and agents to find the ideal insurer for your vehicle and unique financial situation. The process can leave you feeling unrewarded and irritated as you think about writing a check for a policy that you hope you’ll never need to use.

On the other hand, you know that having auto insurance is a necessity that can be the difference between a financial catastrophe and enduring a minor inconvenience if you were to have an auto accident.  Furthermore, there are steps you can take that make the act of buying insurance less painful and complicated.

The following four rules of thumb can help you drastically simplify the process, while still getting the best auto insurance policy for your needs:

1. Don’t forget to consider the size and type of vehicle you drive when you choose your limits.

Insurers will not sell you a policy that is less than the minimum requirements for your state. However, that doesn’t mean that you should mistakenly opt for auto insurance limits based on the minimum amount required. Depending on the size and type of vehicle you drive, the bare minimum may not be enough to fully cover you if you should have an auto accident. For example, let’s say that you’ve selected the $10,000 minimum property damage amount set by your state, you drive an SUV or large truck, and you hit and cause $22,000 in damage to a brand new Mercedes. Since you’re only covered for $10,000, you will pay the remaining $12,000 out of your pocket.

2. Be forthcoming and honest with insurers.

Even if you think it won’t be favorable on your premiums, it’s extremely important for you to just tell it like it is when you’re asked about your driving history. You can choose to be less than truthful regarding your moving violations and auto accidents, but you won’t be given an accurate quote. This wastes both your time and the insurers, as all insurers will check your driving record themselves and make adjustments to the quote based on your actual driving record. Be honest from the start and you will save time by getting accurate quotes that you’ll be able to compare side-by-side.

3. Look at the whole picture.

It’s tempting to opt for the insurer offering the lowest rate, but cheapest isn’t always the best deal. Know exactly what you’re getting for your insurance dollars and pay careful attention to the fine print in the contract. Unusually low rates have a catch. Would you rather pay low rates with an insurer offering substandard service, or slightly higher rates with an insurer offering an attractive package and reliable 24/7 customer service? Are options on repairs and parts an important option to have? Is it price or convenience that’s at the top of your priorities? These are questions only you can answer in choosing your insurer.

4. Don’t waste insurance dollars on duplicate coverage.

Look at all your auto coverages and ensure options aren’t being paid for twice. For example, AAA members most likely have their towing costs already covered and wouldn’t need a policy with roadside assistance.

Finding the best auto insurance policy isn’t always fun or easy. However, by following a few rules of thumb during the selection process, you can certainly save yourself a lot of money, frustration, time, and regret.

Fire Insurance Coverage: Know What You Have and Understand How it Works

The extensive and costly damage caused by California wildfires over the last couple of years should serve as a reminder on why it’s vital to both know how you should proceed after finding yourself victim to a large-scale fire, and fully understand your fire insurance coverage before you need to call upon it.

Once the immediate danger of a fire is over, you will need to assess the situation and the resulting ramifications. If you find that the disaster has created large-scale destruction, then just the number of people impacted and the vastness of the destruction itself will most likely impact the cost and tempo of your rebuild. For example, available building materials will be depleted quickly and additional materials will be in high demand. Likewise, contractors will be available in limited numbers and be in high demand. The result – premium prices for supplies and contractors.

Given the above circumstances, it’s necessary for you to insist your insurance adjuster and contractor work together and reach an agreed price for your reconstruction. You might ask both parties to meet with you simultaneously at your home during the cost estimate of the reconstruction.

In addition to knowing how to proceed after a disaster, you also need to fully understand your insurance coverage. Do you know how much of the damage your insurance would cover?

If you opted to insure your home for 100% of its estimated replacement cost when you purchased your policy, then it should pay the cost to rebuild up to that estimated replacement cost. You can add at least an additional 25% if you opted for an extended replacement cost endorsement in your policy. Furthermore, a supplemental building ordinance endorsement in your policy will cover between 10% and 100% of the cost to bring your home up to code if there have been any new or changed construction codes since it was first constructed.

