Having the proper insurance coverage is extremely important no matter where you live, but especially living in a condominium community.  All owners need to instruct their insurance agents to obtain HO-6 insurance coverage for them.  This coverage is specifically for condominium owners.

INSURANCE

A condo owners policy, also known as an HO-6 insurance policy, condo insurance protects condo units while also providing both personal liability coverage and living expense coverage if a condo becomes uninhabitable. HO-6 policies are also called walls-in coverage because they protect your individual unit, while your condo association’s master policy covers the building’s common areas.

However, standard condo insurance doesn’t apply in certain situations, such as floods. You may want to consider additional policies depending upon where your condo is located and how much time you spend there.

Typically, all common areas in a condominium building are covered under a “master insurance policy” purchased by the condo association or homeowners association (HOA) unless stated otherwise by the bylaws. This includes not only the building’s roof and exterior but also internal areas such as elevators and hallways.

The cost of the master policy is shared by all unit owners, usually in the form of recurring condo or HOA fees. A typical condo insurance policy provides coverage for the following categories:

• Building property: the unit itself, including walls and fixtures
• Personal property: furniture, electronics and other movable goods
• Personal liability: legal expenses from claims or lawsuits against you
• Loss of use: costs of lodging/transport if unit is uninhabitable
• Loss assessment: your portion of any losses shared out by the association (this can be increased by calling your agent for a very minimal cost, few dollars per year)

Deductible for Pheasant Run is $10,000 with a 1% wind/hail deductible. This means if cause of loss is fire, lightning, etc. the deductible would be $10,000. If the claim was wind or hail related the deductible would be 1% of the total coverage for the damaged buildings (i.e., $300,000 building was damaged, deductible would be $3,000, if all buildings were damaged it would be $189,530.37, 1% of the total insured value of all buildings at $18,953,037. Deductibles would fall under the loss assessment coverage to help each owner with their portion of the deductible.