The most important thing you should know when getting Michigan condo insurance is what does your master policy say? The condo association’s master policy, as well as association rules, should spell out which parts of the complex are insured through the association and which parts are not. This will help you in deciding how much coverage that you will need when you puchase your Michigan condo insurance policy.
Two things you should look for on your master policy that could affect your insurance coverage are.
Condo association insurance typically includes commercial insurance coverage for the commonly shared building and common areas. Such policies typically have an association deductible. If the condo association needs major work or there is major damage to the structure, the condo association will tender the claim to their commercial insurer, and they would get covered for their loss
If there is a deductible on the master policy, that deductible would be assessed against all unit owners. So if there are 5 unit owners, then the deductible would be divided 5 ways. Your condo policy can cover part of this assessment through a coverage called loss assessment. Normally your policy will provide coverage up to $1000 but additional limits can be purchased. This is why you should know the association’s by-laws so you know what the maximum amount is that you can be assessed. There has been a recent trend toward higher condo deductibles on master policies to save money, these deductibles could go as high as $50,000 and you could be hit with an unexpected bill if you don’t know the by-laws.
Owners of condo units do not own the entire complex. Typically, they own their own unit outright and share ownership of the rest of the complex with other unit-owners.
The association will have an insurance policy to cover the areas of the complex that are owned in common as well as the building exteriors and hallways and play areas. The association’s dues that are collected monthly from the unit owners will pay to insure the common areas.
The unit owner will be responsible for insuring everything within the four walls of his or her unit.
The condo association’s master policy or the by-laws will tell which parts of the complex are insured through the association’s policy and which parts are not. These are the areas that the unit owner will need to cover under their policy.
Most association polices come in three broad category types
Condo-Bare walls in
Policies cover all real property from the exterior framing inward, but do not cover fixtures or installations within a unit. Features such as kitchen and bathroom cabinets and countertops, fixtures and flooring are not covered.
Policies will cover fixtures, installations or additions within the interior surfaces of the perimeter walls, floors and ceilings of each unit. These types of policies are not as common as the bare walls in policies.
Combination of the above two so you will need to look at the association’s by-laws to see what the association responsibility is and what your responsibility is.
What is Covered on you Detroit Condo Policy
Detroit condo insurance can help to protect your personal property against fire, lightning, windstorm, hail, explosion, volcanic eruption, riots, aircraft damage, vandalism, vehicle damage, smoke or theft.
This insurance will also provide valuable protection if your home is made unlivable due to a loss. Your policy can pay for another place to live while your home is being repaired.
Your policy can also provide medical payment to others for necessary medical expenses incurred or medically ascertained within 3 years from the date of accident or injury. This coverage does not apply to the insured or regular residents of the household and is $1000, but additional limits can be purchased.
The Detroit condo policy will also help to protect you in case of a lawsuit due to a liability claim caused by a bodily injury to another person or damage to someone’s property. Liability limits start at $100,000, but additional limits may be available to purchase.
Please contact our office to answer all of your Detroit condo insurance questions. A condo policy can be started with a phone call (1-248-888-1134) or you can visit our website Local Detroit Condo insurance agent for more information or to get a quote online.