insurance deductible explained
Condominium Insurance
Are you really sure?
By Ronald R. Reitz, CPPA
Are you properly insured against fire, theft or water damage to your condo or house? If disaster happens, who will repair the damage? Does your condo insurance cover damage from inside the condo or is that to you?
When most people first buy a condo or home to call your insurance agent, explains that they are buying a condominium unit, and must provide proof of insurance to your lender. The agent provides proof of insurance to the mortgagee in the form of an insurance certificate or other proof of insurance and the transaction is completed. Usually that proof of insurance relates to the condominium association master policy, not the personal condo unit.
In most cases, however, no difference in coverage for the inside of your condo. Most policies condominium master association only to cover the exteriors and common areas. If you, the owner of the condominium suffer a loss, you most likely will be insufficient – Or not insured at all unless you had an HO-6.
In order to clarify the adequacy of your coverage, you and / or insurance agent need to review the policy master condominium and condominium governing documents (CC & Rs). It is possible that your condo has "wall" coverage of its political masters (now required by Fannie Mae). However, this may be a false sense of confidence in the coverage as "walls" coverage would likely be limited to the replacement Interior accessories with what was originally installed.
So if you have a condominium 30 years old who has recently been updated, with counters granite, cabinets, marble floors, double glazed windows, etc, then only be paid to replace the original lamp – Formica counters, green shag carpet, furniture and low-grade single-glazed windows. However, HO-6 with a replacement cost coverage would ensure that you have coverage for what he had at the time of loss. Equally important, the HO-6 coverage, a likely ensure the condominium master policy association deductible if it is considered the owner of the unit.
Even worse would be to discover his condominium association had only a "wall naked "policy. This means that you have absolutely no coverage for anything in his unit. If you suffer a loss, would be essentially not covered unless they also had an HO-6.
Ron Reitz is president of the San Diego-based Quality Claims Management Corp., a company nationally licensed insurance public provided claim recovery services risk to investors, service providers mortgage, homeowners and businesses. Previously, pioneered the national risk insurance business claims GMAC-RFC (now GMAC ResCap). He is President of the California Association of Public Insurance Liquidators and currently serves on the board of the National Association of Adjusters Public Insurance.
About the Author:
Ronald R. Reitz, CPPA, President of Quality Claims Management,
http://www.qualityclaims.com,
pioneered the National Hazard Insurance Claims business of GMAC-RFC (now GMAC-ResCap). Mr. Reitz left GMAC-ResCap in January 2007 after ten years of managing the Insurance Services group. He is the past President of the California Association of Public Insurance Adjusters (CAPIA) and is currently an officer on the Board of Directors of the National Association of Public Insurance Adjusters (NAPIA)
www.napia.com.
Recognized as a leading expert on hazard claims, he is serving on many industry panels, as well as providing consulting and training services industry-wide.
Quality Claims Management Corporation provides hazard claim recovery services to investors, mortgage servicers, homeowners and businesses. All claims are adjusted by licensed insurance professionals for an equitable settlement and accelerated resolution timelines. Quality Claims is nationally licensed as Public Insurance Adjusters or Insurance Consultants and complies with Department of Insurance Regulations
Contact Ron Reitz at (619) 450-8600 or
www.qualityclaims.com.
Article Source: ArticlesBase.com – Condominium Insurance Are You Really Insured?
Deductibles and Coinsurances
