The insured's lawnmower kicked a rock through the exterior air conditioner. The policy name for named cause of loss coverage for condominium or co-ops is often referred to as Homeowners Form 6. Your state may have restrictions or natural disaster cause of loss problems. Coastal states face wind problems. California and certain Midwestern areas have severe earthquake problems.
Some western states have brush-fire problems.
Other areas face hail damage. Each state and company has its own rates and philosophy on how it will insure these common causes of loss. Usually, the interior walls, appliances, fixtures, plumbing, heating and electrical that services your property, carpeting, flooring, Jacuzzi's, possibly private garages, and other improvements you make to the property that do not become a part of the building that is owned by the association at large. You work with the agent to establish the replacement cost of your real property. These penalties can include reduced payment, or change from payment on a replacement cost basis to actual cash value.