Tuesday, May 26, 2015

The Top 10 Association Insurance Questions Continues!

We are up to question 4 of "The Top 10 Questions asked by Board Members and Community Managers Regarding HOA and Condo Association Insurance."

By: Brian J. Finnerty (CIC), Area Sr. Vice President, Arthur J. Gallagher Risk Management Services

Question 4:
What do I need to have on my HO6 policy?

Answer:
What I suggest to most people is to have the association documents available when you talk to your personal insurance agent.  The state of Maryland makes it easier than a lot of other states because of the condominium law that governs the master policy and what it should cover.

So your personal agent should be familiar with the basics of what limits you need to carry on your HO6 policy.  Here are some items to consider however:
  •  How much in improvements and betterments have been made to your unit since original purchase?
  • How much in value do you have in furnishings and personal belongings
  • Have you considered a personal umbrella?
    • This policy can extend your liability limits above what you have on your auto and your homeowner liability
  • Do you have a personal articles floater?
    • Many items like jewelry have limitations on what the base property policy will pay.  By asking about a personal articles floater you can protect the full value of your more valuable items.
  • Have you considered “loss assessment” coverage?