Don’t play with fire.
Wait thirty minutes after eating to swim.
Who hasn’t heard this age old advice. My mom was always after me about the swimming and eating thing, so I remember rarely eating at the public pool. LOL. But my post today isn’t about swimming advice, it is related to insurance. Fire and water and home ownership.
Fire and water turn out to be really bad for buildings and cars. I found out about the car issue this month. My son’s car was caught in a freaky flash flood in Fort Collins. Though on the surface it didn’t look too bad, the flood totaled the car. Thankfully, we had insurance. Turn out, water and cars don’t mix well at all.
“In the event of a loss, no policy holder ever wished that they had less coverage. Attached homes, as in condos and town homes, are often under insured. Most HOAs have a master insurance policy that covers the exterior of the home, but in the event of a fire or total loss, the owner will have the structure rebuilt, but will be given an empty shell. A good condo or town home policy should have enough dwelling coverage to replace wall coverings, carpeting, cabinetry, built in appliances and fixtures, everything from the studs in.” Catherine March
Many home buyers purchase a condo or town house or other attached dwelling. As part of the property, there is an HOA – a Home Owner’s Association. Frequently one of the listed expenses for the HOA is Hazard Insurance. The easy conclusion, hey, I (the buyer) can save on hazard insurance because the HOA is covering it for me. This is not actually the case.
Fire and Water and Insurance
Home owners need to have their own insurance policy above and beyond what is covered by HOA. And it isn’t too late. If you own an attached dwelling, but do not have insurance, you can add a policy to your property. Why? The HOA policy is designed to benefit the community. You need a policy that protects your best interests. Many community policies are studs out – meaning the interior of your unit is not really covered. Other life events can pit an HOA against an owner. For instance – a fire on the exterior of the property that damages several units. What is best for the home owners association and best for the victim of the fire is not always the same. I know this from client experience. So take some time now, and make certain your unit is well covered.
Linda Delano with Country Financial suggests the following precautions to prevent fire:
- Discard Piles of stored newspapers.
- Don’t overload outlets; replace old and frayed extension cords.
- Keep matches and lighters out of reach of children.
- Never store flammable liquids or aerosols near any heat source.
- Remember, materials on or near a stove can catch on fire accidentally.