BonnieE (Illinois)
Posts: 338
Posts: 338
Posted:
Hi everyone,
First, I made a mistake posting my questions to another thread on 8/1. I am sorry, Missy, for posting my questions to your thread (re condo insurance dated 7/3). I was reading it as it had some great information and should have started a new post for my questions.
So, here goes. I have a few insurance questions. I live in a condo and have an HO6 policy. It is my understanding that the HOA policy covers “everything attached” as originally built (building, pipes, cabinets, flooring, counters, appliances, sinks, etc.). The HO policy covers personal property (“unattached” items) – furniture, decorative items, clothing, appliances not included in the original package (washer, dryer in my case), etc. Is my understanding correct so far?
It is also my understanding that I need coverage for those items which I have replaced with upgraded replacements (under building property coverage?) – windows, sliding door, flooring, appliances, counters, sinks, lights – since the HOA policy would only cover the cost of the original. For example, say the original sliding door cost $1,000 and I replaced it with a better quality door costing $2,500, I need coverage for the $1,500 difference. Otherwise, should there be a catastrophic loss or damage, without that coverage, I would receive the original sliding door, not the one I put in. Am I correct in this?
Next, what about the limited common elements for which my HOA has a policy stating the HO is responsible for - who covers the deck, patio, chimney, garage door, front stoop, etc. – should there be a loss? Do I need to cover this under building property coverage?
Finally, my insurer offers extended protection coverage. According to my agent, it covers damage to your unit for which the HOA would normally cover, but the BOD decides not to cover the loss because the loss is less than the HOA policy deductible. An example given – there is a fire to my unit (not my fault) and repairs covered by HOA policy would cost $4,500. But the deductible is higher, so BOD decides that HOA is not responsible for a loss to only my unit. Therefore, my insurance company recommends this type of coverage to a HO. Can the BOD make a decision to not pay for such repairs? Is this common? Is this coverage commonly purchased by HOs?
I did a quick check of the IL Condo Act. It states:
c) Deductibles. The board of directors of the association may, in the case of a claim for damage to a unit or the common elements, (i) pay the deductible amount as a common expense, (ii) after notice and an opportunity for a hearing, assess the deductible amount against the owners who caused the damage or from whose units the damage or cause of loss originated, or (iii) require the unit owners of the units affected to pay the deductible amount.
Which leaves me somewhat confused - the BOD can make the repairs and require the HOs affected to pay the deductible – do I understand this correctly?
Finally, Glen, in your response to Missy dated 7/4, you provided excellent information. I have 2 questions: What is an “all risk contract”? What is “loss assessment coverage”?
One final question: do BODs typically require proof of insurance from the HOs? According to my agent, other IL BODs require proof. We have not requested proof of insurance from HOs, but am now thinking we should request it.
Thank you for any help you can provide!
Bonnie
First, I made a mistake posting my questions to another thread on 8/1. I am sorry, Missy, for posting my questions to your thread (re condo insurance dated 7/3). I was reading it as it had some great information and should have started a new post for my questions.
So, here goes. I have a few insurance questions. I live in a condo and have an HO6 policy. It is my understanding that the HOA policy covers “everything attached” as originally built (building, pipes, cabinets, flooring, counters, appliances, sinks, etc.). The HO policy covers personal property (“unattached” items) – furniture, decorative items, clothing, appliances not included in the original package (washer, dryer in my case), etc. Is my understanding correct so far?
It is also my understanding that I need coverage for those items which I have replaced with upgraded replacements (under building property coverage?) – windows, sliding door, flooring, appliances, counters, sinks, lights – since the HOA policy would only cover the cost of the original. For example, say the original sliding door cost $1,000 and I replaced it with a better quality door costing $2,500, I need coverage for the $1,500 difference. Otherwise, should there be a catastrophic loss or damage, without that coverage, I would receive the original sliding door, not the one I put in. Am I correct in this?
Next, what about the limited common elements for which my HOA has a policy stating the HO is responsible for - who covers the deck, patio, chimney, garage door, front stoop, etc. – should there be a loss? Do I need to cover this under building property coverage?
Finally, my insurer offers extended protection coverage. According to my agent, it covers damage to your unit for which the HOA would normally cover, but the BOD decides not to cover the loss because the loss is less than the HOA policy deductible. An example given – there is a fire to my unit (not my fault) and repairs covered by HOA policy would cost $4,500. But the deductible is higher, so BOD decides that HOA is not responsible for a loss to only my unit. Therefore, my insurance company recommends this type of coverage to a HO. Can the BOD make a decision to not pay for such repairs? Is this common? Is this coverage commonly purchased by HOs?
I did a quick check of the IL Condo Act. It states:
c) Deductibles. The board of directors of the association may, in the case of a claim for damage to a unit or the common elements, (i) pay the deductible amount as a common expense, (ii) after notice and an opportunity for a hearing, assess the deductible amount against the owners who caused the damage or from whose units the damage or cause of loss originated, or (iii) require the unit owners of the units affected to pay the deductible amount.
Which leaves me somewhat confused - the BOD can make the repairs and require the HOs affected to pay the deductible – do I understand this correctly?
Finally, Glen, in your response to Missy dated 7/4, you provided excellent information. I have 2 questions: What is an “all risk contract”? What is “loss assessment coverage”?
One final question: do BODs typically require proof of insurance from the HOs? According to my agent, other IL BODs require proof. We have not requested proof of insurance from HOs, but am now thinking we should request it.
Thank you for any help you can provide!
Bonnie