JoyceS1 (Indiana)
Posts: 140
Posts: 140
Posted:
I'd like to see pros and cons of bare walls out insurance for condos/HOA's.
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bare walls out insurance
Started by JoyceS1 • 9 replies • 5037 views
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JonD1
Posts: 2,350
Posts: 2,350
Posted:
Joyce:
What exactly are you asking?
Is this sort of insurance necessary?
Should the property carry it?
Perhaps, if you gave us so more detail as to what you would like us to comment on it might be easier for us to address your post.
What exactly are you asking?
Is this sort of insurance necessary?
Should the property carry it?
Perhaps, if you gave us so more detail as to what you would like us to comment on it might be easier for us to address your post.
JoyceS1 (Indiana)
Posts: 140
Posts: 140
Posted:
Sorry. I realized I was too vague after the fact.
My question is for anyone who had single entity insurance and switched to bare walls out insurance. What was the incentive to make the change? What are the problems encountered with switching.
Our association is exploring the possibility of switching from single entity to bare walls out.
I have no specifics in mind other than generally what experiences, if any, anyone can share with the switch....advantages, disadvantages, good idea, bad idea.
My question is for anyone who had single entity insurance and switched to bare walls out insurance. What was the incentive to make the change? What are the problems encountered with switching.
Our association is exploring the possibility of switching from single entity to bare walls out.
I have no specifics in mind other than generally what experiences, if any, anyone can share with the switch....advantages, disadvantages, good idea, bad idea.
BarbaraD6 (Florida)
Posts: 347
Posts: 347
Posted:
Joyce,
I have never heard of this.
Barbara
I have never heard of this.
Barbara
EllieD (Vermont)
Posts: 446
Posts: 446
Posted:
JoyceS1,
Can we assume that this type of coverage is allowed by the Indiana state statute under which your condominium was formed?
I was not sure what “bare walls out” Insurance Coverage was, so I just “googled” the words “Insurance bare walls out”. A quick scan of what was returned indicates that there is much to consider.
Are you asking from the Association Master Policy point of view or from the Unit Owners point of view?
Sorry, I can offer no experience, but I am interested in the topic.
Can we assume that this type of coverage is allowed by the Indiana state statute under which your condominium was formed?
I was not sure what “bare walls out” Insurance Coverage was, so I just “googled” the words “Insurance bare walls out”. A quick scan of what was returned indicates that there is much to consider.
Are you asking from the Association Master Policy point of view or from the Unit Owners point of view?
Sorry, I can offer no experience, but I am interested in the topic.
JoyceS1 (Indiana)
Posts: 140
Posts: 140
Posted:
Ellie:
This type of insurance must be unique to Indiana. I was hoping I would find others with this (law) experience.
From the Association Master Policy point of view, the cost will lessen considerably.
Of course, from the unit owner point of view, the cost increases because of requiring more coverage of the interior by the unit owner. In the end it balances out.
We have single entity currently. The unit owner policy and association policy overlap coverage such as both covering appliances as well as some other parts of the interior.
We have work ahead of us as to how it will benefit us. Before that undertaking, I was hoping to find someone who has had experience with the changeover and their point of view as to why they changed and if they are happy with the result.
This type of insurance must be unique to Indiana. I was hoping I would find others with this (law) experience.
From the Association Master Policy point of view, the cost will lessen considerably.
Of course, from the unit owner point of view, the cost increases because of requiring more coverage of the interior by the unit owner. In the end it balances out.
We have single entity currently. The unit owner policy and association policy overlap coverage such as both covering appliances as well as some other parts of the interior.
We have work ahead of us as to how it will benefit us. Before that undertaking, I was hoping to find someone who has had experience with the changeover and their point of view as to why they changed and if they are happy with the result.
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Quote:
Posted By JoyceS1 on 06/17/2010 8:57 AM
I'd like to see pros and cons of bare walls out insurance for condos/HOA's.
I'd like to see pros and cons of bare walls out insurance for condos/HOA's.
I am not being an insurance person, but here is my understanding:
Bare Walls Coverage
This was the standard before the Uniform Condominium Act of 1980. For bare walls insurance the owner is responsible for insuring all real property defined to be part of the Unit. The problem is defining the diverse Unit boundaries and interior partition walls (common walls). It can be from the studs or unfinished walls out (owner responsible for paint); the sub-floor and underside of the ceiling; and other variations. Claims can be a long and possibly litigious process.
Original Specifications (AKA Single Entity) Coverage
This is now the standard. The association is responsible for all real property; but only to return the building and units to their "original condition", i.e., without the upgrades by the owners. The advantages are improved loss adjustment and not leaving to chance the rebuilding of a damaged Unit. Owners still need an HO-6 policy to cover their personal belongings.
BrianK1 (Colorado)
Posts: 54
Posts: 54
Posted:
Are there gaps in coverage of property if the only policies are the association's bare walls insurance plus an owner's HO6 policy?
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Brian, whether or not there are gaps and overlaps in the HOA's insurance and an owner's HO6 will depend on the two policies. I suggest you have your agent for the HO6 policy review the two coverages; explain them to you; and make any recommended changes to you.
BrianK1 (Colorado)
Posts: 54
Posts: 54
Posted:
The agent for my HO6 insurance policy looked at the HOA insurance policy and told me to ask the HOA insurance agent about what it covers. The HOA insurance agent said he hasn't heard of the terms 'bare walls' and 'single entity' pertaining to insurance types, and couldn't tell me which type we have, but he said that when there is a large loss, the companies (or divisions in the same company), always "fight it out" as to who pays for what.
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