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What to Expect during Your Condominium Coverage Checkup

Due to the fact that condominium coverage must be properly coordinated with the condominium association’s master policy, making sure that you have the proper amount of insurance on your condo is often much more difficult than run-of-the-mill coverage on a single-family dwelling. In order to avoid catastrophe, you should do a routine periodic condominium coverage checkup with your insurance agent.

At this time your agent will look for ways to ensure that you avoid any substantial coverage gaps and improve your coverage protection where needed. Here are some key points about what to expect during your condominium coverage checkup:

* Before visiting your insurance agent, ask your condo association for a copy of the declaration document that indicates the coverage you (the unit-owner) should be insuring yourself.

* You should help your insurance agent evaluate the appropriate property insurance limit for your specific condo. If you’ve done remodeling work, for example, then your unit-owner policy dwelling limits may not be sufficient and any damage incurred to your updates wouldn’t be covered under your master policy.

* The chance of assessments (from the association to you) in order to reimburse any deductibles the association incurs from a loss covered by the master policy is also an important consideration. This is a situation that can be very problematic for you if the assessment is from high property deductibles within the condo association’s master policy. The amount of the deductible can be found in the declaration document mentioned above. Most policies usually provide a limited amount of coverage for the assessment. If this is your case and there’s a possibility that you’ll be assessed over the assessment coverage limit, then you can probably increase that amount of coverage for your assessment.

* Your insurance agent will look for coverage gaps in the perils covered under your unit-owner policy and help you decide if the perils should be expanded.

* One last important element to review under your unit-owner policy is your personal property or content limit. Inform your agent of all big-ticket purchases that you’ve made since your last review, as your limit may need to be increased to provide adequate coverage.