Condominium and in some cases, Townhome owners, sometimes assume that the associations’ master insurance policy is all the coverage that they need for their home. In reality, the master policy for the association only covers the building, not your personal belongings, or any upgrades that you have made to the unit. Upgrades such as upgraded flooring, new cabinets or upgraded appliances or renovations are typically not covered by the Association insurance. In most cases, the master policy doesn’t cover other parts of the building that are considered “exclusive use” or areas used only by you as the owner such as your patio or balcony, the pipes that feed into your unit from the main pipe line or your garage.
Most Las Vegas HOA CC&Rs have specific section that identifies what kind and how much the master policy must cover for the property. Everything else is up to the owner to cover.
All residents need their own insurance for the insides of their units, their personal belongings, and any damage that might be caused by something within your unit (such as a leaking toilet). This policy is commonly known as “HO6” or a condominium owners’ insurance policy and basically covers from the studs of the unit in to include your personal belongings and any upgrades or renovations that you may have in the unit. These policies are available by most carriers nationwide and are well worth the small investment in comparison to the out of pocket expenses that you could be facing if you don’t have proper coverage. Be sure to ask about sewer backups and mold remediation as most policies don’t automatically cover such occurrences and an additional rider may be needed if that is the case with your policy holder.
Remember, the master policy covers the structure of the building as well as common elements such as clubhouses, pools or recreational facilities, not your personal unit!
If you have any questions about specific coverages to meet your needs, we strongly recommend that you contact your insurance provider for additional information and clarification.
If you have any questions, please feel free to contact a member of the Shelter Management Group (SMG) team, we would be happy to help! Contact us at 702 – 818 – 4780 or info @ smghoa.com
Article Authored By: Jamie Collins, Supervising CAM, CMCA, AMS co-owner, Shelter Management Group (SMG)