Saxony Owners Association (Master HOA insurance)

What does the Master Association Policy Cover? Building coverage includes Common elements, Limited Common Elements, Units, and all fixtures and equipment belonging to the association. The Master policy also provides coverage for the full replacement value of each Unit including all improvements and betterments installed by the declarant. Liability coverage is designed to protect the Homeowners Association for claims arising from the common or limited common areas. It does not provide liability coverage for a unit owner’s personal liability. Personal Liability coverage should be purchased separately and individually for the unit owner’s personal protection. Covered Causes of Loss include: fire, lightning, windstorm, hail, explosion, riot, aircraft and vehicle damage, smoke, vandalism, falling objects, weight of ice, snow or sleet, collapse, sudden and immediate water escape or overflow from plumbing or appliances, and frozen pipes. No coverage is provided for wear and tear, deterioration, damage by insects or animals, settling or cracking of foundation, walls, basements or roofs. There is no coverage for damage caused by continuous or repeated leakage or seepage from appliances or plumbing. This includes, but is not limited to, leaking from around the shower, bathtub, toilet or sink. These events are classified as maintenance items.

What do I need to carry for insurance as the homeowner? As the homeowner, you need to buy a Condominium Owner's policy, also known as an “HO-6” or Condo owners policy. If you own the Unit, but lease it out, then you need a “Condo Fire” policy. This policy will provide coverage to you personally for: - Personal Liability - Personal Property (furniture, clothing, electronics, etc..) - Additional living expenses (in case you need temporary living after a covered loss) - Building or Dwelling coverage, minimum of $10,000 - Loss Assessment Coverage - Water / Sewer Backup of $10,000 Your association’s master policy carries a deductible of $10,000. When a claim occurs in your unit, the association may seek to recover the deductible from you as the unit owner or owners involved in the claim. Your obligation to pay the deductible may be offset by your HO-6 or Condo Fire policy. This coverage comes from the “Building” or “Betterments & Improvements” or possibly Loss Assessment portion of your personal policy. It could be subject to your own deductible, which is typically $500 or $1,000 depending on what you choose. In addition, if you cause damage to a neighboring unit, you may also be responsible so please consult with your personal agent about proper limits of liability coverage.

How do I get a certificate of Insurance for my Lender? The following page contains instructions for your lender to pull the certificate of insurance they require. Please forward the following page to your lender when they request proof of coverage. Insurance Broker: Ryan Stewart, The Partners Group | [email protected] | 425-467-3173 Disclaimer: This fact sheet is intended to provide a brief summary of insurance coverage.. In all cases. the declarations, terms, conditions and exclusions of the actual policy will apply.

(This section is to help explain personal coverage only)

Explanation of Unit Owners personal coverage: 1. If Owner occupied = “Condominium Homeowners, or HO6” 2. If Rented to others = “Condo Fire policy” Key Features of the Coverage: 1.) Dwelling / Betterments & Improvement / Building: Covers the unit-owners' improvements & betterments, which includes fixtures, alterations, appliances and upgrades contained within the residential unit. This coverage is not for your personal belongings. We would recommend that coverage be carried in an amount of $10,000 minimum, or however much you need in order to rebuild the interior of your unit. You will need to determine the appropriate coverage amount with your homeowner's agent. When a claim occurs in your unit, the association may seek to recover the deductible from you as the unit owner or owners involved in the claim. Your obligation to pay the deductible may be offset by this portion of your HO6 coverage.

2.) Personal Property: Covers your own Personal Property. There are many limitations on valuables such as money, guns, firearms, jewelry, fine arts, etc. so ask your agent for more information.

3.) Loss of Use: This covers expenses incurred to live elsewhere while insured damage is being repaired in your unit.

4.) Loss Assessment: This policy extension covers assessments made against all unit-owners by the association for covered property or liability losses. Coverage excludes earthquake for which you may be assessed your portion of the EQ deductible.

5.) Earthquake Loss Assessment: This is an optional policy extension that you can add to your personal HO6 policy to cover an assessment that is made against you as the unit-owner, by the association, in the event of an Earthquake.

6.) Liability: Covers unit owners against personal liability for activities within your unit and elsewhere. Recommended coverage should be for $300,000 minimum limits. Consult with your agent for suggested higher limits of insurance.

Optional Coverages: Backup of Sewer & Drain, Earthquake & Flood for your unit, Business exposures for operations in residence, Rental exposures, Other Property such as watercraft, snowmobiles, etc., Umbrella (higher limits of liability), and other coverage’s’ suggested by your agent to meet your needs.

Insurance Broker: Ryan Stewart, The Partners Group | [email protected] | 425-467-3173 All coverages on this page are the responsibility of the unit owner. Consult with your insurance agent for further information