Keep in mind that individual unit owners need to have a policy for their own belongings as well as the portion of their units for which they are responsible. The deductible represents the portion of the total amount of the claim that is the responsibility of the Association. Higher deductibles are good for the Association's loss history and in most cases the unit owner's homeowners policy will handle claims within the deductible. The earthquake portion of the Master Program covers losses and damage to the building and contents due to earthquake. This is a substantial and often overlooked form of coverage that is very important in the Pacific Northwest.
Coverage applies for claims arising from common or limited common areas.
Claims arising from within a unit are generally the responsibility of the unit owner's homeowners insurance. Think of this as simply higher limits of liability insurance protection. Instead of paying the premiums to increase your basic limit of general liability, and auto liability, or director's and officer's liability, it is usually much more cost effective to buy a liability umbrella policy to protect the Association from higher claims. We have found that Associations tend to underinsure their liability exposure, and an umbrella liability policy is the most cost-effective way to obtain this protection. For example, a serious accident happens on Association property for which the Association is deemed liable.