What does condo insurance cover?
Luxury condominium living often includes fabulous amenities, concierge and security services, convenient parking, and of course a spectacular view. Your home may arguably be one of a kind.
Let us imagine for a moment, through no fault of your own, your condo or co-op suffers a severe fire. Perhaps you purchased your home because you enjoy Naples in February, skiing with your family over the holidays in Aspen, or you love living right downtown in the Big Apple. How difficult would it be to find a comparable standard of living in your community while your home was under repair? At what cost? What other obstacles might you face in the interim? How quickly could you find a realtor? Would you need to board your beloved family pet until you found a permanent residence? Do you need to snag a new boat slip? Would meal planning or a longer route to work inconvenience you?
Sadly, many insurance policies do not provide an adequate amount of coverage to maintain your lifestyle during restoration. Both advisors and insurance carriers may also not have access to concierge services needed to restore your balance and daily routine during the time your home will be uninhabitable. Many factors can quickly drive up expenses. The inventory of comparable homes in your preferred area may be low. Reconstruction can be painstakingly slow due to location, time of the year, availability of materials, and the permitted hours of construction prescribed by the municipality or condo association. Years ago, I even had a client that could not move back home because the inspector would not approve occupancy until the remaining residences on the same floor were considered complete.
Also on a disheartening note, an estimated 98% of Additional Living Expense losses are not covered by the master condominium policy and most personal condominium insurance policies only provide a capped limit calculated as 50% of your covered personal property. However, there are several carriers, catering to successful families, which can offer higher limits or even an unlimited amount of coverage until things are back to normal. These particular insurance partners have the expertise and knowledge to work thoughtfully with homeowners on the restoration of unique properties.
For a personalized review of your insurance program, please get in touch today.