Category Archives: Condo and Co-Op Insurance

Living in a Condo or Co-op building would be chaos without the leadership of a condo/co-op board of Directors and/or Officers to ensure the building’s maintenance, repairs and renovations are up-to-date and protect condo-owners, co-op shareholders and building residents – and the boards themselves – from any possible liability. Condo/Co-op Associations need insurance coverage that includes Fire and Liability Insurance for the building’s common areas, Directors’ and Officers’ Liability Insurance, Bonds, Umbrellas, Flood and Workers Compensation.

At  Muller Insurance, we insure a large percentage of the condo associations in the  New York/New Jersey Metropolitan Area and we are familiar with your needs. Our rates are very competitive and in some cases we can include the Directors and officers (D&O) liability in one policy to save time and money.

It is up to the Condo Association to secure a Master Policy that covers the building and all materials that make up the condo/co-op building. These policies are usually “special form” coverage  which includes losses from fire, lightning, hail, wind, vandalism, sprinkler  leakage, smoke and building collapse. Master Policies are normally written on Business Owner Policy aka BOP or Commercial Package Policy aka CPP. Some  exclusions apply like acts of war, earthquakes, and flood.

It is real important that condo or co-op associations purchase insurance requested in the by-laws insurance section.

Master Policy Coverage can include:

Replacement Cost – Pays for the cost of replacement usually with a stated amount limit (for example: up to 125% of original value) (Note: most condo by-laws require that association building insurance must be replacement cost in case of  a loss).

Actual Cash Value (ACV) – Pays for the value at the time of the loss. This usually includes depreciation and usage deductions.

Guaranteed Replacement Cost – Pays with no maximum limit. Deductibles usually apply to a covered loss.

Condo/Co-op Association Insurance also includes liability coverage for the covered premises. This liability coverage protects the association from a law suit brought against it as a result of an accident or injury that may occur on or in the condo property.  Unit owners need to protect their personal liability by purchasing a Homeowner 6 policy which will cover their interior walls, betterments and improvements, and contents and personal liability. The master policies liability coverage will not cover the owner or tenants’ liability inside the condo or co-op unit.

Directors and Officers Coverage (D&O): The condo association’s directors and officers are also exposed to law suits for their activities pertaining to the management of the association’s business. Directors and Officer’s coverage, usually known as D&O Coverage should be included in master policies. This coverage protects the personal finances and assets of the directors and officers in the event of a law suit.

Other coverages available include:

Boiler and Machinery: Provides coverage for the heating and cooling equipment that services the building. Losses due to wear and tear and age are not covered.

Fidelity Bond: Provides coverage for the coverage association should one of the officers steal money from the condo association.

Terrorism: Provides coverage to your property in the event that it is destroyed by a certified terrorist act.

Flood: Provides damage to your property from rising water. This is a standard exclusion on all policies and a policy must be purchased separately.

Earthquake: Provides coverage for your property if it is damaged by an earthquake. This coverage is a standard exclusion on all policies and must be purchased.

Medical Payments: Provides medical payments for someone that gets hurt on your property and just wants you to pay their medical bills.

Sometimes the association also acts as an employer for work such as painting, minor repairs and snow removal, etc. Employment Practices Liability insurance should be obtained to protect the association in case a suit is brought against them as a result of the work performed.

If you are interested in more information on condominium and co-op coverages, we have information on our website: www.mullerinsurance.com.  Click on Condo Insurance.

The Condo/Co-op Association’s Master Policy should be reviewed every year by board members, the building’s management company and a licensed insurance professional. At Muller Insurance, we handle many Condo/Co-op Associations’ policies and can help you secure complete coverage that protects the association, condo owners and co-op shareholders.

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 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.

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.

One of the most thrilling things ever is the day you buy your first condo. No longer renting to pay your landlord’s mortgage, you now have a mortgage of your own and the responsibilities that go with it. If you purchase a condo or co-op, the bank will require insurance to protect its investment in your home. 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.

When purchasing Condo/Co-Op Insurance, you will need two separate policies to protect your investment: Your personal insurance policy that provides coverage for your condo interior,  personal possessions, structural improvements to your apartment, and additional living expenses, or if you are the victim of fire, theft, or other disaster listed in your policy. And a master policy provided by the condo/co-op board. This covers liability and physical damage to common areas you share like the roof,  basement, elevator, boiler, and walkways.  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.

When talking with your insurance agent, be sure to ask about these 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 loss.

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. At Muller we offer flood insurance through Selective, Travelers, Chubb, and Fidelity National.

Floater or endorsement. If you own expensive jewelry, furs, or collectibles, you should consider getting additional coverage since there is generally a $500 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 central station smoke, fire, burglary alarm system that rings at an outside service. Ifyo u insure your unit with the same company that underwrites your building’s insurance policy, you might also get an additional reduction in premiums.

(FYI:  CHUBB Insurance offers a combination discount on auto and condo insurance. You may be entitled to Chubb’s Auto Premium Companion Credit of 20 percent if both your vehicle(s) and condo(s) are insured with Chubb. And if you have continuous coverage, you may be entitled to an additional 10 percent credit. )

Muller Insurance is one of the only offices that offers condo interior policies on condo units that are rented out. Besides covering your fire and liability, we can cover your loss of rental income. We offer all the coverages that your condo association needs including: Fire and Liability for the common areas, Directors and Officers Liability, Bonds, Umbrellas, Flood, Boiler and Machinery, Earthquake, Sewage Backup, and Workers Compensation.

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 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.