Last week’s post, An Introduction to Condo Insurance (see https://wiseinsurancegroup.com/an-overview-of-texas-condo-insurance/) addressed how to determine the amount of condo insurance needed and what it covers. There’s more to a condo policy, however, than covering the finish out of the home and your personal property or contents. There are other coverage items to consider including personal liability, medical coverage, deductibles, and home owner’s assessment.
Personal Liability: Personal liability coverage protects the homeowner if someone comes into the home, invited or not, is hurt, and sues you for negligence. It’s used in instances where you’re responsible or legally liable, for bodily injury or certain types of property damage to a person who’s not a member of your household. Personal liability limits usually start at $100,000 and go up to $500,000 with the difference in cost being nominal.
Medical Coverage: Medical coverage is designed to cover medical expenses if someone is hurt on the property, invited or not. It does not cover the homeowner or anyone who lives in the home. The limits of coverage usually range from $1,000 to $5,000 with a minimal difference in cost for each $1,000 increment.
Medical coverage can be used whether or not the homeowner is legally liable for the injury. It may be used in a variety of instances including medical expenses incurred to take someone to the hospital to be examined after a fall, stitches, or even a run to the dentist because a tooth was knocked out. Other covered costs include x-rays, nursing care, and even the fee charged for an ambulance.
Deductibles: Unlike home insurance for a single family home that has at least two deductibles, one for wind and hail, and one for all other perils, condo policies usually only have one for all other perils. The only exception is condos along the Texas coastline will also have a hurricane deductible which only applies to damage caused by a named storm.
All other perils is usually specified as a dollar amount such as $1,000, $2,500, etc. It covers a number of claim types including damage caused by fire, smoke, water leaks, theft, vandalism, falling objects, etc.
Home Owner’s Assessment: This is one coverage I add to any home (condo, townhome, or single family) which has a home owners association. Since condo insurance only covers from the sheetrock in, the owner is not technically responsible for the roof if there’s a hail claim, or the building’s structure if there’s a fire. It’s pretty common, though, for condo owners to be assessed to help with repairs in events like this.
Condo assessment coverage pays up to a specified dollar amount such as $5,000, $10,000, $25,000. A claim can be filed by the owner when they are assessed for a common shared repair such as a roof, part of the structure, etc. Most condo policies specify this is for a claim related assessment, not an assessment to upgrade the lighting in the lobby, replace an elevator, or some other building upgrade. The owner would be responsible for those types of assessments.
In addition to these coverage items, there are many more including scheduled items (jewelry, artwork, etc.), sewage backup, glass coverage, etc. Which ones will you select? Share the options you feel are important, along with your questions, comments, or experiences with me on our Google +, Facebook, or LinkedIn pages. I’d love to hear from you!
