What Is Condo Insurance California?

Condo Insurance California is a type of insurance that could cover condominium unit owners, against covered losses. A condominium is a commercial or housing unit in a multi building complex. Condominium unit owners individually own the interior of their unit. In addition, they also own common properties, including elevator, roof, hall and other properties, that are jointly owned by other unit owners. The unit owners, share expenses for the maintenance of the common properties through the Condominium Association. In addition, condominiums often have a golf course, club house, pool, and other common amenities, and the maintenance for this is often managed by the Home Owners Association.

What Is Condominium Association of condo insurance california?

The Condo Association is run by a board of directors, that are are elected by the condo unit owners. The association’s primary responsibility is to maintain and repair the common areas. In addition, this association is also in charge of handling the association’s master insurance. They also set the regulations and laws, all owners must follow, and they are also in charge of collecting sufficient money to maintain the common areas. However, some condominium associations hire a management company, to do all the work, and carry out the day to day operation task. The Management Company will act on behalf of the association and will carry the obligation of handling master insurance.

What Is The HomeOwners Association of condo insurance california?

Homeowners Association also is known as property owners is an organization that maintains common areas of a complex. This organization maintains rules, and regulations that every homeowner must follow. These regulations are made to help improve and protect the value of the properties. Homeowners association collects assessment fees that can help improve and maintain common amenities, such as the landscaping. In addition, it also maintains the roads, spas, pools, trash, and recycling, and security. Homeowners Associations also maintains and reserve payments, for the future repairs of roofs, painting and other common areas, that are outside the condominium complex.

Coverage Of Condo Insurance california

DWELLING (COVERAGE A)

This coverage of condo insurance California covers the interior dwelling of the insured condo unit owner. This will pay for the alterations, attached appliances, improvements, and betterment. In addition, it can also cover the fixtures. It can also provide coverage to structures that are owned by the policyholder and is inside the same premises. The basic limits for this coverage are often $5,000. However, condo owners could increase the limits, as they are legally responsible for ensuring its property more than its cost.

Exclusions of Coverage

The land is typically not applicable for coverage, in any property policy.
Units that are held for rent.
Structures that are for business purposes, unless used as a private garage.
Structures that are used to store business properties.

Eligibility Of Dwelling

It can be insured, even if the title has not passed yet to the occupants until the contracts are satisfied.
The dwelling must be insured to at least 80% of its replacements cost.
Dwellings that are under construction can also be eligible for the coverage. Only if the policy is issued in the name of the owner.

Other Structures (Coverage B)

Condo insurance does not provide coverage for other structures.

Personal Property (Coverage C)

This coverage covers the personal property of the insured and also the properties of the 2nd insured under the policy. In addition, it can also cover the properties of the others that are listed on the policy. This can cover the properties of the insured, including its furniture, clothes and other properties. However, coverage for the luxurious belongings of the insured like jewelry and other specific property of the insured has dollar limit only.

Eligibility For The Coverage Of Personal Property

The property must be for personal use only, and not for business purposes

Loss Of Use Coverage (Coverage D)

Loss of use coverage for condo insurance is slightly different from other insurances. Condo unit owners can file a claim even though the losses do not directly hit the unit of the insured. The loss of use claim in this policy is payable, as long as the damages are to the building, that contains the insured property. The insured can collect the claim payments if they are legally displaced from their unit, and until the repairs are done. The payments for this coverage are subject to per day limits that the insured chooses.

Liability (Coverage E)

Bodily Injury

This coverage pays for the liability of the insured against a third party person’s bodily injury claims. Suppose that the pet of the insured bites one of the insured’s neighbors. Furthermore, the neighbor of the insured files a claim against the insured and demands to pay for the injury. This coverage will pay for settling the claims against the insured, and its legal obligation to pay for the injury of the other person.

Property Damage

This would pay for the legal obligation of the insured, against property damages claims from a third party person. This could settle the claims against the insured and also pays for the cost of damages to the other person’s property.

Loss Assessment Coverage

An unendorsed condo insurance policy provides $1,000 coverage for loss assessment. This loss assessment coverage pays for the assessment of the condo association, from the damages that are due to covered perils.