The Basics Of A Master Condo Insurance Policy
Below are a list of some coverage’s that are available on most master condo insurance policies and a brief description of what they cover.
- Liability Coverage – This is the amount of liability coverage that a condo association or trust is insured for. Typically, this limit is a split limit of 1 million / 2 million, but, can be increased. The split limit means that the insurance company will pay out a maximum of 1 million per occurrence and a maximum of 2 million in any given policy term.
- Building Coverage – This is the coverage that is placed on the condo building. This is the maximum amount that the insurance company will pay out for any property loss to the building. For example, if your building is insured at 500K and it was to burn down, the maximum amount the insurance company would pay out, if they paid the claim, would be 500K.
- Deductible – The deductibles typically available on a master condo policy are $500, $1000, $2500, $5000, and $10000. The higher your deductible is the lower the cost of the insurance policy.
- Ordinance & Law Coverage – Ordinance & law coverage is to protect your building against changes in codes, laws and ordinances in the town or city where you live. In the event of a loss, there could be things that need to be upgraded to conform to the codes or laws of the city and having coverage for those issues is dependent on having ordinance and law coverage on the policy. Especially for older buildings, this coverage can be very important to have.
This coverage is split into three parts:
- Loss to Undamaged Portion of Building
- Demolition Cost
- Increased Cost of Construction
- Employee Dishonesty – This coverage protects the condo association from an employee or trustee from embezzling funds from the condo association. This is included on most master condo policies.
- Directors & Officers Coverage – This coverage helps to protect the trustee’s of a condo association from being sued. This is available on most policies for an additional premium.
- Flood Coverage – Flood coverage is not typically covered on a master condo policy. In most cases the condo association or trust must purchase a separate flood insurance policy to have this coverage.
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“All-In” Coverage Endorsement – This means that if there were a property loss and the entire building needed to be re-built the insurance company would re-build the inside walls and fixtures of the condo. Without this endorsement the coverage is generally subject to the bylaws set forth by each individual condo association or trust. This endorsement is only available on some policies, not all companies offer this. For more information regarding this particular endorsement please contact us directly.
To get a quote for a master condo policy click here
http://www.djgins.com/condo-master-quotes.asp
