Tag Archive for coverage

2 unit condominium insurance

2 unit condo’s are a different breed.

Have you heard the saying?

” The only thing worse than a three unit condo, is a two unit condo”

condexI own one, so I am living this quote. You are at the mercy of who your neighbor is. This can be a great thing, or a nightmare.

What are the insurance issues?

Condo association insurance is basically the same for a 100 unit building or a 2 unit building. The issues come from your buying power and the appetite of the insurers.

Insurers:

Insurers often times do not pursue these condo’s, because quite frankly there is not enough money in it. Also, they think that they are nothing more than a two family owned by two people. They have limited common area, with more area designated as exclusive use. many of the big insurers will limit their appetite to buildings with 10 or more units. Two unit condos are akin to the ugly stepchild.

Buying power.:

Important condominium coverages like water back up, D&O, hired and non owned auto, loss of maintenance fees and many more can be expensive to buy for a small association. many times these costs are single fee based and the same price is charged for small or large associations. many times the small unit goes uncovered due to high pricing of coverage options.

Pricing tends to be higher and the costs are only divided by two parties. For example a $6,000 policy adds $500 a month to your condo fee before any other charges. This might make it harder to sell.

You might have to work harder to find the right coverage at the right price, but try not to skimp on coverage and take care of your condo. Claims will only make your search more difficult.

 

 

Does a condominium need auto insurance?

Does your condominium association need automobile insurance?

If you have an auto that is owned by the association, then the answer is YES!

But what if there is no owned auto? What then?

You still have automobile exposures. What if you rent an automobile on association business, or you hire a car. what if a trustee or employee of the association uses their car on condominium business and injures somebody?

Then you do need auto coverage. It is called hire and non-owned automobile liability. It will cover you in case of one of these events ( subject to policy conditions). The cost is cheap and worth having.

Let’s talk about your garage where you park cars. Are you responsible? Are they in your care and control. Do you valet?

Most auto exposures. If this is the case, then you need what insurance calls ” garagekeepers liability”

Ask your agent or company about these important liability issues.