Sterling Heights Michigan Condo Insurance What you Need to Know:
Condo insurance may be needed if you are planning on purchase a condo in Sterling Heights Michigan.
Talk to your agent to make sure that you have adequate coverage for your home and belongings. Mortgage companies are starting to require that you have condo insurance and that the coverage on your condo policy has to be at least 20% of your total mortgage.
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 purchase your Sterling Heights Michigan condo insurance policy.
Sterling Heights Michigan Condo Assessments
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.
Sterling Heights Michigan Condo insurance what will be covered:
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. You have two choices when it comes to insuring your personal property you can insure your property for the actual cash value (how much it is worth today) or its replacement value (how much it would cost to replace the item). You will have to pay a little more to get the replacement value coverage.
Most Condo Association policies will also cover the real property (the structure) from the exterior framing inward, but will not cover fixtures or installations within a unit. Features such as kitchen and bathroom cabinets and countertops, fixtures and flooring will need to be covered under the Condo owners policy.
Condo insurance can 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 condo 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.
There is coverage to help to protect you in case of a lawsuit due to a liability claim caused by someone being injured in your home or damage to someones property. This coverage will protect you from the lawsuit and also pay for the cost to defend you even if you were deemed to be not at fault. Liability limits start at $100,000, but additional limits may be purchased.
Please contact our office to answer all of your Sterling Heights condo insurance questions:
A condo insurance policy can be started with a phone call 248-888-1134 or you can click here to start a quote from a local condo insurance agent or to receive more information.