3000 South Braeswood Condos

July 7, 2010 - Association Property Insurance

Jul 07, 2010

MOST FREQUENTLY ASKED QUESTIONS CONCERNING THE INSURANCE PROGRAM

What does the Association’s Property Insurance Program cover?

• The policy includes coverage for, but is not limited to, the exterior walls and roofs, the interior walls, paint, wallpaper, cabinets, built-in appliances, floor coverings, built-in lighting, ceiling fans and window coverings as originally constructed (meaning if the walls were originally painted, the Association’s insurance would replace the interior walls and paint them - if they were wallpapered, it would wallpaper them with like kind and quality). What the Association’s insurance would not cover is “upgrades” to original construction (meaning that if you had painted walls and you or someone before you added expensive wallpaper, you will be responsible for the upgrade) . You could cover this easily with your own personal insurance.

• The policy has a deductible that varies, depending upon the type of loss, and it ranges from $10,000.00 to 2% of our insured value. Your Association will have a policy on your responsibility for the deductible.

• Floor coverings and roofs over 12 years old are subject to depreciation.

• The Association’s insurance does not cover your personal property. An easy way to remember this is, if you normally would take it with you when you move or you have upgraded it beyond the original construction (installed $100.00 per roll wallpaper or imported marble floors), it is not covered under the Association’s policy. It is your responsibility to insure that property.

• Please note: The property insurance policy covers insurance losses and does not pay for maintenance. For example, if a pipe were to burst in your unit, it is our understanding that the repairs to the pipe are your responsibility. If this pipe break results in damage to the unit, the damage would be covered by the Association’s insurance, subject to a $10,000.00 deductible.

What other insurance does the Association have?

• Associations generally purchase several coverages, as specified in our documents, for the protection of the Association. These include General Liability insurance for the common areas, Directors & Officers Liability insurance, Worker’s Compensation insurance, Employee Dishonesty insurance, Boiler & Machinery insurance, and Umbrella Liability insurance. Some also purchase Flood insurance. Please note that if you are a Townhouse Association, the Association cannot purchase flood insurance on the buildings; only the individual unit owners can do so.

What insurance do I need to purchase individually?

Unit owners living in the unit:

    A. If you live in the unit that you own, consider purchasing at least the following protection (of course, consult with your own professional agent to be sure you are getting exactly what you need) .

      1. Homeowners Insurance (HO-CON form) covering any part of the interior of your unit that is not covered by the Association policy (the improvements and betterments), plus your personal contents in the unit. This policy should also provide you with personal liability coverage arising out of the ownership and occupancy of the unit, additional living expenses, and loss assessment coverage. Note: Renters insurance is for renters, not owners, and it provides coverage for contents and liability only. If you are an owner, Renters insurance will not provide you the protection you need.

      2. Flood insurance - Your Association may purchase flood insurance. Please note that:

          • Condominium Associations can only purchase flood insurance per building, not on individual units

          • Townhouse Associations cannot purchase flood insurance on the building for you; you must purchase coverage for your unit on your own.

          • If the Association does purchase flood insurance, it will NEVER provide coverage for your personal property or your improvements and betterments. You must purchase this on your own.

Unit owners renting the unit to others:

    A. If you own a unit but do not live in it (rent it to others), you have the same exposures as unit owners who live in their unit; however, you may or may not be able to purchase the same level of personal insurance. Please check with your professional agent and ask them what they have available for you.

What is the Condominium Loss Assessment Endorsement?

• This endorsement, when added to your HO-CON policy, will pay for your share of any special assessment charged by the Association due to an insurance deductible (up to $1,000.00, generally - some carriers are now offering higher limits) for a loss to collectively owned property. This should cost less than $20.00 to add to your policy.