Thanks for checking back in. It’s time to answer another insurance question. The staff saw the last question that we answered and they said, “Hey, you might want to think about using a filter.”
So let’s look at the question. This came in. How much insurance should I have for a condo? Great question. That’s going to vary. So first of all, most condominium town home communities will have an HOA that has a master policy covering the dwelling and the roof. The homeowner would be responsible just from the walls in. And I’d say, generally speaking, you’re going to be around 55 to 70 dollars a square foot and up. It depends on your location and the finishes that you have in the building or in your home itself.
Another thing to consider, it’s becoming more and more popular, is loss assessments. So let me explain that. Let’s say a hailstorm comes through and damages the roofs on several buildings. Causes $400,000 worth of damage. There may be a $500,000 deductible on the master policy, which means the HOA has to come up with the $400,000 to make the repairs. If they only have $200,000 available, they’re going to take the remaining $200,000 and divide that up among the number of homeowners and they’re going to send you each a bill. So it’s important to have that loss assessments protection built into your policy. So talk to your agent or give us a call and we can help you through it. Thanks again for the question.
Call Conaway Insurance Agency in Aurora CO at (303) 752-1441