Condo owner required to present proof of insurance?
My condo’s management company just sent out a letter to owners demanding proof of homeowner’s insurance with $500k liability and $2mm umbrella. Is this reasonable/normal/acceptable? I’ve never heard of a management company or board demanding it before.
My condo’s management company just sent out a letter to owners demanding proof of homeowner’s insurance with $500k liability and $2mm umbrella. Is this reasonable/normal/acceptable? I’ve never heard of a management company or board demanding it before.
Recently, Banks and Condo/Co-Op associations have been requiring that unit owners have an individual policy. The $500,000 liability is understandable. That covers your personal liability. I have never heard of the $2 million umbrella requirement for an individual unit owner. I can understand them requesting a basic policy to cover your contents and liability since the Condo’s master policy only covers the structure and building’s liability. It is to your benefit to get a condo owner’s policy to protect your apartment and contents. A basic policy won’t cost much. The umbrella will be more expensive, though. If you’d like quotes, feel free to call me.
William Smoltino
Narrows Insurance Agency, Inc.
718-745-1500
They must have gotten this idea from Obama’s healthcare plan.
Liability, sure. But the $2mm in umbrella can cost close to $1000 a year.
Don’t know if it’s typical for a condo, but it’s standard for co-op. Our co-op requires annual proof of liability coverage of at least 500k. It’s pretty inexpensive – our Traveler’s policy costs us about $400/year and is pretty comprehensive.
Routine in co-ops to make you show proof of insurance annually — either umbrella/liability or flood or both. I’ve always understood this covers if you, say, leave your tub running or stove on and ruin the neighbors place below you. It doesn’t cost much and you want your neighbors to have insurance.
Ive never heard of this. First thing you need to check is the offering plan and bylaws to see if it is mentioned.
Typically the condo will have a policy on the building itself with umbrella liability. Having a $500K policy on a condo does not make sense, especially if the condo board has a policy on the building. Typical condo policy is for contents only. If you $500K in contents I’d love to come hang out at your place some time…