It is also strongly recommended that residents, including both Owners and renters, carry property insurance protecting their belongings. Similarly, to obtain a parking license for the garage, the agreement requires that all cars have the appropriate auto insurance.
But, the most important coverage is Liability insurance, covering all units. This is for all owners individual and collective protection. It compliments coverage held by the Association covering the building and common elements. It is intended to protect everyone who calls Park Tower home in the event of an incident such as a fire or flood. Coverage is critical should such a major incident occur, particularly since most of us don’t have the excess tens of thousands of dollars lying around to make us whole in the event of a major emergency.
“…Unit owners and tenants are responsible for insuring the unit and personal belongings on the property, including storage locker items and automobiles in the garage. Unit owners shall obtain a minimum $500,000 liability insurance coverage for each unit.”
On top of liability insurance, residents (including renters) should consider getting property insurance up to the value of all your belongings. For those with expensive electronics, artwork and/or jewelry, we recommend you discuss this with your insurance agent. Make sure you have adequate coverage to make you whole in the event an incident occurs which could result in damage or loss of any of your belongings which are important to you.
Other helpful insurance to consider are “Umbrella” policies. This provides excess coverage above the limits of your liability and property insurance. Despite how far we think $500,000 might stretch, you would surprised how quickly that could evaporate in the event of a significant incident. Umbrella coverage is typically quite economical for the added protection, and might be worth at least a conversation with your insurance agent.
Providing proof of the base $500,000 of liability insurance to the Association is mandatory. You should receive reminder notices from the office, but we suggest when you are purchasing your insurance or working with your agent to have your policy renewed, you simply advise them that Park Tower Condo Association be named ‘additional insured’ and provided with a certificate automatically. For most companies, this means they will automatically send us a certificate upon purchase and renewal. We also suggest that you contact us to confirm we receive, or to be extra sure, send us a pdf of your certificate. Not only does that confirm your insurance, but it provides you with proof you submitted. Just use our general office e-mail at email@example.com.
If an Owner does not provide proof of insurance, the Association does assess a $100 fine. And the fine will double each month, up to a monthly fine of $1000, until proof of insurance is provided.
The Condo Association maintains insurance policies covering, among other things property insurance, general liability, workman’s compensation and fidelity bonds for employees. The intent is to have coverage enough for the replacement cost of Park Tower and contents owned by the Association. In terms of the physical structure, this coverage protects all common elements, up to the ‘shell’ of each unit and the primer coat of paint.
If you ever have questions about insurance, we of course recommend the best source of information is your individual agent. However, feel free to contact the office with any questions at any time.