Category Archives: unit insurance

HOA Insurance Issues

Knowing what to expect from your HOA master insurance policy and what you need to insure on your own is important to sort out before you purchase your condo. It’s also critical to know if your HOA carries enough information to handle a catastrophe in your unit or a unit next door. Being underinsured can spell trouble, especially if your individual insurance has any missing gaps with the master insurance. 

Homeowner insurances for town homes, condos, or duplexes that are part of the master insurance of an HOA usually cover all the public, common areas of a development. This includes areas where there are amenities, elevators, and all outside features such as the roof and exterior siding. Individual homeowners need to insure only their own units, including their own personal items and appliances. In addition to insuring “things,” these two parts of any HOA insurance should also cover liabilities for injuries. 

Let’s face it, most people don’t put too much thought into insurance until the unthinkable happens. Whether it is a fire, flood, tree damage, smoke damage, or an accident, not having insurance or being underinsured can create a huge headache, not to mention a financial disaster of its own making. 

Know the Difference

From an insurance point of view, it is worth learning where the HOA insurance stops and your individual unit’s insurance should begin, so as to make sure no gaps exist that could leave you without coverage after damage occurs. You should know what the different items are that are covered by each type of insurance. Some homeowners find it helpful to use the same insurance carrier or have both carriers connect to be sure that gaps do not exist. 

 

Know the Limits 

It is also recommended that unit owners understand that there are limits to the HOA insurance. Your condo association’s master policy will cover property damage to the building and common areas, but only up to its limits. Depending on what those financial limits are, there’s always a chance that a severe incident could exceed them. If that happens, it might fall on the condo owners to make up the difference and help repair the damage.

Know the Liability Requirements

Most HOAs require that individual unit holders have some liability insurance in case a visitor gets injured in a unit. The master insurance should have liability insurance to cover common area accidents but your unit also needs to be covered. Talk to your insurance agent about how much is reasonable and if your HOA has any requirements of level of coverage.

When it comes to insurance, it is essential to know the types, limits, and requirements for your individual insurance and what is covered in the master insurance policy. If you have questions, request a copy of your HOA insurance policy and discuss what gaps need to be filled with your individual agent. 

 

The Importance of Proactive Property Maintenance

Isn’t it great when everything in your condo works well and runs smoothly? Yeah, we think so too! No one wants to be living in a building where the elevator is under repair, the pool is closed again, or the grounds look disheveled. That’s why we advocate for proactive property maintenance and here is why.

What is Proactive Property Maintenance?

Managing a community is tough work. It takes diligence, communication, and a whole lot of patience. In our world, there are some managers who are reactive and some that are proactive. The former simply waits for something to happen and then takes action. The latter takes the initiative to recognize when an issue is brewing and acts to fix things before they actually become a problem.

Avoid Crisis Mode

Every condo community has its fair share of emergencies. A cracked pipe, broken water heater, or furnace that quits in the middle of the night are usually the culprits. Most of these cannot be foreseen unless the manager has some sort of sixth sense. But there are some events that can be avoided if regular maintenance is conducted. Annual inspections and repairs should be done on all utilities that the condo association is responsible for. By keeping a watchful eye on these services and equipment, property managers will be able to anticipate that a problem is forming and avoid the crisis mode that sometimes occurs when an emergency pops up.

Reduce Overall Costs

Let’s face it, repairs can get costly especially if the fix happens in an emergency setting where help needs to arrive during off-hours. Being proactive about pool maintenance, elevator inspections, and other condo utilities can mean savings for the association and eventually the condo owners themselves. Remember that emergency calls cost more than regular maintenance.

Access to the Best Contractors

Sometimes when an association is known for reacting to one “fire” after another they can get a reputation as being hard to work with. Condo associations that are proactive and plan ahead tend to get access to the better contractors who have “been around the block” and know a thing or two about staying on top of repairs and annual maintenance.

Does your condo association react or are they more proactive? Saving money, better access to assistance, and saving yourself from crisis mode is a way to keep your community happy. Check out some of our services that can help your community. Call Thayer & Associates, Inc., AMO at 617.354.6480 or visit our website.

 

HOA and Individual Insurance

No one ever thinks about insurance policies until an accident or injury happens. Then recovery and rebuilding rely upon the coverage you have. Living in a community means there are two types of insurance that homeowners should worry about: association insurance and individual insurance on the unit. Let’s take a closer look at “who covers what” when it comes to insurance coverage within an association.

What is a Master Policy?

Living in an apartment complex, condominium unit, or townhouse potentially means that you are part of an association otherwise known as a homeowners association or HOA. Many HOAs carry what’s known as a “master policy.” Generally, the Master Policy has “walls-out” coverage for all units in the building.

What is Covered Under a Walls-Out Master Policy?

This type of policy typically provides coverage for both physical damage and personal injuries. Items that are usually covered in an insurance policy of this kind may include damage to the parts of the property shared by all owners, such as roofs, common walls, lobbies or atriums, stairways, elevators, basements, fitness centers and pools, ponds or lakes, playgrounds, and clubhouses. The damage could be caused by Mother Nature, vandals, theft, or even homeowners who have experienced an accident. The governing documents of your specific HOA should state exactly which areas the HOA master policy insures.

Personal injuries that occur in the common areas and amenity areas are also usually covered under the master policy. For example, if someone slips and falls in the pool area or is injured in an elevator, those injuries would be most likely covered under the HOA master policy.

What Should Individuals Insure for their Units?

Individual homeowners need to insure only their own unit. While the master insurance covers the basic building(s) such as walls, roof, floors, and elevators, it leaves to the unit owner the responsibility of insurance appliances, carpeting, cabinets, wall coverings, and other items in the unit. Individual insurance should also cover personal property including clothing, jewelry, electronics, and upgrades you’ve made to your unit.

Using the same company that insures the master policy for your HOA as your individual insurance for your unit may have some advantages in that the company will easily be able to spot gaps in insurance. If you are not using the same company, you and your insurance specialist will want to take 

a close look and consider what is left out or what not to buy duplicate coverage for.

Do you have questions about what is covered and by whom? Call Thayer Associates at 617.354.6480 or visit our website.