Is Your Condo Insurance Covering You Correctly?
Many clients that we work with come to us with questions of uncertainty with their condo insurance. Often time new clients are vastly underinsured or have not been coached in what actually a condo policy covers. It is a bit tricky when purchasing a new home and deriving proper coverage. When a consumer buys a new home their lender require their insurance to cover their loan amount so the bank is protected against a total loss because it is a shared asset. Therefore, lenders often require enough insurance to cover the loan. But, with condos there are often times a master policy that the Home Owner's Association purchases that covers the exterior of the property. The personal condo policy is responsible for insuring essentially the drywall in. This list of information is important to consider when determining what that valuation is.
Elements Typically Considered in a Condo Homeowner’s Policy Valuation
Below is a list of category areas that are typically included when evaluating the interior finish cost of a condominium unit. This is not an all inclusive list, nor does it apply to every condominium policy. It is a general list of items that are typically covered by the condominium unit owner’s individual policy, and what is generally considered when estimating a value for coverage A. This is assuming a “walls in” type of policy, where an association will cover the superstructure of the building and behind the wall systems of a home.
1) Exterior Doors – The only exterior element generally included.
2) Interior Doors – Doors between rooms not opening to the outside and all hardware.
3) Interior Wall Material – Drywall, Plaster, etc. (Does not include sheathing and wall structure)
4) Interior Wall Covering – Paint, Wallpaper, Paneling, etc.
5) Ceiling Material – Drywall, Plaster, etc. (Does not include sheathing and ceiling structure)
6) Ceiling Covering – Paint, Paneling, decorative beams, coffering, etc.
7) Floor Covering – Carpet, Hardwood, Tile, etc. (Does not include sheathing and floor substructure)
8) Interior Window Treatments – Blinds, Drapes, etc. 9) Moldings – Baseboard, Window, Door, Crown, etc.
10) Kitchen: Cabinets & Islands, Countertops, Backsplashes, Appliances, Other Built-ins
11) Bathrooms: Cabinets, Countertops, Plumbing Fixtures - Tubs, sinks, toilets, faucets, etc.
12) Lighting Fixtures – Includes Recessed, Track, Chandeliers, Ceiling Fans, etc.
13) Fireplaces – Mantle & Hearth, Insert, etc. 14) Staircases
15) Other Specialty Items – Wet bars, Theater Systems, Alarm Systems, Bookcases, Shelving Systems, Wine Rooms, etc.
16) Other structures owned solely by the insured at the residence location such as storage shed or detached garage.
17) Heating and cooling systems or hot water heaters that are contained within the unit that the insured may be responsible for and are not covered by the condominium association.