July 12th, 2009 categories: Condo Knowledge
You May think insurance for your condominium is covered by your association fees. In New Orleans Condos your monthly condo fees are used to fund a building insurance policy. If your unit is robbed or damaged, your building insurance will not provide any coverage for your personal possessions, nor will it offer you any protection from personal liability.
You want to be insured fully then think about all with things from the sheet rock in. Kitchen appliances, cabinets, counters, fixtures, furniture, electronics, upgraded flooring, personnel belongings, clothing, computers, and what ever else you will keep in your Condo.
Most lenders do not require this but many are now starting to make you have the right amount to put your condo back together if disaster strikes. it could be fire, it could be theft,
To protect your belongings and yourself, you need to purchase a personal home insurance policy (type HO-6) that is designed for condos. I asked Ashley Lotz with Eagan Insurance for a couple of questions that everyone may have. You can reach Ashley at 504-836-99663 on her direct line for a quote.
What is an HO6 Policy ? An HO6 policy is a condo unit policy used to protect your investment of the unit owner and provides coverage for dwelling, personnel property, and personal liability.
How much dwelling coverage am I responsible to carry? You should carry up to the replacement cost, or what it would cost to replace all items in the unit new. This could range from $20 to over $50 a square foot depending upon the quality of the items found in the unit.
What is personal liability and why do I need this? The association will carry a master General Liability policy to protect the interest of the common areas of the building if someone were to get injured on the premise. you would need to carry personal liability if an injury would occur inside your condo. Master policies do cover things that happen inside of your unit.
- What are some other coverages that I should ask for when receiving a quote? You should always request replacement cost on contents and loss assessment coverage. Loss assessment is coverage that will pay for your share of any fees that may assessed by the association to cover deductibles or repairs.
- What is the premium for an HO6 policy? The average cost is between $600 and $1200 per year. This of course depends on the amount of insurance and the contents you are covering.