Sharper Management


Insurance: Walls-in vs Walls-out

It’s a great idea to review insurance policies occasionally. If you’re considering changing your HOA homeowners insurance you’ll want to keep in mind what kind of coverage you need. For most types of HOAs where there are shared walls and common spaces, you will need to understand how the HOAs master insurance affects your property. Walls-in (Studs-in) This is the policy you, as the property owner, need to be the most concerned about. Just as the name states, this kind of homeowners policy covers what is inside your owned space. Things like the carpets, cabinetry, walls all fall under a walls-in policy. Walls-out (Studs-out) Most of the time the HOAs master policy will cover damages that could occur to outside your owned space. This would include the roof, probably the windows, fencing, carpet in the hallway of a condo complex etc. However, it is very important to understand who is covering what when you’re searching for a new homeowners policy. Not all HOA insurance is the same. Knowing the finer details of your the association’s policy and your homeowners policy could save you money and headaches in the future.

Time to Check Insurance Coverages

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.