Homeowner Insurance Options

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Homeowner Insurance Options

There are a number of different insurance polices for your home depending upon your type of ownership.

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Below you will find a list of policy types and a brief description of each. For an explanation of the coverage your Association Master Policy might carry (click here). Please note that these coverages may not apply to your  Association - they are meant as a guideline for you to understand the Master Policy Coverages.

 

For additional details click on the appropriate link below that best describes your specific situation:
You should contact us for an Explanation of Coverages that can be given to your insurance Agent if you are uncertain.

 

1. HO6 Policy - Association covers the building

However, the dwelling coverage is less extensive due to the Association purchasing insurance to cover the building.

Policy Highlights:

Coverage A: Dwelling Coverage: While the Association maintains building coverage for the Association termed “single entity”. The homeowners policy needs to include this coverage and incorporate the additions and alterations, improvements and betterment’s made by the unit owner or previous unit owner. In the event of a covered loss the Association’s policy and homeowner’s policy merge to make the homeowner whole. (Such as sheet rock damage below the Association’s deductible).

Coverage B: Other Structures: Covers other structures on the residence premises, set apart from the dwelling by clear space (e.g. tool shed, detached garage). This also includes structures connected to the swelling by only a fence, utility fence or similar connection.

Coverage C: Personal Property: Coverage is defined as and should include such items as the couch, jewelry, clothes, dishes, etc. (All those things you would take with you when you move).*

Coverage D: Loss of Use: If a covered loss makes the unit uninhabitable, the policy covers the living expense that results.

Coverage E: Liability: Protects the insured should a claim be made or suit be brought for damages because of bodily injury or property damages caused by an occurrence for personal liability within the home. The policy will provide defense and pay damages up to the limit of liability for which the insured is legally liable.

Coverage F: Medical Payments To Others: Will pay the necessary medical expenses incurred or medically ascertained within 3 years from the date of the accident causing the bodily injury within the home.

Loss Assessments is defined as a charge by the Association to each homeowner collectively for their share when such an assessment is made necessary by a loss to the Association.

Important Points:

Homeowners to verify with their agent coverage for water damage, sewer backup and specific

Association deductibles:

• In many policies Coverage C will combine personal property and additions/alterations (improvements/betterments) as one limit. Therefore, this coverage limit must represent the full value of your improvements as well as your personal property.

2. HO3 Policy - You own the building and Contents

This policy provides coverage for both the entire structure as well as personal contents.

Policy Highlights:

Coverage A: Dwelling Coverage: Covers the dwelling on the residence premises shown in the declarations including attached structures (i.e. garage or deck; also items of the structure such as sheetrock)

Coverage B: Other Structures: Covers other structures on the residence premises, set apart from the dwelling by clear space (e.g. tool shed, detached garage).  This also includes structures connected to the dwelling by only a fence, utility fence or similar connection.

Coverage C: Personal Property: Coverage is defined as and should include such items as the couch, jewelry, clothes, dishes, etc. (All those things you would take with you when you move).

Coverage D: Loss of Use: If a covered loss makes the unit uninhabitable, the policy covers the living expense that results.

Coverage E: Liability: Protects the insured should a claim be made or suit be brought for damages because of bodily injury or property damages caused by an occurrence for personal liability within the home. The policy will provide defense and pay damages up to the limit of liability for which the insured is legally liable.

Coverage F: Medical Payments to Others: Will pay the necessary medical expenses incurred or medically ascertained within 3 years from the date of the accident causing the bodily injury within the home.

Optional Endorsements:

• Ordinance or Law: Township codes requiring additional repairs or construction.
• Sewer Back Up: Overflow or backup of sewer drain covers resulting damage.

Important Points:

Loss Assessments is defined as a charge by the Association to each homeowner collection for their share when such an assessment is made necessary by a loss to the Association.

Additional Living Expense: The necessary increase in living expense incurred by you so that your household can maintain its normal standard of living. For example, this would include the increased cost to live in a motel, eat all meals at restaurants, and increased costs to do laundry.

3. Combo Policy - You rent your home

This policy provides coverage similar the HO-3 but the insured has the flexibility to exclude personal contents.

Coverage applies to owners who rent out their unit.

Policy Highlights: Coverage A: Dwelling Coverage: While the Association maintains building coverage for the Association termed “single entity”. The homeowners policy needs to include this coverage and incorporate the additions and alterations, improvements and betterments made by the unit owner or previous unit owner. In the event of a covered loss the Association’s policy and the homeowner’s policy merge to make the homeowner whole. (Such as sheetrock damage below the Association’s deductible).

Coverage B: Other Structures: Covers other structures on the residence premises, set apart from the dwelling by clear space (e.g. tool shed, detached garage). This also includes structures connected to the dwelling by only a fence, utility fence or similar connection. Coverage

C: Personal Property: Coverage is defined as and should include such items as the couch, jewelry, clothes, dishes, etc. (All those things you would take with you when you move). *

Coverage D: Loss of Use: If a covered loss makes the unit uninhabitable, the policy covers the living expense that results.

