What should I know about condominium insurance?

What should I know about condominium insurance?

building-1081868When condominiums or community association property owners are impacted by property damage, the association’s board of directors or manager is tasked with filing the claim to the insurance company. Doing so is an overwhelming task for many, no matter the experience. State laws and specific association documents declare what coverage require and the responsibility between the association and the individual owners.  When a condominium is damaged or destroyed, it is important for the board of directors or manager to understand that insurance companies are “for-profit,” meaning that their goal is to save money by denying claims or paying out as little as possible. Some of the many obstacles they face include delays, misinformation about insurance coverage, multiple adjusters, repair estimates and offers that do not cover the cost of a full recovery, and an uncooperative insurance company.

A condominium’s insurance policy has specific language about coverage. When purchasing insurance or dealing with an insurance company, it is important to understand what is covered under the policy. Many standard policies cover fire, theft, wind and storm damage, theft and vandalism. Many policies are void of flood coverage and many people purchase a separate policy to cover loss from water damage. There are some exceptions to when water damage is covered under a standard policy. If the damage was caused by wind-driven rain or entrance through an intrusion, a policy should cover the cost of recovery.

Having effective representation is important when filing a claim or buying insurance for a condominium. Before a manager or board agrees to terms for a policy or a payout, allow an effective attorney to examine the documents to protect tenants and the organization. If you need quality legal support, contact The Law Office of Craig A. Blumberg.

The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered property loss, please contact our firm to schedule a free initial consultation.