Condominium Owners Insurance: The Basics
Published June 19, 2010 | 
Your condominium is your home, from those mounted shelves you fought with for three hours to the trinkets and pictures you’ve placed on them. But your insurance needs as a condo owner are unique. The right condo insurance will guarantee your possessions, the additions you’ve made to your place and your condo unit are protected.
Your Co-op’s Policy
Your condo or co-op board likely has insurance on the entire building. A master policy usually covers liability and physical damage to the lobby, basement and hallways. However, some condominium associations don’t have insurance policies, in which case the tenants will be charged for any damage to the common areas.
Your Policy
Your policy covers your possessions; additions such as cabinets, light fixtures, appliances and shelves; and living expenses, should your condo get damaged by a disaster covered in your policy.
Liability protection covers against injuries that occur on your property and damages caused by your property. Think: your child’s friend slamming his or her fingers in your sliding glass door or your toilet overflowing and causing damage to a neighbor’s unit.
Things to Ask About
Are Any Structures In Your Home Covered By Your Condo/Co-op Association?
Find out exactly what is covered in the master policy. Some associations insure the entire unit as it was originally built-excluding any additions or renovations made by you or previous owners. Other associations only insure the bare walls, floors and ceilings. This means you are responsible for plumbing and wiring. If the master policy only covers common areas, it’s your responsibility to insure the interior of your unit.
Will You Be Reimbursed For A Unit Assessment?
First, what is a unit assessment? If any damage occurs to an insured, common area, the condo owners are sometimes charged a fee for repairs. (If there is no master policy, you will be charged for the damages in their entirety.) If your condo association charges a fee for repairs to common areas and you want your insurance to cover that, you should get a unit assessment rider.*
Are You Protected Against Water Damage?
If the sewers or drains back up, will you be covered? Some policies protect against water damage while others do not. Make sure to check and see if you’ve got it. If you don’t, it’s usually just an extra five dollars a year to add it.
Do You Need Additional Personal Property Coverage?
Most home policies cover your expensive possessions up to around $2,000. If you’d like to insure them for their appraised value, you need to purchase a floater.** The coverage usually pays if you lose that item as well. There is no deductible.
Do You Need Flood Or Earthquake Insurance?
If you live in an area prone to those types of natural disasters, you should spring for the additional coverage. Standard homeowners’ policies don’t cover floods or earthquakes, but you can purchase both separately through your insurance agent. Flood and earthquake insurance are slightly different than coverage for other disasters. For example, earthquake insurance has a different type of deductible-a percentage of coverage instead of a dollar amount. Talk to your insurer and get the specifics before you spend money on those extras.
Are You Eligible For Any Discounts?
If you’re shopping for condo insurance, you’re aware how expensive it can be. You may be able to lessen the financial burden by raising your deductible or installing safety fire and anti-theft devices. If you insure with the same company your condo/co-op association has their master policy with, you may also pay a lower premium.
You life lies within those condo walls, so make sure you protect your home and possessions with the right condo insurance.
*A rider is something you add to your basic condo insurance policy for more protection.
**A floater is an addition to a policy to cover personal valuables.
Avoid Getting ‘Nailed’ When Hiring a Contractor
Published June 19, 2010 | Hiring a contractor to add value to your home investment makes sense. Always verify all contract workers’ compensation coverage before commencing. Otherwise, you may find yourself responsible for injuries incurred by the workers while they are remodeling or repairing your home.
There are some other important insurance issues you should examine before selecting a contractor. It is advisable to check the validity of all credentials, including the contractor’s or remodeler’s license and any applicable trade group memberships. Compare costs and solicit bids from more than one contractor or remodeler. Get all bids in writing, and make sure each bid includes building specifications (what is being worked on and to what extent), labor costs, material costs and time needed to complete the project. This will protect you from unforeseen costs, while further protecting you from future misunderstandings and other misfortunes.
You can call the Better Business Bureau (BBB) to quickly and easily verify local references. The local BBB office can also let you know if there have been complaints made against the contractor or remodeler.
Finally, most contractors and remodelers will gladly show you a sample of their work done at other nearby homes. Accept this offer. See their workmanship for yourself. Speak with previous customers and clients about how the contractor met their needs, stayed on schedule and worked within the projected budget.
Coutesy of Insure Me
Dangerous Dogs Pose Insurance Debate
Published June 19, 2010 | Americans love their dogs. In many households, canines are considered part of the family, participating in daily and weekend activities, along with other family members.Though dogs can be loving and fun—and offer never-ending companionship—they can also be unpredictable: sweet and docile one minute, and aggressive and dangerous the next, depending on the situation.With risk like that, homeowners who are dog owners should carefully consider the dog/s they choose to be part of the family and consult with their insurance company before bringing those cute little canines home for good.
- Deny coverage on certain types of dogs
- Opt not to cover dog bite or other damage dogs cause
- Limit the number of people in the household covered
- Limit coverage extending to particular animals with a history of aggression, or
- Non-renew the policies of those who purchase certain types of dog
- One-third of all homeowners claims involve dog bites.
- Dogs bite nearly five million Americans every year.
- Children are the victims of most serious attacks.
- Almost one in five require medical attention, with reconstructive surgery often needed.
- Dogs cause approximately $1 billion in medical and insurance losses annually.