What you MAY NOT know about Condo insurance
Newer lender regulation REQUIRE people owning a condo and even some town homes to get homeowners insurance. This policy is similar to a “renters insurance policy“, but is actually called an HO6 policy.
If you or one of your clients owns a Condo or a Townhouse, there is an important coverage to consider.
It is called “extended protection”. this coverage protects the owner for any damages that may occur that the owners association will not pay because the master policy for the association has a deductible of $5,ooo or $10,000.
If for example, the owner grills out on the deck and gets too near the vinyl siding and damages it, the association will make them fix it but will not pay for repairs until the deductible is reached. So the owner may be on the hook for that 1st $5,000 or $10,000.
With extended protection, insurance will pay the damage up to the deductible. And the coverage is relatively inexpensive.