Comments on: Condo Hazard Insurance

By: ram

ram — Fri, 13 Jun 2008 17:41:51 +0000

Hello, thanks for the info
Last year the water heater broke on my condo upstairs and had damages to both my unit and my downstairs neighbour unit. My condo owner isnurance company had apid for my neighbour’s loss but did not pay for my loss citing my HOA insurance coverage.
The loss on my unit is $4700 and since HOA insuarnce is deductible is $5000, my HOA is frocing me to pay for the loss.
Is this valid?? Please comment

By: Kim W

Kim W — Tue, 18 Dec 2007 17:46:41 +0000

A master policy covers exterior walls and up to the inteior of the bare sheet rock and drywall of the unit’s building and common areas as named within the policy. After that, You will need to cover from the plaster and paint outward. A condo owner will want a Unit Owner’s policy commonly referred to in insurace as HO6 policy. Any other type of form policy DP or other assigned number is not specifically taking care of the unit in its “Special Form” and may exclude critical coverage. Make sure on the Unit’s Owner policy you have Special Coverage A that insured for specific losses, Icnreased Loss Assessment to the max which helps get reimbursement money back for Assessments from Associations due to a covered claim that occurred to the common areas or your own building (as if it damaged your unit but it damaged other areas and the claim would be considered covered) as it is the cheapest thing you can buy, and the cost of a $500 to $1,00 All Other Perils (AOP) deductible is usually average $30/ year difference (it takes 16.67 years to save $500 deductible difference if you set asside $30 per year).

Hopefully this better explained the intent of the article. The average Florida Condo rebuild is $42/sq ft and can scale as high as $85 / sq ft. The difference between formica coutnertops vs. granit coutner tops to example the reason for such a wide range difference.

So if the building goes away, who will pay to recover your nailed-in, glued-in, or soemhow attched to the walls, celings, and floors (formerly known as additions and alterations)? Look at your Codno agreement, it usually says your first responsibility is to help recover the unit. Why Unit Coverage is critical to lessen out of pocket costs.

By: ben

ben — Thu, 15 Mar 2007 07:09:05 +0000

very helpful blog it is.i really like its contain specially the points on Hazard Insurance. I recommended your blog for debtcc blog hunt.

By: ARDELL

ARDELL — Sun, 23 Apr 2006 16:25:40 +0000

Unless no one else has closed on a sale there in the last six months, who had a loan to process, this doesn’t seem possible. It looks very important for you to wade through this mess very quickly, but I would need a lot more detail to be of assistance. Hopefully you are talking about somewhere in the U.S.

Email me off blog at Ardell@SoundRealty.Biz and give me your phone number so we can move quickly. Or call me.

An HOA generally has one policy, called a Master Policy. If there is a second one, it is usually with an Earthquake carrier. So the terms you have used “main and condo” don’t fit the normal terminology and I can’t decipher the situation from the information given so far.

By: Victoria

Victoria — Sun, 23 Apr 2006 04:34:49 +0000

My loan won’t close since my HOA does not have an adequate coverage. I talked to the insurance company and asked what I could do and they never mentioned supplemental insurance. She stated there is a Main Policy (HOA) and a Condo Policy. I can purchase a Condo Policy, however, the Condo Policy will never take place since the Main Policy does not adequately cover the frame building.
Is the supplemental insurance different? Will it cover the frame building and the inside in the case an unfortunate event?

By: Dustin

Dustin — Sun, 22 Jan 2006 19:06:45 +0000

Great advice Ardell…

You just caused me to go review our policy!