What is a master policy deductible?
Under law, your condo association must have a master insurance policy that covers the buildings and common property on the land. While it is clear who pays the premiums for this policy, it can be less clear who pays the deductible in the event of property damage.
What is condominium deductible coverage?
Condominium Deductible Coverage This coverage will reimburse you if there is a special assessment by the condo corporation and their bylaws allow you to be assessed a portion of the condo’s deductible. This coverage applies to your own unit and can be extended to common areas.
Does loss assessment coverage cover master policy?
If your HOA assesses the master policy deductible to members, loss assessment coverage will also help pay for your portion of the deductible. Master policy deductible assessments are particularly common in HOAs that opt for higher deductibles.
What is the master policy?
Master Policy — in property and liability coverage, the combining of several locations or operations under a single policy for the same insured or insureds. In either case, underlying policies or certificates of insurance are issued to insureds under the policy as evidence of coverage under the master policy.
What does a master insurance policy cover?
The Master Condo Policy is responsible for covering two main areas of risk — general liability for the association and property damage coverage for common areas. Common areas are generally defined as the roof and exterior walls, stairways, recreation rooms, elevators, common hallways, and grounds.
What is a master policy in insurance?
Master Policy — in property and liability coverage, the combining of several locations or operations under a single policy for the same insured or insureds. The term may also be used in the case of construction wrap-ups.
What is a deductible assessment?
Definition: A financial charge levied on condominium unit owners by the condominium corporation, to cover deductibles or shortfalls in the corporation’s insurance. After the flood, the corporation issued a loss assessment of $2,500 to each of the unit owners.
What is contingent condo coverage?
*Contingent Coverage: Insures your condo unit itself in the event that the condo corp policy fails to protect you or is insufficient.
Who is responsible for the condo master policy deductible?
An HO-6 insurer will pay a master policy deductible under Coverage A only if the association’s legal documents explicitly make the individual unit owner responsible for it. It won’t pay the deductible just because your client is getting billed for it. Click to see full answer. In this way, who is responsible for insurance deductible?
Is there limit to HO-6 deductible for Master condo?
Unit owners should always carry enough under their HO-6 Coverage A limit to cover the master policy’s highest deductible. This limits the association’s expense of paying the deductible for a loss involving one of the units and limits the unit owner’s out of pocket expenses.
Why do I need a per unit deductible for my master policy?
Many condo master policies are now using a “per unit” deductible in order to shift risk from the master policy to the HO-6 or “unit owner’s” policy. Condo owners need to be advised of the type of HO-6 policy they should carry in order to properly minimize their out of pocket exposure.
What kind of insurance do I need for a Master condo?
Finally, the unit owner should carry “HO 17 32 – Coverage A Special Form” endorsement. This endorsement broadens the types of perils that the HO-6 policy covers.