You will need to make an inventory of your home’s contents that were destroyed in the fire to receive compensation from your insurer. To make the settlement process go quickly and smoothly, make sure to provide the description; total cost of replacement, including sales tax; life expectancy; and age of each item. Don’t forget to verify the replacement cost by including the retailer’s name and phone number and salesperson’s name -or- the web addresses for any prices you obtained online. The average percentage of depreciation can be figured by dividing the age of the item by its average life expectancy. You will be paid the withheld depreciation difference on your destroyed items when you replace them with comparables if your policy only covers replacement value.

Additional living expenses, such as rent or a comparable furnished living area, may also be paid under your policy. Of course, this will be minus those expenses, such as mortgage payments and utilities, not directly resulting from your home having been destroyed. Coverage is usually a maximum of 20% of your home’s insurance limit and will generally continue for 12 months or less. Even if your home isn’t damaged, your living expenses may still be covered if your home is uninhabitable by government order. This coverage will end when the government allows you to return to your home.

The right coverage can ease some of the trauma a fire disaster causes to your life. However, you must know what you have and how it works to determine if you have the right insurance coverage in place to met your needs.

The Impact of Moving Violations and Driver’s License Points on Your Insurance Premiums

Americans love to hear about point systems. After all, many involve us earning desirable rewards, discounts, and freebies. However, not all point systems are about earning something desirable.

In most states, you earn points on your driver’s license after being ticketed for moving violations like running a red light or stop sign, illegal u-turns, unsafe lane changes, and so forth. While no driver relishes the thought of paying moving violation tickets, the financial implications are actually much broader when the points accumulate. This could be in the form of higher insurance premiums or even the suspension of your driving privileges. The details of the point system vary by state. For example, some states assess points to drivers that are at fault in an auto accident. That said, most point systems will assess points one of two ways:

1. One point per basic moving violation, with two points being assessed for speeding violations that involve the driver substantially exceeding the posted speed limit. Drivers assessed either eight points over three years, six points over two years, or four points over one year will have their license suspended.

2. Two points for incidences like slightly breaking the speed limit, an illegal turn, or other minor driving violation. Drivers with more serious moving violations, such as running a red light or stop sign, will be assessed three to five points. Drivers that are assessed 12 points within a three year period will have their license suspended.

Should you get a moving violation ticket, you’ll want to look for the vehicle code violation number on the front of your ticket and contact your state department of motor vehicles. Be sure to ask the number of points, if any, the violation carries; how many points you already have; and how many points will result in a license suspension.

These points can cause your insurance premiums to increase by 20% to 30%. Most insurers will regularly review the driving records for all their customers. Depending on your insurer’s policy and state’s laws, some insurers may be able to raise your premiums for just a single point. Most insurers will allow one moving violation every couple of years before they raise your premiums, but check with your insurer to determine their specific policy.

Can I Avoid/Remove Points?

You can contest the ticket. This may be especially prudent if your points are nearly suspension levels. Keep in mind that contesting the ticket is an iffy proposition in that avoiding the point will depend on you being successful.

An option that offers more certainty in avoiding the point is paying the ticket and attending traffic school. However, some jurisdictions will not allow anyone ticketed for driving fifteen m.p.h. or more over the speed limit to attend traffic school. If you’re eligible, then you may need to attend anywhere from once a year to once every two years, depending on your jurisdiction. Some states will require a court appearance or visit to the court’s clerk to enroll in the class, while other traffic schools are completed online. Some traffic schools give you the basic information with a splash of humor to make it less boring, while others may require you to sit through eight hours of lecture and films on gruesome accidents. In any case, it shouldn’t be too big a sacrifice when you consider the alternative higher insurance premiums from the point(s) going on your record.

Driver education courses, such as a defensive driving class, can help you remove existing points from your license. The department of motor vehicles for your state can give you a listing of applicable options.