Coverage E: Liability: Protects the insured should a claim be made or suit be brought for damages because of bodily injury or property damages caused by an occurrence for personal liability within the home. The policy will provide defense and pay damages up to the limit of liability for which the insured is legally liable.

Coverage F: Medical Payments to Others: Will pay the necessary medical expenses incurred or medically ascertained within 3 years from the date of the accident causing the bodily injury within the home.

Loss Assessments is defined as a charge by the Association to each homeowner collection for their share when such an assessment is made necessary by a loss to the Association.

Additional Living Expense: The necessary increase in living expense incurred by you so that your household can maintain its normal standard of living. For example, this would include the increased cost to live in a motel, eat all meals at restaurants and increased costs to do laundry.

Important Points:

Loss of Rents/Fair Rental Value, if the loss makes the unit rented to others or held for rent by you not fit to live in, you will be reimbursed the fair market rental value less any expenses that do not continue while the premises are not fit to live in.

* In many policies Coverage C will combine personal property and additions/alterations (improvements/betterments) as one limit. Therefore, this coverage limit must represent the full value of your improvements as well as your personal property. However, on a Combo Dwelling Policy, this coverage usually represents appliances or built-in upgrades

4. HO4 Policy - You are a Tenant of a Home

HO-4 Tenant policy is designed to cover the belongings and exposures of a tenant.

There is no need for Coverage A dwelling or Coverage B other structures. Contents are all the items the individual brings with them to the unit and belong to them.

Policy Highlights:

Coverage C: Personal Property: Coverage is defined as and should include such items as the couch, jewelry, clothes, dishes, etc. (All those things you would take with you when you move).

Coverage D: Loss of Use: If a covered loss makes the unit uninhabitable, the policy covers the living expense that results.

Coverage E: Liability: Protects the insured should a claim be made or suit be brought for damages because of bodily injury or property damages caused by an occurrence for personal liability within the home. The policy will provide defense and pay damages up to the limit of liability for which the insured is legally liable.

Coverage F: Medical Payments to Others: Will pay the necessary medical expenses incurred or medically ascertained within 3 years from the date of the accident causing the bodily injury within the home.

HELPFUL INSURANCE TYPE EXPLANATIONS

I. PROPERTY COVERAGE

A. “Risk of Direct Physical Loss” coverage (subject to policy limitations) The Association is protected by Comprehensive Property coverage, subject to the standard exclusions such as, but not limited to, earthquake, flood, water seepage, backup of sewers, war, pollution, normal wear and tear and vermin.
B. Replacement Cost restores Association Insured Property to the builder’s original grade in the event of a covered loss.
C. A deductible applies to all property losses. This deductible varies per Association, ranging from $1,000 to $5,000. The deductible for water related losses, including ice damming, may be assessed on a per unit, per occurrence basis. *NOTE: The actual amount of the water damage deductible will vary per association. Wind Deductibles in Coastal Areas are usually 3%-5% of Total Insured Value.
D. The Association’s insurance policy covers the homes with the builder’s standard grade basic features. This includes such items as bathroom fixtures, kitchen cabinets, built-in appliances, basic carpeting, partitioned walls, repairing sheetrock and a sealant coat of paint. You are responsible to insure any decorations, additions, alterations, upgrades or options (such as wallpaper, lighting, painting and finished basements) that are made by you, or a prior owner.

II. LIABILITY COVERAGE

This coverage protects the Association against bodily injury or property damage to others for which the Association becomes legally liable. It is recommended that homeowners purchase insurance to protect themselves from personal liability, as well as for the interior of their home.

III. ADDITIONAL COVERAGE

The Association may also be protected for Fidelity, Workers Compensation and Directors and Officers Liability. For more information concerning these coverages, please feel free to contact our office for details.

IV. CLAIMS

 Any and all claims against the insurance policies held by the Association must first be reported to the Property Manager and/or Board of Trustees.

V. HOMEOWNERS NEED FOR PERSONAL INSURANCE

 In order to complete your insurance protection, you, as a Resident Homeowner, will need to purchase coverage for your personal contents, loss of use, personal liability, loss assessment, and additions and alterations (including decorating, upgrades or options made by you or a prior owner.) This policy is commonly known as a Condominium Homeowners or HO-6 policy. As an Owner-Nonresident, insurance is still necessary. The policy that is needed is a Combination Dwelling Policy. The coverages listed above, as well as “loss of rents” should be included.

We know it is confusing that is why we have an Insurance Specialist on Staff.

As a homeowner under the Acri Management Umbrella we will perform a free analysis of your current insurance policy.


Are you covered - get a free Acri Analysis

Call our Acri Insurance Counselor, Lori Miller at 412-459-0111 extension 123. She will perform a complete review of your needs and evaluate your present insurance coverage. She will make sure your current policy is matching up with your association's insurance policy. Your current agent may not be aware of the particulars of your associations policy. Make sure you are adequately protected. Call Lori or email her today @ lori_miller@acrirlty.com

 

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