You should purchase a Condominium Unit Owners Policy (also known as an HO-6 policy).
This policy will essentially cover your personal belongings; furniture, clothing, fine arts, jewelry, etc. Any items of particular value over $2,000 should be appraised and scheduled onto your policy for the specified value. This coverage should be based on an all risk, “replacement cost basis”. This would replace your contents, if totally or partially destroyed by a covered loss, with new items, of like kind and quality, without depreciation. This would be subject to whatever deductible you choose. Sewer back up coverage should be requested for your personal contents and belongings. The Association provides this coverage for damage to the buildings, but not the contents of the unit owners.
This subject is covered in detail in the Resident Handbook, and periodically in our Newsletter.
Homeowners and residents
need their own homeowners insurance policy to cover
their own liability within their unit, and to cover any
upgrades and possessions.
In case of a loss, the
Association's insurance policy may cover rebuilding the
unit with basic sheetrock, builder's grade floor covering
and builder's grade appliances. There
is a $5,000 (formerly $2500) deductible that typically must be covered by the homeowner.
The Association's policy does not cover any of your upgrades, furniture and belongings.
If your unit is
uninhabitable after a loss, please further note that the
Association's policy does not cover "loss of use."
Also, consider a Personal Umbrella policy.
A building limit (or Coverage A under the HO-6 policy) of at least $5,000 should be purchased. Some of the units, either when originally purchased, or since that time, have added upgrades; better carpeting or padding, different kitchen cabinets, fireplaces, wood floor, upgraded painting, etc. The additional costs of these upgrades are your responsibility.
These would be covered under the “Additions & Alterations” section of the HO-6 Policy for the additional cost of any upgrades in the unit. We also strongly recommend that the HO-32 endorsement, or similar endorsement, be added to the policy. This will broaden coverage for Additions and Alterations to Special Causes of Loss versus named perils.
Also included in the HO-6 policy is personal liability of the Unit Owner(s). This covers the individual's personal liability arising out of the ownership of the unit. Additional coverages that should be considered under your policy are; loss assessment, coverage for a liability assessment if levied onto the unit owners by the association. Extra expense and loss of use, if your unit becomes uninhabitable by a covered loss, your additional cost to relocate temporarily would be covered under your HO-6 policy. Coverages should be discussed with your personal Insurance Agent to tailor your coverages to your specific needs.
Unit owners that lease out their units should purchase a fire policy that would cover their unit’s upgrades, any contents furnished in the unit, along with scheduling the personal liability arising out of the ownership of the unit onto your primary homeowners policy. Additional coverages to be considered are loss of rents, if the unit becomes uninhabitable due to a covered loss, the loss of rents could be covered under this policy. Loss assessment is another important consideration.
The unit owner should require that the tenant’s purchase a “Tenants Policy” (also known as an HO-4 policy). This would provide coverage on their personal belongings, contents, personal liability, and loss of use. The unit owner should ask to be named as landlord on the tenant’s policy.
This brief description does not contain, extend, modify or explain all the clauses, conditions, exclusions, or amounts of coverage under the Association's policies. It only reflects basic coverage in force at the time of writing. Please refer to the individual policies on file with the association for specific coverage.