Condos are a bit tricky. They are not apartments, but they’re not quite houses either. They have their own special policy for that very reason. If you own a condo in Tennessee you should make sure you understand your policy. However, before looking into the insurance, it’s important that you understand your homeowners associations’ bylaws and master policy. By reading the master policy for the homeowners association, you will be able to determine what your responsibilities are as a unit owner. For the purposes of this blog, we will discuss the most common type of homeowners association for condos and how that policy would cover you!
Usually, all of the condo owners share ownership of the common areas and buildings of the condo community. The insurance for the condo homeowners association would cover the exterior structure of the units—like the roof, exterior siding, windows, and doors. The land and common areas—like community buildings, pool, sidewalks, mailbox stations, fitness rooms and other shared amenities would also be insured under the homeowners association. If there was a covered loss on the common grounds or to the buildings—like an injury or paying to replace the roofs after a hail storm, the association would most likely assess a bill to each of the unit owners to pay for the charges.
The individual units are owned and should be insured by each of the owners with Condo Insurance. That means that your condo insurance is responsible for covering the interior structure- like flooring, interior walls, cabinets, countertops, lighting fixtures, bathtubs, toilets, stairs, etc. Your insurance would also be used to cover your personal belongings. It would cover liability if someone were injured in your unit and loss of use to provide additional living expenses if you were unable to live in your home due to a covered loss. You would have the opportunity to add on coverage like identity theft protection, scheduled items—like jewelry, fine arts, guns, collectables, etc., and loss assessment. Loss assessment is a coverage that is often overlooked. If your condo association did suffer a covered loss and assessed the unit owners a charge, this would provide a limited amount of payment towards that assessment.
As it was mentioned earlier, this was the most common way condo homeowner associations choose to breakdown insurance responsibilities. There are many other potential breakdowns. If you would like to learn more or if you are curious if you have enough coverage on your condo, contact one of the Personal Risk Advisors at William Blount & Associates.