H06 minimum requirements

Can Governing Documents (Minnesota townhouse) require specific coverage for individual owners H06 policy? For example. A minimum amount of property coverage and a minimum amount for Loss Assessment coverage? Any examples or suggestions?

Take a look at Minnesota state law MN. 515B and it will give you options for Master Policy insurance such as All- Policy or a Walls Out policy..

Condo policies can insure townhomes, rowhomes, and subdivisions that aren’t classified as condominiums.. “HO6 insurance,” condo insurance can cover liability claims, damage to the condo unit and belongings, and additional living expenses if the insured unable to stay in the residence due to a covered incident. Condo insurance generally won’t cover common areas in your complex, like hallways, sidewalks and parking lots. That’s the responsibility of the HOA.

What are you trying to accomplish by requiring this coverage?

If you require an owner to carry H06 and the insurer believes the claim is the result of HOA negligence the insurer can subrogate against the HOA.

The amount of coverage needed can and does change depending on what needs to be repaired and who's responsible, so it's best to tell homeowners they're responsible for the itens listed as owner responsibility in the documents. How that gets paid is up to them. Generally homeowner insurance isn't mandatory (the mortgage company requires it to protect its interest). Some homeowners go the self insured route because they can't afford the cost (and then they pray nothing happens!)

That's why it's best to get a certificate of insurabce from the association master insurance and review it with your agent to make sure you aren't over or under insured. Be sure the policy will adjust for current replacement costs, otherwise you'll have to pay the rest in addition to your deductible.

As for loss assessment coverage, that will also depend on the amount of the special assessment, so you might want to review that with your agent periodically to see if the coverage should be increased. Of course, you deductible and premium will also increase because of that, so you should be poo paying close attention to how the board is managing the association reserve fund, such as getting updated reserve studies every 5 years and making sure regular assessments keep up with inflation.