- A single family homeowner will need ‘Homeowner’s Insurance’ that will cover their home and their entire lot.
- A condo or townhome owner will need an ‘HO6 policy’, which is detailed below.
- A tenant should always carry their own ‘Renter’s Insurance’ to cover their own personal property.
Insurance Information for Owners
Owner’s Policy: HO6
The Homeowners Association purchases insurance for the building’s common elements and Association-owned property.
As a unit owner, it is important for them to maintain their own insurance to cover the unit interior items detailed in the declarations that are their responsibility in addition to their personal property. An HO6 policy is basically a Homeowner’s insurance policy for condominium and townhome owners.
To determine what coverage is included and therefore what you may need to supplement, please reference the declarations of the Association. Owners also have liability exposure not covered under the Association’s Master policy. This coverage is inexpensive, usually less than $50.00 per month, and can be combined with auto insurance or carried with the same company covering the Association’s Master policy.
HO6 policies should cover four basic items:
• Personal property coverage
• Loss Assessment coverage
• Liability coverage
• Loss of use coverage
Property Coverage protects the individual Homeowner against financial loss should their property be destroyed or stolen. The perils covered include fire, lightening, windstorm hail, explosion, smoke, vandalism, theft, accidental discharge of water, and losses from numerous other sources. It is also recommended that a scheduled valuable items floater be added for gemstones, diamonds, etc.
Loss Assessment Coverage reimburses the owner for a portion of the Association’s deductible which is assessed to the unit, including the any roof deductible for wind and hail losses.
Liability coverage includes bodily injury to a guest inside your home or water loss causing damage to an adjacent unit. It is encouraged that all members carry this crucial coverage.
Loss of use coverage provides additional living expense should you need to relocate to an apartment or hotel due to a covered loss such as a fire. If the unit is rented, the coverage pays the owner a fair rental value and allows you to continue making mortgage payments.
Homeowners should contact their insurance agent to review their personal insurance program and policy options.
Handouts are attached here – one from Moody Insurance and one from CB Insurance.