Are Condo Unit Owners Covered By Their Association?

If you own a condo in the state of Michigan, chances are you are charged exorbitant association fees each month. Condo association fees are charged and applied to maintaining the property and also for paying for overhead costs. One thing paid for by your monthly dues is Michigan insurance for the complex itself. This type of insurance is commonly referred to as a master association insurance policy. When you are purchasing your condo or refinancing the unit, you are not required to provide proof of insurance because the master policy will provide protection for the interests the mortgage company are taking on. While the mortgage company's interests are protected, you should be asking yourself if yours are. Understand how the master association policy works and how you can supplement protection.

An association policy is designed to provide coverage for the building structure, common areas, and the liability of the complex owner. An association policy will not provide personalized coverage for your unit and will only cover the foundation and walls of each unit if they need to be rebuilt because of a covered loss. Many condo unit owners assume they are covered. This assumption could put the burden if paying for your interior rebuild on your shoulders. If you cannot afford to pay hundreds of thousands of dollars to replace your belongings and rebuild your condo, you should invest in Condo Unit Owners insurance.

A condo policy is a personal lines policy that will provide coverage for damages excluded in a master association policy. Condo Michigan insurance for unit owners will provide coverage to rebuild the property from the walls in. This means that if the condo where to be deemed a total loss, the insurer would pay for the drywall, paint, flooring, fixtures, cabinetry, and any other attached applications. You can select the amount of Building Property coverage you want to invest in as long as you can afford the premiums.

A condo unit owners policy will also provide coverage for your personal belongings. If a loss occurs and you lose everything in your home, chances are you cannot afford to pay to replace everything out-of-pocket. When you begin cataloging all of your belongings, they certainly add up. Be sure to take a video of your home and keep receipts for expensive items.

A master association policy for condos in Michigan will not pay for damages to the inside of your unit, or to replace personal property. If you want to stay protected, you should invest in your own condo Michigan insurance. Set an appointment to receive a quote with your auto insurance agent and qualify for multi-line discounts. You could end up saving so much on your vehicle insurance; it pays to protect your home.





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