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Two types of insurance cover condominiums:
- A master policy that insures the common areas, and
- An individual unit owner's policy that insures the interior of a unit and its contents.
Betterments and improvements apply to the interior of units, and may include upgraded or new, (and which will remain with the unit upon any sale):
- paint
- carpets
- appliances
- cabinetry
- bathroom furnishings
- built-ins, such as a library
- interior doors
Some master policies cover 'betterments and improvements'; some do not.
Best practices indicate that when betterments and improvements are added to a unit's interior, these enhancements must be documented, including receipts, photographs and so forth. Send a copy of these documents to the property manager, so that they become a permanent part of your unit's history.
Lacking any documentation, when any claim is made against either policy for betterments and improvements, they will not be covered and the unit will be restored to its original -- as new -- condition, lacking your upgrades and additions.
Finally, when it is time to sell, you can showcase your upgrades and additions, which may give you an edge should more than one unit like yours be available for sale in your market.
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What is the difference between betterments and improvements and additions and alterations in a condo policy?
When buying insurance, it is key that you get an explanation, preferably in writing, from a broker when/if the policy uses any of these terms, to satisfy yourself that you're buying the coverage you need/ want.Here's one interpretation of the terminology, which is not standard:'Betterments and improvements' tend to suggest upgrades of existing fixtures, equipment, appliances and so forth.'Additions and alterations' tend to suggest adding something, such as a new deck or a new bathroom -- addition or alteration to a space used in the past for some other purpose. These terms are most commonly used in commercial policies, but not unheard of in condominium policies.
What makes up betterments and improvements in a condominium?
This terminology may be being used relative to a master insurance policy and coverage. One definition might be that betterments and improvements could be upgrades to existing fixtures, equipment, appliances and so forth. This is to distinguish these investments from 'additions and alterations', which could be adding a patio or converting a closet to a bathroom, for example. If your question involves insurance, best practices dictate consulting with your broker or carrier to fully understand their definition of these terms. Regardless of who's using the terms, they should define them for you so that you can fully understand them in the context of your situation.
Is an HVAC unit considered personal property or betterments and improvements?
A portable unit would be considered personal property. An installed unit becomes a part of the real property.
What does Ho-6 condo insurance do?
Ho-6 condo insurance covers damage to the homeowner's property which includes furniture, computer equipment and clothing. It also covers losses under the owner's master policy deductibles. In addition it provides coverage for improvements or upgrades as most master insurance policies only cover the condition and value of the home as it was at the time the policy is opened.
What are betterments?
fruits and vegetables
Is leaking pipes inside the wall covered in condo insurance?
Typically, the coverage for leaking pipes inside a condo's walls can be a bit complicated due to the unique nature of condo ownership. Insurance coverage in condos is generally split into two parts: condo association insurance (also known as "master policy") and individual condo owner's insurance (HO-6 policy). The condo association's policy often covers parts of the building structure, which could include pipes inside the walls. However, it can also depend on the specifics of your condo association's master policy and whether they have an "All In" or a "Bare Walls-In" coverage. An individual condo owner's insurance might cover the damage to personal property and any improvements made to the unit, like upgraded kitchen appliances. Essentially, whether or not a leaky pipe inside the wall is covered depends on where the pipe is located (common area vs. within your individual unit), who is responsible for its maintenance (as outlined in your condo by-laws), and the details of both insurance policies. At Daisy, we've learned that understanding your condo documents and insurance policies is fundamental to knowing what is and isn't covered. It's always advisable to consult with your insurance provider or a lawyer to fully understand your coverage.
Do condo insurance cover motorcycle theft?
Read your policy and check with your broker for the answer you want.
What is a condo insurance expiration date?
Your insurance policy clearly states its date of expiry.
How would wood flooring be insured under an condominium policy?
It depends. If you added or customized the flooring from the original floor plan than you have additions and alterations. These types of changes are covered on your Coverage A on your condo policy. If it is the original flooring than it would depend on what your condo associations master policy covers.
IF my upstairs condo is untouched by a flood but the building's ground floor is damaged so badly that the entire building is unlivable would my flood insurance protect me?
Let's first review what a condo is. A condominium is an arrangement in which you own your own living space outright (your condo apartment), and you share joint ownership (with all the other condo owners) of the common spaces. There will be (at least) two insurance policies in effect: (1) the condo association policy, which covers (at least) the common areas, and (2) your own personal policy, which covers the contents of your condo apartment, and depending upon your coverage, may also cover the internal structural elements (walls, floors, ceilings, fixtures, countertops, etc.) of your specific condo unit. Since there is no damage to your condo unit, your personal condo insurance will probably not apply, even if you have flood insurance. So, the answer to your question depends upon what type of policy your condo association holds. You should therefore ask your condo association.
Does condo insurance cover land erosion?
Read your master policy and work with your broker to determine whether or not the policy covers land erosion.
Will your condo insurance policy cover sewer back up?
No. Sewer back-up coverage is usually available as an endorsement that can be added to a homeowners policy. A condo should be insured on a for HO-6 homeowners policy. You should really look closely at the endorsements available and see what you need and what you don't need. Also be familiar with your condo agreement so you will understand what your responsibilities are for insurance on the common areas and common properties as well.
