Every condo homeowner needs a 'condominium owners' policy. This policy covers what the insurance agents call 'things and betterments,' which are improvements to the original finishing specifications, among other things. Coverage can include third-party liability, alternate accommodation, and other expenses in the face of, say, a fire. And very importantly, this policy can cover the increased deductibles that the condominium common property insurance requires condo owners to pay, which can be up to $50,000.
Example: A homeowner is responsible for damage to other units that originates from their unit. Suppose a pipe breaks in the condo owner's unit, and there is water damage to another unit or units. The condominium corporation might have to repair the damaged other units, but they will be looking to the homeowner for the deductible.
We advise clients to consult with their insurance agent and get a solid condominium owners policy.
Reinforce that advice for your clients.
Cheers,
Barry
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