If you own a townhouse or condo it is critical that you take a few extra steps to know how to structure your insurance. Here at Arkansas Insurance Advisors we have many different companies who offer condo and townhouse insurance to ensure we can find the right fit for you.
Though it is standard for the condo association to cover part of the insurance with the homeowner covering the remaining this is not always the case. The first step you need to take is to read the agreement with the Property Owners Association (POA) to see what the legal requirements are of both parties regarding the insurance. If the agreement is standard the POA will cover the structure referred to as “studs out” and the homeowner will cover the interior referred to as “sheetrock in”. Under this scenario, the POA is responsible for the exterior, the roof, and the structure of the building. For the homeowner they are responsible for the sheetrock, flooring, cabinets, fixtures etc. With this structure the homeowner and the POA are both splitting the re-construction costs; to determine the split you should consult a local builder.
Once you have determined the structure the next step is to confirm the POA has the proper insurance in place. If the agreement requires the coverage be split but the POA does not have their insurance properly set up you will want to cover the entire re-construction costs; unfortunately we have encountered this scenario before.
Regarding rates, condo insurance is typically less in cost than homeowners because less coverage is required. To achieve the best rates on condo insurance it is recommended that you combine your auto insurance with it for a package discount with is typically 25% off of the condo insurance.
With our office located in Little Rock we commonly serve clients all across central Arkansas. Whether you own a condo in downtown Little Rock or a lakefront condo in Hot Springs we are here to help you. For more information you can call us at 501.436.6840 or CLICK HERE to request a quote.