Many condominium owners believe that the association’s master policy provides adequate protection. However, the master policy insurance that protects the building does not protect the interior of the individual condominium units. Make sure your limits are adequate based on your documents. Prior to purchasing an HO-6 Condo Homeowners insurance policy, you should understand how your unit is defined in your governing documents.
“STUDS OUT” DEFINITION
With “STUDS OUT” definition, you are responsible for replacing everything in the condominium unit, including the wallboard, partition walls, subfloors, ceiling covering, wall coverings and improvements, floor coverings, light fixtures, bathroom, and kitchen cabinets (and fixtures), appliances, etc. (Everything from the “studs out” towards the exterior.)
“BARE WALLS” DEFINITION
With “BARE WALLS” definition, you are responsible for replacing anything beyond the bare wallboard in the unit. You would need to replace wall coverings and improvements, floor coverings, light fixtures, bathroom, and kitchen cabinets (and fixtures), appliances, etc. Some documents may define this differently. Please review your specific situation.
“SINGLE ENTITY” OR “WALLS IN” DEFINITION
With “SINGLE ENTITY” definition, the master condominium policy will replace the condominium unit “as originally conveyed and built by the developer.” You will be responsible for replacing all improvements and betterments to the unit and your personal property.
An HO-6 Condo Homeowners policy https://www.insurance-financial.net/home-insurance/is an essential component for the replacement of the building portion, your personal property, and improvements and betterments. Your specific documents may differ slightly, so be sure to purchase the proper protection for both the building and the contents that you will need.
It is very important that you work with an insurance agency https://www.insurance-financial.net/celebrating-36-years-of-service/that understands the association’s master insurance policy and governing documents to ensure that adequate protections are purchased. Call us at 1-888-4390479