Condo Home Insurance Condominium Association Insurance Policy Restrictions Liability Illinois Flood

The association’s policy protects the association’s property!

A frequent mistake is that the association’s policy will have you covered. Please don’t be fooled. Their policy only covers the superstructure and grounds. What this means is that in the event of a major storm that tears off the siding, their policy will pay to repair or replace it. If there is a fire and burns the place down, insurance will cover the outer building. What it will not cover is your belongings. It will not cover the interior of your condominium. Think carefully about what that would include: cabinetry, hardware and fixtures, flooring. Disaster recovery could cost you thousands of dollars. 

“Like a good neighbor…”

Multi-family dwellings come with a responsibility to protect your own interests and belongings but also that of your neighbors’. You are legally liable if consequential damage stems from your unit. For instance, if you have a broken pipe in your unit that floods your floor and rots your drywall, chances are good that the units below and next to you are also suffering damage. If your frayed wires are the cause of an electrical fire that sends smoke, fire, and water damage from extinguishment efforts that spreads across the building, you could be held responsible to pay the damages for each unit. Paying $300 annually for a policy could protect you from many thousands of dollars in damages. 

Even if your unit is empty, you should still pay to have it properly insured!

One recent story that demonstrates the high cost of liability went like this: John owned a condo that he had put up for sale. The market was slow and the unit wasn’t seeing much activity. To save some money John cancelled his insurance policy. One day a real estate agent was showing the condo to a client. Unbeknownst to anyone, the client’s child tested the shower in one of the bathrooms and neglected to turn it off. It ran for days before it was discovered.

The water had filled the tub, overflowing onto the vinyl floor and out the door. The condo’s carpet was saturated and the wood flooring, totally warped. The drywall had “wicked” the water up into the walls, damaging layers of insulation along with it. John’s unit was upstairs on the right corner. There was another unit directly below him and one to his left. The damage those units sustained is actually how the disaster was found: a neighbor noticed circles of water forming along her ceiling joints and became concerned.

What followed was every seller’s nightmare:

• Because he was uninsured, John had to pay out-of-pocket to have his condo cleaned, dried out, and repaired. This included flooring, walls, and cabinetry.
• Because he was uninsured, John also had to pay to repair two other homes, also out-of-pocket. His repair bill was now up over 80k which consumed more than the equity he was going to gain from selling the condo.

Protect yourself from disasters like this! Illinois Insurance Center is one of the Midwest's fastest growing and most progressive insurance agencies. Condo and multi-family unit homeowners have specific insurance concerns. Speaking to our professionals can help you customize the best option for you, protecting your money and interests. Contact us for a no-obligation quote, and enjoy our professional services.