In closing, insurers typically either avoid risk or charge exorbitant premiums to take it on. Having a number of moving violations is a strong indicator that you have habits that could lead to costly accidents and claims, and would therefore be a risk to insure. Most insurers do understand that humans err occasionally, but you’ll have the best chance at keeping your rates down by avoiding traffic violations altogether.

Home Buyers: Make Securing Homeowner’s Insurance a Top Priority

At long last, your loan package has been approved, your closing date is just days away, everything you own has been packed, and all that remains is a quick call to your insurance agent to line up a homeowner’s policy. That’s when the bad dream can begin. 

Your agent may inform you that your new home is uninsurable because of a history of insurance claims filed by the previous owner. Despite home inspections and various required real estate disclosures, this could happen to you.

Securing homeowner’s insurance used to be one of the last tasks a buyer undertook before closing. In reality, it should be one of the first.

Before issuing a policy, insurers always check a property’s claims history. Water damage claims are red flags, of course, but homeowners can also set off alarms simply by inquiring about their coverage, without ever filing a claim.

Most insurance companies research past claims through a shared database called CLUE, which stands for Comprehensive Loss Underwriting Exchange. When you apply for homeowner’s insurance, the insurer will request a CLUE report to ascertain whether you or the seller have filed any claims during the past five years. Even if you currently own a home and have a squeaky-clean claims history, if you buy a house with multiple claims filed against it, you may not be able to obtain insurance coverage.

Regrettably, you cannot order a CLUE report if you are not the homeowner. However, you can ask the seller to order a copy of the report as a contingency to your offer.

If you are ever denied insurance because of past claims, you can request a free copy of your CLUE report. In the event of a dispute with your insurer, you have the right to ask that your account of the events be included in the report. If you are simply curious about your home’s history, you can order a copy from ChoicePoint, the company that manages the CLUE database.

It pays to spend the time and effort to educate yourself about homeowner’s insurance when seeking affordable coverage. Consider the following ideas: 

  • Learn the rules regarding homeowner’s insurance renewals in your state. Regulators of some states exercise   control over when an insurer can refuse to renew your coverage.
  • Pay for small losses yourself. Insurers take notice of customers submitting frequent small claims.
  • Think twice before calling your agent or insurance company. When you place a call, the insurer opens a claims file on you regardless of whether you actually file a claim.
  • Increase your deductible and consolidate insurers. To reduce your homeowner’s insurance premium, consider raising your deductible. Also, most insurers offer discounts if you insure both your car and home with them.
  • Examine your credit record. In addition to your past claims history, insurers often use your credit score to determine whether to issue you a policy.

Don’t Get Stuck Paying for Costly Storm Clean-Ups

Following a damaging fire, thunderstorm, hurricane, tornado, ice storm, or other disaster, one of your first concerns will be the structural damage your home has suffered and how to repair and restore it back to its original condition. In most cases, your homeowner’s insurance policy will pay for the labor and materials to repair your home and for you to temporarily live somewhere else while your home is uninhabitable.

But, what about the mess that the disaster has left behind? You may have anything from destroyed furniture and appliances to soaking wet insulation and lumber that must be cleaned up and disposed of somehow. Of course, this certainly isn’t an expense or a task that a homeowner wants to be worried with after a disaster. The good news is that your insurance policy may also pay for the expensive cleanup and disposal process.

A typical insurance policy will cover a reasonable expense for you to remove the debris from your property, but the damage must be caused by one of the causes of loss that your insurance policy insurers against. For example, let’s say your insurance policy covers fire and a fire has damaged your master bedroom, closet, and entry hallway. In the process, your clothes and bedroom furniture were also destroyed by a combination of fire, smoke, and water. Since your insurance policy covers fire, it will also pay for all your belongings and building materials destroyed by the fire to be removed from your property. On the other hand, do keep in mind that most typical insurance policies don’t cover losses caused by earthquakes. Depending on your insurer, this coverage may be added for an additional premium.

The cost of debris removal is included in the insurance amount covering your home, but if the amount of home damage and debris removal exceeds what your policy will pay, most policies will usually provide an additional amount for you to remove the debris.

