CONDO INSURANCE COVERAGES SUMMARY
Additions and Alterations
Additions and Alterations provides coverage for the inside of your unit that is part of the building, but not covered by the Master Policy. This can include your own betterments and improvements; or, in older “bare walls” policies, everything from wallpaper to interior paint and wallboard. Betterments may include custom cabinets, fixtures, alarm systems, and other permanently attached / installed improvements you have added. The broadest form of protection, known as “Open Perils“, is recommended (though it costs a little more).
This is coverage for your contents, “your stuff,” that is not a part of the building. Coverage extends worldwide, but may be subject to percentage limits (commonly 10% off-premises). Examples include your clothes, furniture, electronic equipment, and other miscellaneous personal property. “Replacement cost” coverage is always recommended as claim settlements are much better for you than “actual cash value” treatment, which deducts for depreciation based on age.
Loss Assessment protects you for your proportional interest in the condo if the insurance purchased by the Association is insufficient and you are assessed your share in either a property or liability loss. This is generally very inexpensive coverage, and is recommended on an “open perils” basis.
This provides protection if you are sued, and is automatically included under a Condo Owners Policy (HO6). It includes both defense costs and any amount you are legally liable to pay, up to the limits purchased. This insurance will not include business related activities, or suits brought by family members. The most common limit today is $500,000. We recommend you include “Personal Injury” coverage, in addition to the standard Bodily Injury and Property Damage which is provided in a personal condo insurance policy. (Some companies include this automatically, and some charge separately for this coverage. If you’re not sure, ask us.)
This is guest medical coverage. Think of it as goodwill protection, or anti-lawsuit protection. It will pay for medical expenses if a guest on your premises is hurt, regardless of your being negligent or at-fault. Thus, this benefit is payable without the injured person having to file a lawsuit against you to recover their expenses. It is paid quickly and without lengthy legal battles to minimize delays and additional legal expenses. We recommend $5,000, but many condo owners still have $1,000, even though the cost difference is only $12 to $15 per year