More to consider than just the insurance a homeowner or renter should buy…

Both homeowners and renters should purchase insurance to protect their home and belongings. For owners, your property, the contents and improvements (cabinets, flooring, countertops and other fixtures too). For resident owners and renters, you should be insuring your belongings and valuables. Often time what we have stored in our home, is our life or at least a good chunk of it. And an insurance check after a major incident can go a long way to help put things back together. In both cases, residents and owners, a life can be turned upside down in mere seconds by a flood or fire and insurance coverage adds a layer of security and protection which can make a huge difference.

In a Condominium Association such as Park Tower, insurance is a requirement. Both the Declaration and Rules contain language mandating insurance be purchased. In combination with the Association’s insurance policies for the building and common elements, the intent of the mandate is to make sure resources are available after an incident to get everyone and the building whole again. Here is what the Rules and Regs say about Insurance, from page 30 of the handbook:

“The association maintains insurance policies covering, among other things including property, public
liability, workman’s compensation as well as fidelity bonds for employees.

In addition, unit owners and tenants are responsible for insuring the unit and personal belongings on the property, including storage locker items and automobiles in the garage. Unit owners shall obtain a minimum $500,000 liability insurance coverage for each unit.

If by any act or omission committed willfully or negligently by a unit owner, tenant, guest or household pet, damage is caused to the common elements, or to a unit or units owned by others, or if maintenance, repairs or replacements shall be required due to such acts, then such unit owner shall pay for such damage and any maintenance, repairs and replacements as may be determined necessary by the association. Should any such act result in damages that trigger an insurance claim under the association’s policies, the board may charge any relevant deductibles to the unit owner responsible. The association may also charge a fee for the time spent by members of the management and/or employees to respond to such damages and coordinate the necessary repairs and replacements, including if necessary the time required to process an insurance claim and meeting with contractors.

Failure to submit proof of liability insurance in the amount of $500,000 per unit will result in a $100 per month fine until such requirement is met and the fine is paid. In addition, the association reserves the right to purchase the required interim coverage (also known as “forced place insurance”) until proof of insurance is submitted and charge the fee to the unit owner’s account.”

For your belongings and valuables, we recommend that all residents take pictures to prove the presence of their belongings. And it is wise to maintain records such as receipts and appraisals on the value of high priced belongings such as electronics and jewelry. Renters should refer to their leases, as many require that “Renters Insurance” be maintained. It is relatively inexpensive, so don’t be afraid to call an agent to get a quote.

Owners, we also believe it is wise to keep an “Umbrella” policy, which is a relatively inexpensive policy that adds a ‘universal’ blanket of coverage for both liability and belongings. The Association in fact carries a $25Million Umbrella Policy, just in case an event causes the building to exceed its coverage limits on a particular policy.

If you have any questions, feel free to shoot me an e-mail, t.patricio@dkcondo.com.