RESPONSIBILITY OF UNIT OWNERS

Each homeowner should purchase a Condominium Unit Owner’s policy, referred to as an HO-6.  This policy should cover all personal contents, loss assessments, personal liability, and the following, including, but not limited to:

Personal Property Coverage – It is suggested that unit owners discuss these values with your Personal Insurance Agent. Purchase personal property coverage equal to the cost to replace all of your furniture, clothing, electronics, washer & dryer and any non built-in appliances such as refrigerator, stove, microwave.

The following endorsements can be bought in addition to your basic policy.

  • Replacement Cost Coverage – today’s value
  • Special Perils -  instead of Named Peril coverage
  • Earthquake - The Association policy has a 5% deductible per building.
  • Flood coverage – A stand-alone policy can be purchased.
  • Backup of sewers, drains, & sump pump failure - The Association’s policy has a 10,000per unit deductible.
  • Personal Liability - Purchase at least $100,000 The Association policy does not provide Personal Liability coverage for unit owners or tenants.
  • Medical Payments
  • Loss Assessment Coverage - Increase to a minimum of $10,000.  This can cover your monthly assessments in the event of a covered loss. Include the peril for earthquake.
  • Other Endorsements – ask for quotes to schedule your valued personal property such as jewelry, silverware, glassware, fine arts, antiques, cameras, guns and various collectibles. Appraisals are usually necessary.
  • Request insurance premium credits for higher deductibles, discounts for multi-policies, age, burglar and fire alarm systems, smoke detectors, dead bolt locks, and fire extinguishers.

Improvements & Betterments - It is suggested that unit owners should purchase at least $10,000 of coverage.  A minimum of $10,000 is necessary to provide the initial amount (Association Deductible) for which you are responsible. Also purchase enough of this coverage equal to the cost to replace upgrades to yourunit, such as: finished basements, floor/wall coverings, and cabinets. Also upgrades to built-in appliances such as your refrigerator, stove, microwave, dishwasher, disposal, shower & tub. Likewise upgrades to your furnace, hot water tank, windows, doors and outside storage sheds should  also be covered. Upgrades to your unit are not typically covered by Association Policies. Upgrades would also include materials better than the original construction used by the builder or a finished lower level’s walls and flooring, which are not usual and customary to original construction.

It is imperative that you discuss YOUR responsibilities with your Agent due to the        greater Association deductible amounts that are your responsibility.  You must confirm that your HO-6 policy will cover, as a MINIMUM, all upgrades since  builder sold to first owner and damage to the inside of your unit,  up to your Association’s $10,000 Deductible.

RESPONSIBILITY OF THE ASSOCIATION

The insurance policy, which is purchased by Your Association, provides property coverage for the buildings, fences and common area fixtures.  Unit owners are responsible for the first $5,000 in interior damage, which is the policy deductible, with the exception of earthquake, which is settled with a 5% per building deductible.  Covered property losses are settled on a replacement cost basis subject to the above stated deductibles.

The following, are covered, subject to replacement with like quality at original construction. Improvements, upgrades and alterations installed inside a unit, by any unit owner, which are not standard to original construction are not included and must be covered by the unit owner’s HO6.

  • Built-in cabinets (kitchen) are covered unless the cabinets are improvements installed by a unit owner, which are not usual and customary to original construction.
  • Floor coverings, wall-to-wall carpeting, linoleum, tile, etc., are covered unless the floor coverings are improvements and alterations installed by a unit owner which are not usual and customary to original construction.  Not covered are upgrades including hardwood flooring, the upgraded portion of wall to wall carpeting, ceramic or slate in entryways.  Oriental, and other area rugs are not covered; they are personal property.
  • Plumbing and electrical fixtures unless the fixtures are improvements and alterations installed by a unit owner which are not usual and customary to original construction.  Examples include high-end chandeliers or ceiling fans, upgrade bathroom fixtures such as brass faucets, whirlpool tubs, etc.
  • Built-in appliances such as dishwashers, ranges, and disposals are covered unless the appliances are upgrades or improvements installed by a unit owner, which are not usual and customary to original construction. Stoves and refrigerators are freestanding and are not covered.
  • Coverage is provided for back up of sewers, with a $10,000 deductible per unit.

All covered property losses are settled on a replacement cost basis subject to a $10,000 deductible per unit payable by the unit owner with the exception of earthquake, which is settled with a 5% per building deductible.

  • These deductibles should be covered by your own personal HO-6 policy under “Dwelling/Improvements and Betterments Coverage” and by adding earthquake coverage, to include earthquake loss assessment and earthquake property coverage. 

It is imperative that you discuss YOUR responsibilities with your Agent due to the greater Association deductible amounts that are your responsibility.  You must confirm that your HO-6 policy will cover, as a MINIMUM, all upgrades since builder sold to first owner and damage to the inside of your unit,  up to your Association’s $10,000 Deductible.                                                                                                

RESPONSIBILITY OF A UNIT OWNER – RENTING OR LEASING A UNIT

If you own a unit and are renting or leasing the unit, please review the Responsibility of a Unit Ownerfor basic information on coverage you should purchase. In addition, you should purchase the following, including but not limited to:

  • Personal Liability insurance to cover your exposure as owner of the Unit.
  • Loss of Rents or Fair Rental Value coverage, which can protect your rental income, if a covered loss should occur.
  • Protect any of your personal property left in the unit.
  • Require your tenant to maintain their own HO-4 Renters’ policy to protect possible liability or medical payments that could arise.  They should also purchase “Tenant’s Improvements and Betterments coverage if they have made changes to your unit that would fall under the Association’s $10,000 deductible.

RESPONSIBILITY OF A UNIT RENTER

You should purchase an HO-4, Tenant’s Policy. Tenants are responsible for insuring: 

  • Your own personal property
  • Personal liability and medical payments insurance
  • Loss of use
  • If you are under a land/purchase contract with the owner, loss assessment coverage should be purchased.
  • Purchase “Tenant’s Improvements and Betterments” coverage if you have made changes to your unit that would fall under the Association’s $10,000 deductible.

The material presented herein has been abbreviated to give you a clear broad understanding of coverage. This summary is not all-inclusive nor does it alter or waive provisions of the actual Insurance contract.  Community Association Insurance & Risk Management is the servicing agent for the Association.  Please contact us at 513-936-1270 if you should have any questions concerning Association insurance coverages.

Owners should review their community Declaration and By-Laws. These documents establish your rights and responsibilities as a homeowner.  These documents are available at a nominal cost from your Association’s Managing Agent if you do not have them.

All rules and regulations are set up to help maintain the community and good relations between neighbors.

PLEASE BE ADVISED THAT ANY INCIDENT OF A POSSIBLE CLAIM AGAINST THE ASSOCIATION’S POLICY MUST BE PRESENTED TO THE ASSOCIATION.