West Hollywood Condominium Insurance
Condominium and townhome homeowners insurance rates are typically much lower than the insurance rates charged for a standard single family dwelling. Ths is because the Condominium Homeowners Association has a Master Policy which insures the damage to the building itself as well as the outdoor and common areas.
When you purchse a condominium or townhome you are purchasing a unit within a building. This policy is referred to as a condo unit homeowners insurance policy or form HO6. What you are responsble to insure depends on how your Association CC& R’s define ownership of the unit.
All In: This means the master policy insures the interior and exterior surfaces of your unit and you only need to worry about insuring what you actually own (clothing, furniture, applicances not permnently attached, etc.) Any fixtures that are permanently attached to the walls such as cabinetry, toilets, sinks, or dishwashers would fall under the Condo Association Master Policy. Any permanent improvements you make can fall into a gray area. These are referred to as Unit Owners Additions and Alterations done at your own expense and intended to remain in the unit should you sell it at a later date.
Bare Walls In: Simply put this means that everything inside of your units four walls would need insurance. This will be covered under your personal property insurance limit or can be broken out into “dwelling” coverage depending on the insurer providing the coverage and their policy form.
Included in the property insurance section of the policy will be coverage for Additional Living Expense or Loss of Use insurance. This pays you to move to a temporary location while repairs are being done to your unit that resulted from a covered claim.
One thing peculiar to the ownership of the condominium or townhome is Loss Assessments insurance. If a loss occurs that is covered by the Master Policy the insurer of that policy may have inadequate limits to settle the claim and/or pay the damages or the Master Policy might have an exclusion for the damage such as loss caused by earthquake. All unit owners will be assesed their fair share of the cost of the repairs. Loss Assessments coverage can be included in your policy but will generally have a very low limit as low as $1,000. Talk to your agent at EZ Center Insurance Services and review the cost to increase this limit. The cost per additional $1,000 is nominal.
All Section One Property insurance coverages will be subject to a deductible that applies per claim.
Section Two of your policy provides protection against liability claims you incur as a result of the ownerhsip of your unit. The personal liability coverage within your homeowners’ policy provides coverage for bodily injury and property damage sustained by third parties which you residents legally liability for. Your deductible does not apply to this coverage which is known as “first dollar” insurance.
Owning a piece of the American Dream is a great feeling. It does not matter if this is your “starter home”, your forever home or you scaled down as you head into retirement. Protect what you worked so hard for with a comprehensive Condo Unit Homeowners insurance policy.