Living in a condo unit, especially one where the units are attached to one another and has an HOA or homeowner’s association, requires a number of insurance policies to ensure that everything is covered. Not only does the HOA have a policy to protect themselves should something happen to the outside of the units, because they are responsible for maintenance and repairs, but the unit owner also needs to have insurance, as the HOA coverage won’t pay for damages to the inside of the condo.
What happens when a fire breaks out and both the HOA and unit owners need to file a claim? Here’s a breakdown of the necessary steps that need to take place.
Reporting and Data Gathering
The first thing that both parties, the HOA representative and the unit owner, need to do is gather information. Calling the authorities to file a police report on the damage, gathering information from the fire inspector, and recording statements from any eyewitnesses are all important tasks that need to be completed.
Next, the HOA needs to check their documentation to see what the process of filing a claim entails, as well as identify what they are responsible for based on the homeowner’s association agreement. In most cases, this is the outside of the unit, which consists of the walls, windows, roof, and any common spaces that were damaged.
The unit owner’s insurance should be responsible for the interior of the condo, including their furniture, appliances, and other personal belongings. It’s crucial for them to make a list of what is damaged, documenting everything in photographs. The HOA needs to do this to the outside of the unit as well.
Contacting Insurance Companies
After everything is documented, reported on, and law enforcement and/or fire inspector information comes in, it’s time for both parties to contact their insurance companies. The unit owner needs to make their homeowner’s insurance aware of what happened so that they can send out an adjuster. The HOA representative needs to do the same, only with their insurance company. During this part of the process, it’s always helpful if both the HOA and unit owner share an insurance company, but this isn’t always the case.
Remaining in Communication
Finally, as the claims process is in motion, it’s crucial to stay in contact with both insurance companies. It’s possible to get both of them to work together, as the claim involves the HOA and the unit owner, but this isn’t always the case. Instead, each party needs to receive updates from their insurance company that they can pass on to each other. This is the easiest way to get everything taken care of in a reasonable amount of time.
Have Questions? Contact Charlotte Insurance
Want to learn more about the different types of insurance for both condo associations and unit owners? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plans your HOA and unit owners need.