HO-6 Condo Quote Question

[Herkster]

Alright, what do you guys use for a property value to insure with on an HO6?
Homeowners association covers the outside of the townhouse - siding, shingles, windows, doors, etc. Insured needs to cover the flooring and drywall, essentially.

They don't have a specific value outlined that they want the insured to carry for coverage - what do YOU use?

 

[nyc2phi]

Alright, what do you guys use for a property value to insure with on an HO6? Homeowners association covers the outside of the townhouse - siding, shingles, windows, doors, etc. Insured needs to cover the flooring and drywall, essentially. They don't have a specific value outlined that they want the insured to carry for coverage - what do YOU use?

Unlike an HO3 where you have the replacement cost calculated for you, an HO6 is usually a number that is calculated through a discussion with the insured.

Ask the insured what they believe it would cost to replace any permanent fixtures such as floor, drywall, toilets, cabinets, etc.

Depending on the square footage and whether the fixtures are basic or custom, you can help the insured guesstimate.

 

[insurance1822]

Technically the best route is to obtain the condo association policy & see how it reads. Is it original spec, bare walls or all-in? Based off that information you can properly advise them.

The problem is unless the association has a property management firm who can quickly provide this information, you'll be chasing down some moron *** who represents the association who doesn't know anything. Without a dec page in hand you can't take anybody's word for it.

Travelers writes building additions for DIRT cheap so that's where my condo business goes (and I just jack it up to be safe.)

 

[blue_wynd]

H06s are cheap. Just quote high for the dwelling to CYA.

 

[Indiana_Adam]

I would look at each of your company's replacement cost estimators to see if any offer a condo rebuild. Then discuss the estimator with the insured. We have one that removes exterior characteristics so as to get a decent idea of interior rebuild. Much better to go that route if possible. Most insureds have no clue what it would take to rebuild the inside of their condo, unless they are a contractor.

 

[DiegoInsGuy]

This is all good info..If the coverage is walls in from the HOA, I usually just describe additions and alterations coverage...letting them know that if they have upgraded countertops, flooring, cabinets, then based on that info, coverage A is decided..usually the insured will tell you what they invested to upgrade..

 

[Herkster]

Unit was already built, standard model. We insured it for how much she paid for the unit, will update as needed in the future. I just wish that these HOA's would put guidelines in their contracts that state what exactly they are looking for, but that's obviously too much to ask for.

Thanks for the help!

 

[djs]

Condo Associations (HOA's) usually only care about liability coverage.
Lenders may care about 'walls-in'.

90% of the condo associations that I have dealt with have no idea what coverage the master policy provides, I quit asking. I spent a couple of days once trying to track this down for a prospect to eventually not save him $50 a year or so since nobody knew. Wasn't worth my time, unless the client knows otherwise, assume exterior shell.

Dan

 

[amandaturton]

As a new agent I found it hard to determine what coverage to quote new condo owners. Those who are just shopping for lower rates, I could just look at their prior and base my quote off that. I know ultimately it is up to the insured but they always ask what I suggest. Completing a replacement cost estimator is helpful and then putting it back on the insured to determine an amount they are comfortable with.

 

[Dave864]

I shoot for and recommend $50/square foot. Closing mortgage company may have own requirements. I've done some with 20%, 50% and 100% of the loan value.