If I live in a Condo or Townhouse, I don’t need any insurance because I have an Association…..
I am going to make this post relatively brief, which I assure you can be a daunting task for us “Minkey’s!” If you own a condo or a townhouse (if you rent, see my previous post on renter’s insurance), you should have a separate policy for your unit, i.e. separate from your Association policy. No, it is not required by the mortgage company, and no, it is generally not required by your Association’s master policy. It is also not required that we have health insurance, but most of us who can afford it, still have it. Just like your life is valuable, your investment in your home is just as valuable.
To clear up a few things, I will give you a bird’s eye view of what your Association policy typically covers; the overall structure of the building, such as the roof, the exterior, the siding, walkways, breezeways, often referred to as the “common areas.” It also would cover the interior and exterior structures of any amenities such as work out rooms, rec rooms or pool areas.
What doesn’t it cover? You have no coverage for your personal belongings. You have no coverage for personal liability. You have no coverage for the interior feature of your home, or improvements or betterments that were made by you or a previous owner. You have no coverage for guest’s medical expenses if injured in your home. You have no coverage for additional living expenses should you have to temporarily relocate due to a catastrophe, such as a fire in your unit.
Generally speaking, an Association policy covers from the studs of the walls out, plus the above mentioned items. You are responsible for the studs of the walls in, plus the above mentioned items. I don’t think cost is usually a factor as to why so many customers I consult with don’t have this coverage. It is usually because it was not something that was required at the loan document signing party as it is during a single family home purchase. Once in the home, it becomes out of sight out of mind. So, please make sure you have the protection you need if you are a condo or townhouse owner, as your Association will not be able to help you should a situation arise where you do not carry your own insurance policy!
Jim Minkey on 
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Anurag on 