A typical policy will also cover the cost to remove fallen trees on your property. The amount is usually up to $1,000 for multiple fallen trees and up to $500 for a single fallen tree. However, the coverage only applies with certain circumstances. Removal of fallen trees owned by you, the policyholder, are usually covered if they fell as a result of a windstorm; the weight of snow, sleet, or ice; or a hail storm. Removal of a neighbor’s tree that has fallen on your property is usually covered if it fell from fire; wind and hailstorms; vandalism; the weight of snow, sleet, or ice; and such. The fallen tree must have damaged a structure that is already covered by your policy, such as your home, fence, garage, or porch, for the coverage to pay for the removal. There are a few limited exceptions to this rule, such as if the fallen tree is blocking the driveway to the home or a handicapped person’s accesses to the residence. Otherwise, a fallen tree on your property will be your financial responsibility to remove.

Keep in mind that homeowner’s insurance policies can vary from insurer to insurer. Be sure to review your policy carefully to make certain you have the extent and amount of coverage you need. Don’t forget to confirm that you have enough insurance to cover both repairs and removal. If any of the provisions in your policy aren’t perfectly clear to you, then you should ask your insurance agent to thoroughly explain it. If your agent can’t explain your policy to your understanding, then it might be time to look elsewhere for coverage.

Should Your Collision Coverage be Dropped?

If you are like most new car owners, then you probably paid the extra money to include the protection offered by collision coverage in your insurance policy. However, as your vehicle has now begun to age and depreciate, you’ve likely started to ponder if and when you should drop the pricey collision coverage that’s running up your insurance bill.

There’s not a one-size-fits-all answer to this question. After all, everyone won’t have the same comfort level on risk or the same insurance needs and wants. However, there are some factors that you can consider to help you determine if and when you should drop your collision coverage:

1. Determine the value of your vehicle.

The first thing you should do when deciding if you should drop your collision insurance is determine approximately how much your car is worth. There are several ways to go about this, but one of the best methods is by getting an actual cash value (ACV) estimate. Kelley Blue Book and N.A.D.A. guides are excellent sources. However, you might want to call your insurance agent to find out which ACV source is used by their claims department, as ACV figures will often vary slightly from source to source. Do remember to factor in the wear and tear on your vehicle. Dents, scratches, upholstery holes or tears, and fading or chipping paint are just a few of the factors that can lower your vehicle’s ACV.

2. Weigh your potential risk against the cost of your collision coverage.

Although your collision coverage premiums will generally decrease slightly as your vehicle ages, you still need to make sure that the cost of your collision coverage remains a worthy expense to cover damage that may or may not occur to your vehicle. Weigh what you’re paying every year for collision coverage against the potential risk of not having it. The ACV of your vehicle should also be a factor in your decision process. For example, the new car you bought several years ago may only be worth $3,000 dollars today, and if you’re paying $600 per year for your collision coverage, then you’re paying 20% of what your car is worth for just this one coverage.

3. What’s your deductible?

Your deductible is another important factor to consider. Most drivers usually select a collision coverage deductible between $250 and $1,000 dollars. You might have even selected a higher deductible to keep your premiums lower. In any case, you need to remember that your deductible is the amount of money you’ve agreed to pay out-of-pocket before your insurance coverage takes effect. You need to decide if the combination of your collision coverage premiums and the deductible amount you’d pay after an accident are still reasonable costs for the value of your vehicle. For example, you’d be looking at a $1,600 out-of-pocket cost for the year for your damaged vehicle if you have a $1,000 deductible and you’re paying $600 for your annual collision premiums. If your vehicle’s value is anywhere close to what you’d pay out-of-pocket, then you can see where you’re likely wasting your insurance dollars. On the other hand, if your vehicle would cost a great deal more to replace or repair than what you pay out-of-pocket with your collision coverage, then it’s likely worth the expense.

