What Not to Do When Buying Condo Insurance
Posted on Thu, May 05, 2011
I recently heard a representative from a direct writing insurance company speak at a Board of Realtors meeting about insuring condominiums. She recommended that condo owners insure the full value of their unit from the “studs in” in all situations. There was no mention of reviewing the condominium documents to see what the master policy is required to cover. As a result, this agent’s recommendation would have many of their clients paying for the same coverage two times, first on their own policy and second in their portion of the condo fees which are used to pay for the master policy.
If your insurance agent does not ask to see a copy of the bylaws or the Master Insurance Policy, something is wrong. The only proper way to insure a condominium is to review what the master policy covers and tailor the individual unit owner’s policy to fill gaps in the building coverage and to insure the personal property of the unit owner.