Home > Uncategorized > Condo Building Items

Condo Building Items

(photo courtesy StockVault.net)

Condo Building Items

More and more cities are finding revitalization from developers purchasing dilapidated buildings and refurbishing them into condos and apartments. Young and old alike are finding condo living to fit in with their lifestyle, the young like being in the city and able to enjoy the vibrant local shops/restaurants while older folks enjoy not having to maintain a yard & home.

In most cases, a condominium association’s “master policy” handles the insurance for the condominium structures and any common elements used or provided for use to unit owners. The unit owners may be required to cover certain aspects of their unit depending on the “master policy” and by-laws for the condominium association.

Most “master policies” offer requirements for insurance by their unit owners. There are four typical insurance requirements that most “master policies” have:

Personal Property/Liability/Loss Assessment – the unit owner is only required to cover their personal belongings, personal liability, & loss assessment. The “master policy” covers the cost to repair/replace the condominium unit.

Upgrades or Additions/Personal Property/Liability/Loss Assessment – the unit owner is responsible for insuring the additional cost of upgrades or additions to the condominium unit. The “master policy” will cover the cost to repair/replace a basic unit. So if there was an upgrade to the countertops to granite or quartz, an added sunroom, upgraded tile, etc. then that is what the unit owner would insure on top of their personal property/liability/loss assessment.

“Paint In”/Personal Property/Liability/Loss Assessment – the unit owner is responsible for insuring all items within a condominium unit less the drywall & subfloor. The unit owner would be responsible for light fixtures/appliances/wall coverings/draperies/shades/floor coverings/etc. on top of their personal property/liability/loss assessment.

“Walls In”/Personal Property/Liability/Loss Assessment – the unit owner is responsible for insuring all items within a condominium unit including the drywall & subfloor. The unit owner would be responsible for every interior building item from the wall studs & floor joists in on top of their personal property/liability/loss assessment.

Condominiums are unique in that you can choose an arbitrary figure for insuring building items and personal property. A standard homeowners policy insures the home for replacement cost (square footage + type of construction + features/additions = replacement cost of home), which derives the needed coverage amount. Personal property is calculated as a percentage of that amount (usually 50%-75% of the dwelling amount).

When it comes to insuring your condo, you need to first look at the by-laws to see what you are responsible for insuring. Once you know that, talk to the realtor, the condo developer, or a fellow unit owner to get advice on how much coverage you should have for building items. Guesstimating the cost of replacing your personal belongings today will give you a roundabout figure of how much to insure your “stuff”. Take into account replacing the items with new, doesn’t matter if you got it on sale or at Goodwill. If you replace it today, what will it cost?

Contact Us!

At M. Vander Plow Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 616-396-1497 or send us a note at mvpinsagency@gmail.com. We want to help you meet your goals, and make sure what’s important to you is protected!

Categories: Uncategorized
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: