What structural items do you personally need to insure?

The Association’s Condominium policy provided by State Farm Insurance covers all Association structures as defined in the Association Declarations and By-Laws.

When the Association is responsible to repair structures according to the Declarations and By-Laws that was caused by an insured peril and the loss exceeds the Association policy deductible State Farm Insurance is notified of the loss. When a claim is handled by State Farm Insurance coverage is extended to the entire structure including anything that is permanently attached to and part of the structure. This includes but not limited to: paint, wallpaper, installed carpet, cabinets, partition walls and fixtures. This means that State Farm Insurance handles the entire claim and pays for these items. These items could be the Unit Owner’s responsibility to pay for according to the Declarations and By-Laws if State Farm Insurance did NOT handle the claim.

If the deductible is not met by the above criteria, the Association will not submit a claim to State Farm Insurance. When there is not an insurance claim submitted to State Farm Insurance, the repairs to the structure are the responsibility of the Unit Owner and/or the Association as determined by the Declarations and By-Laws.

Therefore, as a Unit Owner you need to have insurance for the betterment and improvements you are responsible to pay for, as stated in the Declarations and By-Laws when State Farm Insurance does not handle the claim.

There is NO coverage provided in the Association policy for your personal liability and personal property (contents of the unit) as a Unit Owner or Tenant. This coverage is ONLY provided by a Unit Owners or Tenants policy. Be sure to contact your insurance agent to secure needed coverage.

I hope this helps you, as a Unit Owner, in determining how much betterment and improvement coverage you should purchase on your individual unit.