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Is Your HO-6 Coverage Keeping Up?
Many condo and townhome owners assume their homeowners association's master insurance policy covers everything inside their unit. Unfortunately, that is not always the case.
Association insurance policies can vary significantly. Some may provide extensive interior coverage, while others cover only the building structure and common areas. In certain cases, the unit owner is responsible for everything from the drywall inward. That's why it's important to review your HO-6 (condo unit owners) policy regularly and make sure your coverage is aligned with your responsibilities.
Key Areas to Review
Dwelling Coverage
Your dwelling limit should be sufficient to repair or replace the portions of the unit you are responsible for. Depending on your association's bylaws, you may need coverage for walls, flooring, cabinetry, countertops, fixtures, and other interior finishes.
Personal Property Coverage
Take time to consider the value of your furniture, clothing, electronics, and other belongings. Replacement costs have increased in recent years, and many homeowners are surprised by how much it would cost to replace everything after a loss.
Loss Assessment Coverage
If your association experiences a covered loss and the master policy limits are exceeded, unit owners may be assessed a portion of the cost. Loss Assessment coverage can help protect you from unexpected expenses that could amount to thousands of dollars.
Water Backup Coverage
Damage caused by water backing up through drains or sump systems may not be covered by your association's policy. Adding Water Backup coverage to your HO-6 policy can provide valuable protection against a loss that many owners don't realize they may be responsible for.
Review Your Association Documents
Your association's bylaws and insurance requirements play an important role in determining the coverage you need. Because every association is different, reviewing these documents with your insurance agent can help ensure there are no gaps in protection.
A quick coverage review today can help prevent costly surprises tomorrow. If you own a condo or townhome, contact our office to make sure your HO-6 policy is keeping pace with your responsibilities.
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