Should I Customize My Condominium Insurance Policy?

At Frontline Insurance we recognize that no two condominium owners have the same property or face the same risks. Customizing your condominium insurance policy is a must. Customization can ensure your condo coverage meets your unique needs.

Working with your insurance agent, you can choose endorsements to modify any condominium owners policy. Think of endorsements like options on a car. You can purchase a car without any frills. Alternatively, you can buy a car with extra features like a back-up camera or air conditioned seats. These extra features will ensure that your car better fits your needs.

In purchasing a standard condominium policy, the insurance contract provides basic coverage. The policy covers your personal property, selected improvements made within the unit and protects you against liability if an injury occurs on your property. However, you may consider adding additional options to broaden coverage and better fit your unique needs as a condo unit owner.

Here are a few endorsements or optional coverages that you can use to customize your condominium insurance to better suit your coastal lifestyle.

Unit Owners Coverage – A Special Coverage

A standard condo policy has only a limited number of perils or loss causes that cover your dwelling. The policy contract specifically lists “named perils.” A condominium policy commonly has 16 specifically named perils that range from fire, windstorm, smoke, theft, and riot or civil commotion. If a loss occurs to the condo and it is not one of those 16 specifically named perils, you would have no insurance coverage for the loss.

Unit Owners Coverage – A Special Coverage endorsement

Removes the list of 16 specifically named perils. This endorsement broadens coverage to include coverage for all direct physical loss, unless that cause of loss is specifically excluded. With the addition of this specific endorsement coverage is broadened to a larger array of losses.

Water Backup and Sump Overflow Coverage

What happens if your sump pump overflows or the city sewer backs up into your home? Many condo owners policies offer no protection for this messy loss. Adding a Water Backup and Sump Pump Overflow coverage endorsement to your condo policy provides coverage for losses resulting from water that backs up through sewers or drains. It even covers overflows from a sump pump resulting from the mechanical breakdown of the sump. Coverage is subject to specific coverage limits and policy contract.

Personal Property Replacement Cost

There are two ways condo policies cover your personal property. The standard condo owners policy pays based on “actual cash value” for stolen or damaged personal property. If someone steals your four-year old computer, the loss is settled for a similar computer at today’s cost, minus a depreciated amount based on the age of your computer.

Personal property replacement cost coverage, on the other hand, provides a new item regardless of the age of the item and without a deduction for depreciation. For example, if a burglar steals your two-year old computer, this endorsement ensures payment based on the cost to replace the computer with products of like kind and quality without considering the age of the stolen computer.
Contact your local Frontline Insurance Agent to learn about other ways to customize your condo insurance policy. If you do suffer a loss, you’ll be glad you took the time to explore your options.

Please remember that the comments contained in this blog are general in nature and that coverage under any specific policy of insurance will depend upon the terms and conditions of such policy.