By: Alexis Kimball, Agent Relations Manager
Your condo association has a master insurance policy to cover the building in the event of a covered loss. But did you know that there are many "extras," or endorsements that can be added to the master policy which insure much more than just repairing the property or covering general liability?
For example, if a unit is destroyed and becomes uninhabitable, the unit owner may not pay their condo dues or maintenance fees. Generally, delinquent condo dues pressure fellow condo owners to make up the difference! Condo dues are vital to the operation and safety of a property, so being short-funded is not an option for an association. However, if your condo association added the Maintenance Fees Coverage to the master policy, this coverage will pay for those delinquent dues.
There is a lot of confusion over uncollected money due to catastrophic losses. Here are a few types of insurance that cover these types of losses.
Maintenance Fees Coverage pays for uncollected routine association dues as a result of a physical loss to the property.
Business Interruption insurance, also called Income Interruption, covers loss of regular income, like rent, that you cannot collect due to a loss.
Extra Expense covers additional costs of getting your business back to its normal operations such as renting temporary space or equipment, such as a generator, to make the space habitable.
Consequential Loss insurance covers situations where no direct damage is done to the property but a loss of revenue is incurred. A scenario in which this coverage would come in handy is if a local bridge collapsed and people no longer have access to your property.
Having the proper insurance coverage for your condominium is important. Talk to your local insurance broker to find out more about extra endorsements that can be added to your master insurance policy to make sure you are adequately protected from the unknown.