Insuring Your Condominium Unit - Tips from Blake, Hall & Sprague Soule Allen Insurance, South Portland, Maine condo unitowners hazard insurance

We protect over 600 condominium units. During our first conversations with new customers, we find that many have either bought too much insurance or not enough.

Condominiums are different from other types of property. The joint ownership of common property, and being subject to association bylaws create unique risks which your insurance should address.

If you need a professional insurance review , call us at 799-5541.

A Condominium Unit Owners Insurance Primer

The following is a brief description of some of the coverage on a Condo Unit Owners' Policy, and some common mistakes to avoid.

Coverage A (Dwelling)

The basic policy includes a token $1,000 of Coverage A. Common mistakes here include:

Buying too much Coverage A, which your insurance company would never pay a claim for.
Not buying enough Coverage A, leaving you at the mercy of your association's insurance company.
Failing to buy a very inexpensive endorsement that greatly improves your protection.

Coverage C (Personal Property)

This covers your personal belongings, subject to the limit you choose. Make sure you have:

Replacement Cost Contents Coverage (HO 04 90), to avoid depreciation of your property in a loss settlement.
"Scheduled Personal Property Endorsement" if you have much jewelry, furs, firearms, silverware, collectibles or computer equipment. These items may not be properly covered by your regular policy.

Coverage D (Loss of Use)

This coverage reimburses you for extra expenses (food, renting an apartment, etc.) while you are unable to occupy your condominium due to a covered loss.

Loss Assessment

Covers your share of an Association assessment charged during the policy period for direct loss by a covered peril to property owned by the Association. Assessments can be made even for losses that occurred before you bought your unit. Common coverage errors include:

Not buying enough Loss Assessment coverage.
Failing to buy a very inexpensive endorsement that greatly improves your protection.

Coverage F (Liability Coverage)

You should select your own limit to best protect your assets and earnings potential. A professional agent will ask you questions to help you choose the most appropriate limit.

If your unit is rented to others, make sure that your agent has included the appropriate coverage.