Condominium Insurance
Condominium Insurance Information
What types of insurance do I need for a condominium?
If you have bought an apartment in a Condominium or WalkUp, the mortgage bank will surely require you to have insurance to protect your investment. However, the minimum insurance required by the financier may not be enough and you may need more coverage to protect your personal belongings, civil liability or fees that may be charged to your account due to expenses incurred in an accident in the common areas of the building.
In addition, you never know when an incident may happen in which it is necessary to have good insurance coverage. Such is the case of Nestor and Sandra, a married couple who live in a condominium in Condado, who had the bad luck that a neighbor’s water heater broke down, causing a large spill of water that reached their unit.
Nestor and Sandra, less than a year ago, had just installed a beautiful wood laminate floor from the entrance to the living room and dining room of the apartment. Due to the flood they suffered from the water coming from the neighbor’s house, all the new floor was damaged, having to replace it completely.
Where did the money come from to repair the flat? Well, it turns out that neither the couple nor the neighbor had their own insurance policy. So they had to go to court to force the person responsible for the incident to pay for the damage caused to Nestor and Sandra’s unit. A very unpleasant situation, which if he had had insurance, could have been avoided.
The bottom line is that to protect your condominium apartment, you will need two separate policies:
- Your own insurance policy This provides coverage for your belongings, structural improvements to your apartment, and additional living expenses if you are the victim of a fire, theft, or other disaster listed on your policy that requires you to move temporarily while you repair your home. You also get liability protection.
- A “master policy” (master policy) granted by the administrative council of the condominium. This covers the common areas that you share with the other owners in the building, both for civil liability and for physical damage that includes elements of the building, such as the roof, basement, elevator, boilers, corridors, stairs, etc.
In order to properly insure your apartment, it is important to know which structural parts are covered by the condominium association and which are not. You can do this by reading the laws of the association and/or lease agreement. If you have any questions, talk to the condominium association, an insurance professional (insurance agent – authorized representative), or a trusted attorney.
Sometimes the association is responsible for insuring individual condominium units as originally built, including standard furnishings. In this case, each owner is responsible for alterations to the original structure of the apartment, such as a kitchen or bathroom remodel. Sometimes, it includes not only remodels you do, but those done by previous owners.
In other situations, the condominium association is only responsible for insuring the walls, floor, and ceiling. (New) For Private Elements it would be the coverage called HO6 that in compliance with the Puerto Rico Condominium Law, this policy is designed to cover the exposure of the original private assets and/or improvements within the insured unit.
If you own an apartment, you are responsible for protecting your investment, managing the correct value information inside the unit, and selecting the covers you want.
You can also purchase an HO6 policy if you own a balance apartment and protect yourself in the event of an unexpected situation that causes losses to your apartment.
Also ask your insurance professional about the following additional HO6 coverages.
- Unit Share Charges This will reimburse you for a mandatory share charge that is assessed to all unit owners as a result of a covered loss.
- Backflow of sewage (water back-up)
This insures your property against damage caused by the return of sewage and drains. Backflow coverage may not always be included in a policy so check to see if yours includes it. - Umbrella Liability Umbrella This is a cheaper way to get more liability protection and broader coverage than is included in a standard condominium policy.
- Flood or earthquake If you live in an area prone to this type of disaster, you will need to purchase separate flood and/or earthquake policies. Both insurances can be purchased through our office.
- Valuables Floaters or Endorsements If you own expensive jewelry, furs, or collectibles, you should consider getting additional coverage that covers all of these items, as a standard policy generally only covers up to between $1,000 and $2,000 dollars for theft of your valuables.
When shopping for condominium insurance it is very important that you find an agent (insurance representative) with a company that specializes in this type of property. Do not forget to ask about any discounts that are available and that may apply to you at that time. You could also lower the price of your premium by increasing deductibles, installing or already owning fire detection and alarm systems, and insuring your unit with the same company that handles the condo or building policy.
Seguros Puerto Rico always with you, to serve you.
– It is important that when you purchase your insurance (policy) you are aware of what the claim process will be like and thus be sure that you have the indicated coverage.
– At Seguros Puerto Rico we advise you so that you have peace of mind and know that you are protected, always holding your hand.
– Contact us with any questions about your business and personal insurance.