You bought a condo, obtained a mortgage loan, and are presently prepared to move in to your new home. Be that as it may, what happens when you have property damage in your unit? Would it be advisable for you to call the insurance company or your Condo Association? Is it accurate to say that you are secured by your Condo Association’s master insurance policy? What sort of insurance is required under your mortgage? Is it true that you are required to have a HO-6 insurance policy? All these significant inquiries should be answered before you move into your new home.
To begin with, does your Condo Association hold a Master Policy of Insurance (“Master Policy”) and, provided that it does, does it cover your unit? Typically your Condo Association should hold a master or blanket type of insurance policy. Thus, except if a slip-up was made, you can assume that your Condo Association has a Master Policy and it will probably fall under one of these classes:
- Single Entity;
- All-In; or
- Bare Walls.
The followings definitions come from Investopedia:
“Single entity coverage is a type of insurance policy that covers all real property in a condominium, including both the common areas shared by all property owners as well as the individual units. Single entity coverage is used for condominiums (or condos), a type of residential property in which some common elements, such as the entryway or light fixtures, are used by all residents of the building, while other elements are only used by the condo unit owner.”
“Bare walls coverage is an insurance policy that applies to communally used features in multi-family residential buildings. Bare walls coverage is generally found in master policies for condominium associations.”
“All-in coverage is a type of insurance coverage that applies to communally used features in residential multi-family buildings as well as the structures inside the individual units. All-in coverage, also called all inclusive coverage, is used for condominiums (or condos), a type of residential property in which some common elements, such as the entryway or light fixtures, are used by all residents of the building.”
Your mortgage company may require you to obtain a HO-6 policy especially if the Master Policy does not cover interior improvements to your condo. It is therefore important that you are familiar with what the Master Policy covers and what is required by your mortgage company. Otherwise, you may find yourself in violation of what your mortgage company requires. You could potentially lose everything.
If you need to file a claim for property damage call Florida Claims Resources to get help filing your claim and using the terms that are correct to assure your coverage is not limited. Florida Claims Resources ensures that your insurance company pays you the maximum amount for your claim. We represent YOU! Contact us 954-345-7676.