Windsor Gardens Life

Windsor Life Page 4 From Rebecca Zazueta, WGA Business Manager Property Insurance Unit Coverage The Windsor Gardens Association insures the basic structure of the building and originally-installed items. However, original kitchen cabinet and countertops, flooring and appliances are not common due to the age of the property. In many cases units have been updated by previous or current owners. If updated, the unit owner is responsible for insuring these components. Every owner is advised to purchase an HO6 policy for betterments and improvements and personal property within their unit. So how much property insurance is enough? All HO6 policies offer an amount of property coverage, Coverage A (Dwelling), which includes window treatments, improvements and betterments made since original construction. You may have $20,000, $50,000 or even $100,000 in coverage. It is important to talk with your insurance agent to identify the amount of coverage that is appropriate for you. If there was a major loss in your unit, like a fire or substantial water loss, your property coverage would likely cover the replacement of the following unit components, if they were destroyed: f f Kitchen and bathroom cabinetry and countertops f f Appliances f f Medicine cabinets, shower door / enclosure, tile walls in kitchen and bathroom(s) f f Flooring f f Lighting fixtures f f Plumbing fixtures, i.e., bathtub, toilet, sink, faucets, garbage disposal, shower head f f Texture and paint on the drywall Flooring alone can be very expense to replace. The replacement of a complete kitchen, i.e., cabinets, countertops and appliances can add up quickly, so it is important to evaluate how much money you would need to replace all of these components if they have been updated since original construction. Also talk to your agent about the cost of demolition and removal of damaged components. For example, if there was a fire in your unit, and it destroyed your cabinets, would your insurance cover the cost to remove the damaged cabinets? Personal Belongings Coverage In addition to the above listed unit components, you must also determine how much personal property insurance to obtain. Coverage C under your HO6 policy covers personal property. Personal property is everything that would fall out of your unit if it was turned upside down. Things like your bed, sofa, television, computer, clothing, Association & Owner Insurance Policies What You Need to Know From Pat Wilderotter, WGA Insurance Agent Annually your board of directors purchases insurance for the condominium association that covers the buildings, personal property of the association, general liability on the common areas, fidelity coverage and director’s and officer’s coverage. As unit owners, it is important that you maintain your own insurance to cover unit items that are your responsibility as detailed in Windsor Gardens Amended and Restated Condominium Declaration – your personal property and liability exposures that are not covered under your association’s master insurance policy. If there were a covered property loss at Windsor Gardens, the association’s policy would rebuild the basic structure to original specifications minus applicable deductibles. Any improvements done to the interior of the units since original construction are the responsibility of the owner(s) to insure. Under Section1(A) in the InsuranceDeductiblePolicy, theassociation’sbasicpropertydeductible can be assessed to an owner(s). For 2019, the insurance deductible is $25,000. In addition, your property policy has a 2% deductible of the building value for wind/hail. A buy-down policy to cover this deductible would be an excessive cost that would mandate raising the individual assessments of all owners. As a result, in the event of a total wind/hail storm, owners could be assessed approximately $3,000. Each owner needs to make sure their individual HO6 (condominium owners policy) or their landlord’s policy (if they are renting the unit out) includes loss assessment coverage or property coverage to meet these deductibles. This coverage should be a minimal cost annually. In accordance with Section 6.6 of the Windsor Gardens Amended and Restated Condominium Declaration, in the event that common elements need to be maintained, repaired or replaced due to an owner (or their guests, etc.) negligence or willful act or omission, especially but not limited to water overflowing from a tub, or water damage from a dishwasher or hose, then the expenses incurred by the association shall be the personal obligation of such owner. When obtaining an individual unit owner’s insurance policy, if living in the unit, you need to obtain an HO6 (condominium owner’s) policy. The HO6 should include these four basic coverages: unit coverage, personal property coverage, liability coverage and loss assessment. The unit coverage should cover items specified in the amended and restated declaration as the responsibility of the unit owner including window treatments and any improvements/betterments made since original construction. Personal property coverage should include all furnishings and clothing. This coverage should be written on a replacement cost basis. The unit owner needs to purchase liability insurance for anything that occurs within their unit. When someone enters your unit, the liability exposure becomes yours. Finally, loss assessment coverage applies if you are assessed by the association for an underinsured covered claim or the deductible portion of a claim. Insurance coverage is an important component of living in a condominium association. Owners should have a basic understanding of individual owner’s insurance as well as the association’s insurance. There is an association master insurance policy, which is required per the legal documents of the association, and it is paid for as part of your monthly HOA assessment. There is another policy that owners obtain individually, a condominium owners policy, which is commonly referred to as a HO6 policy. All owners are strongly encouraged to maintain this policy. The following document provides basic insurance information and in no way establishes insurance coverage determinations. Individual owners should consult their own insurance professional with regard to advice about any insurance they may need. A Letter from the Association’s Insurance Agent A Closer Look at the Components of Your HO6 Homeowners Insurance YOUR HO6 INSURANCE POLICY continued on page 5 LETTER FROM ASSOCIATION INSURANCE AGENT continued on page 5