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As a pud owner, do I buy my own homeowners insurance, or does the association?
Anonymous4 views1 answers
the fees of my homeowners association have covered the insurance of all units since it was built, about 2 1/2 yrs. ago. some of the owners (me included) feel we should be able to carry the insurance individually; some think the association should do this. it was set up by the builder this way, but we are wanting to pull out and purchase our own - we feel we can get a better deal. are we legally allowed in Tn to purchase our own insurance or must we continue with what the others want? a friend owns a pud and buys her own insurance. if we are right and can purchase our own, how would we go about getting out of this situation?
Robert M DiamondReal Estate AttorneyFalls Church, VA ·
How your home is to be insured is usually determined by the documents establishing your homeowners association. If you wish to change how the insurance is carried, you may have to amend those documents. Also, your lender will want to ensure that your home is properly insured. Keep in mind that there are three parts to the insurance coverage--property damage to the structure, property damage to the contents (wallpaper, personal belongings, artwork, etc.) and liability to others. Either the association will either NOT cover your home at all or it WILL cover property damage to the structure and the Association's liability for the common areas. You should carry property damage coverage for contents (including betterments and improvements) and for your own liability. Consult with the association's insurance agent and your own insurance agent to make certain you have adequate coverage.
