Nothing beats that wonderful feeling of accomplishment when you purchase your condominium or co-op. If you have purchased a condo or co-op, and have secured your mortgage with a bank, the bank will require insurance to protect its investment. You may, however, need more insurance to cover your personal items, liability, or fees that may be charged to you regarding shared areas of the building like the lobby. You will need two separate policies to protect your investment:

Your own insurance policy: This provides coverage for your personal possessions, structural improvements to your apartment and additional living expenses if you are the victim of fire, theft, or other disaster listed in your policy. You also get liability protection.

A Master Policy provided by the condo/co-op board: This covers the common areas you share with others in the building like the roof, basement, elevator, and boiler, and walkways for both liability and physical damage. To adequately insure your apartment, it is important to know which structural parts of your home are covered by the condo/co-op association and which are not. You can do this by reading your association’s bylaws and/or proprietary lease. If you have questions, talk to your condo association, insurance professional, or family attorney.

Sometimes the association is responsible for insuring the individual condo or co-op units, as they were originally built, including standard fixtures. The  individual owner, in this case, is only responsible for alterations to the original structure of the apartment, like remodeling the kitchen or bathtub.  Sometimes this includes not only improvements you make, but those made by previous owners. In other situations, the condo/co-op association is  responsible only for ensuring the bare walls, floor and ceiling. The owner must insure kitchen cabinets, built-in appliances, plumbing, wiring, bathroom fixtures etc.

A Condominium Unit Owners Policy insures your items including permanent fixtures such as floors, cabinets, tiling, etc as well as any upgrades made to this items which is part of your unit.  You should know the square footage plus the cost of any recent upgrades when asking for a quote. Your unit owner policy protects your personal property such as clothing and furniture whether on or off premise.  When obtaining a quote please have an idea as to how much coverage is needed for your personal property.

Should a covered loss occur to your unit such as a fire, you may need a temporary place to stay. This coverage is called Loss of Use. Loss of use will cover the cost to maintain your standard of living while your unit is being restored up to the coverage limit at the time of the loss.

Personal Liability will protect you in the event of a suit brought against you due to injuries someone sustained in your unit.  There are different limit options, please ask your agent to provide the different options available. You may also want to ask your agent about the following additional coverages:

Unit Assessment: This reimburses you for your share of an assessment charged to all unit owners as a result of a covered loss. For instance, if there is a fire in the lobby, all the unit owners are charged the cost of repairing the damage

Water back-up: This insures your property for damage by the back-up of sewers or drains. Water back-up may not always be included in a policy. Check to see that it is included.

Umbrella liability: This is an inexpensive way to get more liability protection and broader coverage than is included in a standard condo/co-op policy.

Flood or earthquake: If you live in an area prone to these disasters, you will need to purchase separate flood and earthquake policies. Flood insurance is available through FEMA’s National Flood Insurance Program (http://www.floodsmart.gov/floodsmart/pages/index.jsp). Both flood and earthquake insurance can be purchased through your insurance agent.

Floater or endorsement: If you own expensive jewelry, furs, or collectibles, you might consider getting additional coverage since there is generally a $1,000 to $2,000 limit for theft of jewelry on a standard policy. When purchasing insurance, it is important to find an agent or company that specializes
in condominiums or co-ops. Also don’t forget to ask about all available discounts. You can reduce your rates by raising your deductibles and by installing a smoke and fire alarm system that rings at an outside service. If you insure your unit with the same company that underwrites your building’s insurance policy, you might also get an additional reduction in premiums.

The qualified insurance professionals at Muller Insurance can help you enjoy your new condo/co-op with the peace of mind that comes with knowing your home and family are fully-protected with the right insurance.

About Roger J. Muller, Jr.

Overseeing Muller Insurance’s day-to-day operations and always improving how the company can better serve its clients, Roger J. Muller,  Jr. is a Certified Professional Insurance Agent (CPIA) with 32 years of experience in the insurance industry. He’s a travel agent, Certified Real Estate Appraiser (CREA), Certified Environmental Inspector (CEI), licensed Real Estate Broker and licensed Insurance Agent in the  following states: New Jersey, New York, Pennsylvania, Connecticut, North Carolina, South Carolina, Florida, Maryland, Washington D.C., New Mexico, Arizona, Vermont, Ohio, Delaware, Maine, Georgia, Virginia and New Hampshire. Roger J. Muller, Jr. is a member of Sigma Xi, a lifetime member of the Hudson River Fishing Association, and Shriners-Salam Temple. A graduate of Ramapo College of New Jersey, Muller is a past board member of the Ramapo College Alumni. He has been a member of the Board of the Hoboken Chamber of Commerce since 2000 and served as Vice President in 2010.  He is a New Jersey Notary Public and a member of the Young Insurance Agents, NJ. He is a certified member of  the Hoboken Community Emergency Response Team (CERT) that responds to emergencies like building collapses, flooding and acts of terrorism.