- Dan Frankel
Condominum Coverage Gaps and Pitfalls
Updated: May 27, 2022
Purchasing a comprehensive policy designed specifically for condominium owners is a solid foundation for your personal insurance needs. There are bound to be some gaps in coverage here and there – that’s where endorsements come into play.
Endorsements are attachments to your policy that either add coverage or expand the limits of existing coverage.
Common endorsements for condominium policies
Additions and Alterations Coverage
While not an endorsement, additions and alterations refers to dwelling items as opposed to personal belongings. If you or the previous owner made improvements to the unit, your basic coverage may fall short. Like insurance covering your belongings, additions and alterations are subject to the same deductibles. It can also boost the coverage offered by the association if that policy is insufficient.
Loss Assessment coverage
Loss Assessment is covered by standard condo insurance policies and provides up to $1,000 to unit owners to cover special assessments stemming from inadequacies in the association’s coverage. It is inexpensive to increase. A limit of $50,000 should be considered.
Personal articles floater
Lists specifically insured items of greater value for all-risks of physical loss. A definite limit is established and premium charge assessed. Typically items such as jewelry, furs, cameras, fine arts, and musical instruments fall under this endorsement.
Replacement value for contents
A basic policy provides coverage on an actual cash value basis (the cost to replace the item, minus depreciation). This endorsement insures you for the replacement value of your belongings without depreciation, up to your policy limit. Damaged items would be repaired, if possible and stolen or destroyed items would be replaced.
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The insurance policy, not this Web site, forms the contract between the insured and the insurance company. The policy may contain limits, exclusions, and limitations that are not detailed in this Web site. Coverages may differ by state.