If you have not done so already this year, now is a good time to review your Association’s insurance policy. With summer storms and flooding upon us, knowing your coverages in advance of a damaging storm is a good precautionary move.
Many HOAs master policies cover what is known as “studs out” meaning things outside of an individual condo unit or townhome is covered by the Association master insurance policy. Studs-out polices then cover the exterior of the building, such as siding, roofing, decks, and fencing as well as common areas. It does not cover items on the interior of a private residence in the HOA. An electrical or grease fire within a unit’s kitchen would be covered by the owner’s homeowner’s policy.
Checking your coverage amounts is a good idea especially if your HOA has not done so in a few years. As with most property, values go up each year and so does the cost of building supplies. Being under insured in the event of a storm may cause the Board to implement a special assessment for homeowners. No one likes a surprise like that.