4. Can you live without the perks of your collision coverage policy?

You’ll need to decide how valuable the perks of your collision coverage policy are to you. For example, your collision coverage policy might offer a free rental following an accident. Without the collision coverage providing this, could you rent a car on your own or find alternative transportation?

The bottom line is that there’s no cut-and-dried answer about dropping your collision insurance. Consider the above points and how they apply to your unique situation before making your decision. You can always schedule an appointment with your insurance agent if you have any doubts, concerns, or questions during your decision process.

The CLUE Report: Don’t Be Left Clueless on Insuring Your New Home

If you don’t properly educate yourself on the home buying process, it can very well be like walking into a minefield. Most buyers at least have a novice understanding on areas like their credit, pre-approval, a home inspection, and so forth. However, most buyers don’t have a clue what a CLUE report is, much less what an important element it is when buying and insuring a new home. Considering that around 90% of all insurers underwriting homeowner’s insurance subscribe to the CLUE service, it’s certainly something that you should know about.

What Is CLUE?

The Comprehensive Loss Underwriting Exchange, or CLUE, is a database that allows auto and homeowner insurers to exchange information about property loss claims. Unless your state specifically requires it, prior notification isn’t required before your information goes into the system. ChoicePoint, one of the largest personal consumer data compilers in the United States, maintains the database. Property loss claims and even inquiries into coverage are entered into the CLUE database.

Your insurer can access the CLUE database when you apply for homeowner’s insurance on your new home. The system will allow them to see any past claims that previous owners filed on the house. It also allows them to see past inquiries on damages, even if there wasn’t a claim filed. You could find yourself in an insurance nightmare if a bad CLUE report causes insurers to be unwilling to provide you with coverage. Furthermore, it’s not just your new home under scrutiny. Old claims that you made on your previous home are also available through the CLUE database and can affect the cost and/or availability of homeowner’s insurance on your new home.

What Do I Do About CLUE?

The best thing you can do to keep CLUE from affecting the cost of your homeowner’s insurance and/or your ability to obtain insurance is to know your rights. Just as with any other credit reports, CLUE reports fall under the Fair Credit Reporting Act, or FCRA. This means that you’re entitled to certain rights, including the following:

* Notification if the insurer intends any adverse actions, such as increasing the cost of your new policy’s premiums or denying your new policy, based on the information they obtained from your CLUE report.

* Get a copy of your insurance scores and the actual CLUE report. The FACT Act is a recent amendment to the FCRA that entitles you to one free copy of your CLUE report per year. Aside from your one free copy, you’re entitled to get another copy of your CLUE report if you’ve had your policy canceled, coverage limited, premiums increased, or an application for insurance denied.

* Dispute incomplete information or inaccuracies within the CLUE report. You can do this at the ChoicePoint website. ChoicePoint is required by law to investigate your dispute. If you aren’t satisfied with the investigation by ChoicePoint, you can file a statement. This statement must be attached to all future reports.

In summary, you can see how a CLUE report can substantially impact your home purchase. Do keep in mind that you can’t obtain a CLUE report on a home that you don’t own yet. This means that you will need to ask your real estate agent to obtain a CLUE report for any property you’re considering purchasing.

Save Money by Avoiding These Costly Insurance Mistakes

When it comes to purchasing insurance, fear is an important motivator. We are justified in our worries about protecting assets such as homes and automobiles, and we buy insurance to protect our financial integrity. Despite our best efforts, sometimes our insurance does not offer full financial protection. This is not necessarily because there is a problem with the insurance policy; it can be a result of human failure. When purchasing an insurance policy, many people fail to look at the true level of coverage that is necessary to restore assets to their pre-disaster conditions.

Below are five common insurance mistakes to avoid at all costs:

*Trying to do it all on your own – Shopping for insurance is complicated, and it is best to seek professional advice. While it is fine to use the Internet to educate yourself, you should ultimately work with an independent agent who can offer multiple options for your consideration. An agent will help you untangle the complex issues involved in purchasing the proper amount of coverage to meet your needs.

