My HOA has a blanket insurance policy that has a $10,000 deduct. What other coverage do I need?

Question

I'm trying to buy supplemental homeowners insurance for my townhouse. My homeowners association has a blanket policy that cover the structure, however nothing inside the house is covered. Their deductible is $10,000. What other insurance coverage do I need and approximately how much personal property coverage would I need for a 3 bedroom/2 bath townhouse?

Answer 1

The deductible on the HOA policy doesn't come into your calculation. If your townhome were to be destroyed or damaged in some way (fire, tornado etc) then the structure would be repaired or replaced by the HOA Insurance policy and the deductible would be paid for by the HOA (which would then probably turn around and assess each unit owner an increased amount on your annual Association fees to get this money back). You will be responsible for replacing everything inside. This could include the from the drywall in so please read the Association rules and check the contract you signed when you purchased your home as it will normally specify exactly what you are responsible for. You are the ONLY person who can determine how much coverage you need. Make sure you buy enough coverage to replace all of your belongings as well as the drywall and plumbing fixtures and fittings (you may well be responsible for those-check the contract).
One other thing, be sure and get liability coverage on your policy-I don't know of a policy that would not include this coverage but make sure you ask about how much coverage there is. The liability will protect you in the event you have a leaky pipe, or have a fire in your unit that causes damage to a neighbor's unit, your liability will pay for their damage. I recommend you buy at least $100,000 coverage but $300,000 would be better.

Answer 2

To start with I would choose a different insurance company. A $10,000 deductible for blankets is ridiculous. Who has any blankets
that cost over a $100 at the most? Trust me, you are taking a
beating on this one! Try another company. Don't concentrate
too much on the blankets, there are much more important items
that would require replacing in the event of a fire or flood.

Answer 3

I have 30,000 coverage on my stuff. That will make sure to cover my computers, t.v's, couches and everything that isn't cheap to buy.
Since the HOA has the coverage then the deductible would come from them if their policy was needed. You would just have to pay your insurance deductible.

Answer 4

This question is worth more attention

Answer 5

sandtone is 100% correct

Answer 6

Sorry, not sure about this