Condo Insurance
John Galt Insurance Hollywood is a premier insurance company that offers convenient and efficient insurance plans for condominiums in Hollywood, FL. Our team of experienced professionals is dedicated to providing our clients with the best insurance solutions that meet their specific needs. We understand that insuring your condominium can be overwhelming, which is why we strive to make the process as hassle-free as possible. With our extensive knowledge of the insurance industry and commitment to exceptional customer service, we are confident that we can provide you with the protection you need. Choose John Galt Insurance Hollywood for reliable and efficient insurance coverage.
What is Condominium/Co-op Insurance?
Insuring a condo or co-op is a little different than insuring a typical home because you don't own the entire building. There are typically two policies involved: the master policy provided by the condo association or co-op board and your individual policy, which is typically written on a standard form HO-6. If you know what is covered by the master policy and purchase individual coverage for the rest, then you should have the protection you need.
The master policy
The common areas you share with other tenants should be covered by a master policy owned by the property. These areas include the roof, stairways, elevators, and basements. The master policy should protect the policyholder(s) from liability and physical damage. The master policy may also cover individual units as they were originally built and may or may not cover fixtures. It is important for you to know what the master policy covers so that you can purchase appropriate individual coverage for your unit and its contents. For instance, the master policy may cover original fixtures but not improvements. If you or a former tenant has made improvements, you will want to be sure they are covered under your individual policy. The condo association or co-op board should be able to supply you with the information you need or provide you with the appropriate documents that explain the coverage.
Your personal policy
Typically, your personal condo or co-op coverage will be written on Form HO-6. While the liability coverage on Form HO-6 is similar to that found in other homeowner's policies, the property coverage is different. Form HO-6 covers your personal property and other property such as improvements, additions, private balconies, private entranceways, private garages, and other property that is your insurance responsibility under the condo or co-op documents. However, the policy only covers physical damage to property if it is caused by a "named peril" identified in the policy. Those include fire, lightning, storm, explosion, riot, aircraft, smoke, vandalism, theft, broken glass, and volcanic eruption to name a few. Review the perils covered by your policy, and remember, you always have the option to purchase coverage to protect you against additional perils.
Things not covered in the typical policy
If your policy is written on Form HO-6, your possessions are not covered for property damage resulting from perils listed in the "exclusions" section of your policy. These can typically include damage due to enforcement of building codes, earthquakes, flooding, power failures, neglect, war, nuclear hazards, or intentional acts.
Loss Assessment
If your personal policy is written on Form HO-6, pay particular attention to the paragraph entitled "Loss Assessment." This paragraph entitles you to collect up to $1,000 for loss assessments charged to you by the condo or co-op association. Loss assessments typically result from losses suffered by the condominium or co-op as a whole, such as damage to a roof. These damages are then passed through to all unit owners.
Loss Settlement
Your policy will also specify what amounts you can recover in the event of a loss. In the case of property such as fixtures, balconies, improvements, and certain other such items, you are entitled to receive the actual repair or replacement cost if the damage is repaired or replaced within a reasonable time. If the damage is not repaired or replaced, you may only receive the actual cash value of the property. As for your own personal property, you are entitled to receive the actual cash value of any damaged property but no greater than the repair or replacement cost of the property. Loss settlement is always subject to the coverage limits described in your policy.
In order to qualify for payment from your insurance company, you must meet the conditions that are spelled out in your homeowner's policy. Some conditions dictate your responsibilities before a loss occurs, and some dictate the actions you must take after the loss to remain eligible for coverage. Reading your policy carefully to familiarize yourself with your responsibilities under the policy is always advisable and can speed things along should a loss occur.
Where loss is covered under the master policy and personal policy
Form HO-6 has a unique feature. When a loss is covered by both the condominium's or co-op's master insurance policy and your individual policy, your homeowners' insurance will pay only for the balance of the loss that remains after the master insurance policy pays 100 percent of its limit.
What is covered?
Standard renter's insurance policies only cover losses that result from any of the "Named Perils" itemized in the policy. If your property is lost or damaged as a result of one of these perils, your insurance company will compensate you for your loss. Some of the typical "Named Perils" are:
- Fire or lightning
- Explosion
- Smoke
- Vandalism or malicious mischief
- Theft
- Broken glass
- Volcanic eruption
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water
- Sudden and accidental tearing apart
- Freezing
- Artificially generated electrical charge
What is not covered?
It should go without saying that losses caused by any other event are not covered. However, most renter's insurance policies go a step further, listing specific events which the policy does not cover. Typical exclusions include:
- Enforcement of building codes and similar laws
- Earthquakes
- Flooding
- Power failure
- Neglect
- War
- Nuclear hazard
- Intentional acts
If you live in an area prone to earthquakes or flooding, you should consider purchasing a separate policy to insure your possessions against damage caused by these hazards.
Replacement cost vs. Actual cash value
These may sound like highly technical terms, but they are actually very important in determining how much money you will get if you ever have to file a claim. When you get a quote, you should always make sure you know which type of coverage is being described.
Actual cash value coverage reimburses you for only the amount your property was worth when it was stolen, damaged, or destroyed. This means that if all your clothes suffer smoke damage in a fire, your insurance company probably won't pay much more than you could've made at a garage sale – not the $4,000 you spent over the last six years to create the perfect wardrobe.
Replacement cost coverage, on the other hand, reimburses you for the amount it will cost to replace your property. If you bought a $400 television two years ago, you'll receive enough money to go out and buy another television just like the old one. Replacement cost coverage typically pays significantly more than actual cash value coverage.
Limitations
Like any type of insurance, your renters' insurance policy places a limit on the amount it will pay out. Coverage levels can typically start somewhere around $15,000 and go up from there. As you increase your level of coverage, your premiums will increase as well.
In addition, insurance companies have per-category limits for certain items such as jewelry, antiques, and computer equipment. If the value of your property exceeds these limits, you will want to get an appraisal proving its worth. You can then purchase an additional rider to cover the full value of your property.
Liability coverage
Renters insurance also provides liability coverage. A typical renters insurance policy covers you for accidents and injuries that occur in your home, as well as accidents outside of your home that are caused by you or your property. (This does not include automobile accidents.) This liability coverage includes legal defense costs if you are taken to court over such an accident.
Additional living expenses
If your house or apartment is unlivable as a result of any of the 17 named perils, renters insurance will typically cover your "additional living expenses." That means that it will pay for you to live somewhere else (usually in a comparable house or apartment) while your home is being repaired. The dollar limit on this type of coverage is stated within the policy. There may also be a time limit on this type of coverage.
What does it cost?
The cost of renters insurance varies greatly depending on such factors as where you live, the construction of the building, your deductible, and how much insurance coverage you need. But renters insurance is much less expensive than homeowners insurance. Replacement cost coverage is somewhat more expensive than actual cash value coverage, but in the event of a catastrophic loss, it is always worth the extra premium.
Leave your Condominium insurance concerns to us! Contact us for questions and quotes at (954) 332-3322.