So, you own a condominium and you need coverage, but for what and how much?

As an owner of a condo you have shared walls and shared spaces with your fellow condo owners. The condo association is responsible for the insurance coverage on the shared spaces. It is imperative that you get a copy of your condo associations insurance policy and understand exactly what they cover and what they do not. Some condo association policies cover the walls including the sheetrock. Some condo association policies do not cover the sheetrock/ paneling etc.  Be sure you know what is covered under their policy so you do not buy that coverage on your policy. Other fixed structures like cabinets, wallpaper, flooring need to be covered under your policy. So in addition to your “stuff”, furniture, clothing, electronics, antiques, jewelry etc, do not forget to cover those fixed items.

In the event the condo association has a loss, lets say for instance a hurricane, who covers the damage to common areas? If the recreation center is damaged by a fallen tree or wind, the condo association’s policy will cover the damage up to the limits of the policy. If there is a deductible or the damages exceed the policy limits, then each member of the association will be assessed an equal portion.  You can avoid this assessment if you have a rider on your individual policy called “Loss assessment.” This coverage is usually not expensive and can really be useful when it is needed. Remember, it has to be added to your policy so make sure you ask your agent. Loss assessment only offers coverage up to the limits of your policy and only covers for damages caused by a covered peril; ie storm, fire etc. Often there will be a deductible that applies so be sure to ask about the amount- often $250/$500. Sometimes condo associations will assess condo owners for maintnance issues such as painting, landscaping etc- these are not covered under loss assessment, only perils stated in the policy will be covered.

The East Cooper Insurance Agency recommends that you get a copy of your condo associations policy and a flood elevation certificate for the building your unit is in and let one of our agents consult you on the best possible coverage for your situation.

Philip L. Bradley, Agent

Philip L. Bradley is the CEO of The East Cooper Insurance Agency in Charleston SC. He is a Personal Financial Representative and is licensed in the State of South Carolina in property/casualty and life and health.