How Important is it to have Condo Insurance in Zeeland MI?
If you own your own condo in Zeeland, MI, then you will need to have insurance for your condo. Also, you will need to ensure that your condominium corporation has insurance. The insurance covered your belongings as well as structural parts of the condo that you own such as the kitchen cabinets that you installed. Your condo corporation will have a policy to insure the overall building, including your condo. The condo insurance is almost similar to the homeowner insurance with some special clauses because of the unique ownership relationship with your condominium corporation.
To make sure that you insure the structural components which belong to you and your condo in Zeeland MI, check with your condominium corporation and read insurance policy of the corporation. The insurance will clearly specify what you own and what the corporation owns.
Let’s consider an example: A condo owner of the top floor is away for the weekend and meanwhile, their hot water heater springs a leak. The leak water travels from the top floor down through the roof and causes significant damage to the lower unit. Now, the question arises; whose insurance pays?
* The lower floor unit holders
* The top floor unit holders
*The condo corporation
Well, in such case no-one’s insurance wanted to pay. In this situation, the author was on the condominium corporation and got a first-hand view of the finger pointing and other legal internal strife. Finally, insurance of the condo corporation paid for part of the repairs, and the lower unit owner had to sue the condominium board to have the original finishes in the condo returned to their original condition.
What do you learn from the above incident? Be aware of your condo insurance before something major happens. Further, the more you know about insurance of the condo corporation the better you can modify your unit’s coverage. In the above case the condo owner actually owned the paint on the walls, which caused the problem of having the unit repaired.
Condo owners in Zeeland, Michigan can get a special kind of condo insurance that do not remove coverage against ‘unit assessment’. Consider another example to illustrate this condition: let’s assume there is a fire in the lobby of the condo building, then condominium corporation’s insurance will pay for most of it. But if the insurance covers only ‘actual cost’ as contrasting to replacement cost there will be an amount, which needs to be covered by the corporation. In this case, you may be required to pay a unit assessment that will be an additional cost to your regular condo fees. The coverage of condo unit assessment will prevent you in the case of this occurring.
If you own your own Condo in zeeland mi or planning to buy one, make sure you have knowledge about your as well as your condo contractor’s insurance policies.