Insurance Information for Owners
Owner's Policy: HO6
The Homeowners Association purchases insurance for the building's common elements. As a unit owner, it is important to maintain your own insurance to cover the unit interior items detailed in the declarations that are your responsibility in addition to your personal property. To determine what coverage is included and therefore what you may need to supplement, please reference the declarations of your Association. Owners also have liability exposure not covered under the Association's Master policy. This coverage is inexpensive, usually less that $50.00 per month, and can be combined with auto insurance or carried with the same company covering the Association's Master policy.
HO6 policies should cover four basic items:
Personal property coverage
Loss Assessment coverage
Loss of use coverage
Property Coverage protects the individual homeowner against financial loss should their property be destroyed or stolen. The perils covered include fire, lightening, windstorm hail, explosion, smoke, vandalism, theft, accidental discharge of water, and losses from numerous other sources. It is also recommended that a scheduled valuable items floater be added for gemstones, diamonds, etc.
Loss Assessment Coverage reimburses the owner for a portion of the association's deductible which is assessed to the unit, including the any roof deductible for wind and hail losses.
Liability coverage includes bodily injury to a guest inside your home or water loss causing damage to an adjacent unit. It is encouraged that all members carry this crucial coverage.
Loss of use coverage provides additional living expense should you need to relocate to an apartment or hotel due to a covered loss such as a fire. If the unit is rented, the coverage pays the owner a fair rental value and allows you to continue making mortgage payments.
Contact your insurance agent or Moody Insurance to review your personal insurance program. Contact Jacqueline Moore at 303-824-6600 or JMoore@MoodyIns.com.