*Buying into the hype – If it sounds too good to be true, it probably is. Where insurance is concerned, you often get what you pay for. A company that promises large discounts is most likely offering less coverage.

*Slicing it too thin– In a difficult economy, many people try to cut their living expenses to the bone. While it may be prudent to cut out some of the “extras” we enjoy such as eating out and going to the movies, reducing an insurance policy is risky. If and when disaster strikes, you’ll be glad you didn’t cut back on insurance premiums, which can result in thousands of dollars of uncovered damages.

*Neglecting regular protection reviews – Consider how much your life can change in a short amount of time. For instance, has the value of your home gone up or down in the last few years? Has a new car been purchased or has a teenager just gotten their driver’s license? Has an adult child finished their higher education? These are just a few of the changes that can cause either an overlap or gap in your insurance protection.

*Restricting your options – There are quite a few insurance companies that advertise a “one size fits all” approach to insurance. In some cases, these companies do not have your best interests at heart. It is best to consider multiple options, rather than limiting yourself to one choice.

Five Things You Should Know about Your Condo Association’s Insurance

A condominium unit-owner usually has her own insurance policy that covers her for loss of her personal belongings, parts of the building that the condominium agreement makes her responsible for insuring, the additional cost of living elsewhere after a fire damages her unit, and her legal liability for injuries or damages suffered by others. In turn, the condominium association has its own policy, which may cause some unit-owners to wonder why they have to buy separate insurance. Doesn’t the association’s insurance cover the same things that her policy does? Depending on the property at issue, the answer is maybe yes and maybe no. Insurance companies designed the two types of policies to complement each other in some cases and to overlap in others. Here are five things unit-owners should know about their associations’ insurance.

The association’s policy covers the building. Depending on the wording in the contract between the association and the unit-owner, the word “building” may mean several different things. If the contract requires the association to insure them, “building” can include fixtures, improvements and alterations that are part of the building and that are within a unit. For example, if a unit-owner installs new track lighting or an attached island in the kitchen, the association’s insurance would cover the cost of repairing or replacing them after a loss. Also if the contract requires, the association’s insurance will cover various appliances such as refrigerators, stoves and dishwashers.

The association’s policy covers personal property “owned indivisibly by all unit-owners.” Furniture in the building’s lobby, hand carts and other moving devices, and exercise equipment in an exercise room available to all residents are examples of the types of property that the association’s policy insures.

The association’s policy does not cover the unit-owner’s personal property. A unit-owner must buy her own insurance to cover her furniture, electronics, clothing and other belongings. Assume, for example, that the condominium contract requires the association to insure appliances. If fire damages a unit-owner’s space, the association’s insurance will cover the refrigerator but not the sofa. The unit-owner’s policy will cover the sofa. The association’s policy also does not cover an individual unit-owner’s legal liability for injuries or damages suffered by others. The unit-owner needs her own insurance to provide for her legal defense and to pay any judgments.

It is possible that both policies may apply to the same item of property. In the above example, both the association’s and unit-owner’s policies may cover the refrigerator. In that situation, the association’s policy will apply first; if it does not completely pay for the repair or replacement, the unit-owner’s policy will cover the balance. For example, if the cost of replacing the refrigerator is $5,000, and for some reason the association’s policy covers only $4,000, the unit-owner’s policy will pay the other $1,000 (the example doesn’t include deductibles that may apply.)

The association’s insurance company will not try to get its money back from a unit-owner. Suppose a unit-owner left a candle burning overnight and the unwatched candle caused a fire that damaged part of the building. Many types of insurance policies would allow the insurance company to pay its customer for the damage, then try to recover its payment from the person who caused the damage. However, a condominium association policy specifically states that the company waives its right to recover from a unit-owner. It still has the right to seek recovery from a person who is not a unit-owner and is responsible for the damage.

While comprehensive, the association’s policy is no substitute for a unit-owner’s own insurance. Unit-owners should work with professional insurance agents to ensure that they have the proper coverage.