The Mortgage Buddy would like to welcome guest blogger Tom Coonan to the site. Tom is the owner of Coonan Insurance in Oxford MA. Coonan Insurance is a family owned and operated establishment that has been fulfilling the insurance coverage needs of Worcester County residents for over 20 years. In this article Mr. Coonan shares his knowledge of condominium insurance coverage with the Mortgage Buddy audience.
Condominium Unit Owners Insurance Made Simple For Mass Homeowners
The Condominium Master Policy
Because it can be more efficient or economical, your condo association may insure all the building and common elements under a single package policy, commonly called an association master policy.
There are three typical ways in which coverage can be provided through the condo association policy:
- Insures the basic building(s) – walls, roof, floor, elevators – but leaves to the individual unit owner the responsibility of insuring appliances, carpeting, cabinets, wall coverings, and other items in your unit, and in some instances the interior walls.
- Insures both the basic building(s) and the items within your unit other than personal property.
- Insures both the basic building(s), the items within your unit and also includes unit owner’s fixtures and improvements.
When the condominium association insures just the structure, a unit owner policy (H06 Policy) is normally written to cover the unit owner for:
Lenders as a general rule will want to see the individual unit owner obtain a separate H06 policy equal to 20% of the value of the home. It will protect against items not covered by the association master policy that may be your insurance responsibility. These can include
- The value of the building additions and alterations made by you, at your expense.
- Value added – If you have put a better quality carpet than was originally there, for example, this coverage would make up the difference in case of a loss.
- Damage to your unit not compensated because of the master policy deductible.
Building coverage is one of the more complex parts of insuring an association. 
In other instances, the condominium association does not insure the structure at all. In this situation, a Mass. homeowner’s policy would be written for the unit owner, just as it would be for an insured person with a single family home. This is typical in a two unit condo association (duplex).
Remember, however, that the conditions in condominium association bylaws and other governing regulations may vary widely. Be certain that your policy covers any potential gaps in the condominium association master policy.
Your Personal Property Coverage
Because you have a large investment in your personal property, you need enough coverage to compensate you if you suffer a covered loss.
Your individual condominium unit H06 owners policy will protect your personal property against loss or damage from a number of specified causes, such as:
- Fire or lightning
- Weight of ice, snow or sleet
- Windstorm or hail
- Theft
- Accidental discharge or overflow of water
- Explosion
- Riot or civil commotion
- Accidental eruption of hot water heating system
- Aircraft
- Vehicle Damage
- Freezing
- Smoke damage
- Artificially generated electric current
- Vandalism or malicious mischief
- Falling objects
Your personal property is covered against these kinds of losses both at your residence an any other location worldwide, subject to some restrictions. For example, theft from another residence you own, if you are not temporarily residing there at the time, is not covered.
Guest’s property would be covered within your unit.
Most basic coverage for property does not include flood or earthquake coverage. This can be purchased separately.
To protect your condominium against these possibly other unspecified losses, you need special coverage.
Deductibles – IMPORTANT
Your policy will include a deductible — the amount of covered loss you must pay out of pocket before insurance payments begin.
With a $500 deductible, for example, you pay the first $500 of each covered loss. Higher deductibles are available.
By increasing your deductible, you can lower your premium. When choosing a deductible, you must decide how much you would be willing and able to pay up front, and out of pocket before the insurance began to pay.
Be certain you have adequate coverage. Complete an inventory of your possessions and their purchase date and price.
If you work from home
If you operate an office or small business in your home, you may need special coverage.
Discounts are available if you bundle your condo unit owners insurance and auto insurance with the us.
Coonan Insurance Agency is a full service insurance agency, offering all lines of business and personal insurance. We have access to the insurance companies with the best rates and service found in New England.
Please do not hesitate to call if you have any questions regarding your insurance coverage or our service. Please feel free to visit our website at www.coonaninsurance.com. We are here to meet all your needs.
Coonan Insurance 267 Main Street Oxford, MA 01540 Tel: (508) 987-7122 Fax: (508) 987-7152 Toll Free: (866) 987-7122
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