Why Home Insurance is Essential to Condominium Owners in Michigan


Condo associations in Michigan typically have insurance policies, but these tend to not cover everything in the complex. Such policies would most likely just include common areas of the building, including the common rooms, hallways, pools, and the exterior. Depending on what is written on the condo association’s master policy, condo owners would need a separate home insurance policy that would cover individual and personal needs. Home insurance for a condo unit would cover both personal property and personal liability for added protection.

Home insurance for condominiums is referred to as a dwelling policy (DP). It is a multiple-line insurance that has property and liability coverage. It can cover damage to furniture, clothing, appliances, and other personal items as well as personal belongings in the home or elsewhere. The policy can also cover the common loss assessments made by the condo association for all unit owners. Unit owners can select enhancements and add-ons like valuable items coverage or extra coverage for more specific insurance needs. The condo owner’s personal liability in the event where someone’s property is damaged or someone is injured will also be covered.

Our home insurance property coverage is divided into several categories. Coverage A concerns the value of the dwelling itself, excluding the land. Coverage B covers other structures around the property which are not used for business. Coverage C protects personal property, with limits for theft and loss of particular classes of items. Coverage D covers loss of use and additional living expenses and fair rental value if part of the residence ever gets rented.

A DP is paid with a single indivisible premium for all the risks. The required premium for the policy will depend on how much it would cost to replace the condominium and any additional items that are insured. In this case, condo owners should have a good idea of how much their valuable possessions are worth so that they can determine the proper amount for coverage. Homeowners could have their belongings itemized and appraised, including the costs of upgrades made to the condo (carpet, countertops, cabinetry, etc.). However, it should be noted that the price of the premium could be less if the home is less likely to be damaged or destroyed.

Allied Insurance Managers, Inc. is a homeowners insurance firm in Michigan established in 1912. The company also offers other types of insurance policies such as business insurance and life & health insurance. Get in touch today to benefit from working with one of the largest independent property-casualty insurance agencies in Southeast Michigan.

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Headquartered in Rochester Hills, Mich., Allied Insurance Managers is one of the largest, privately-owned, independent insurance agencies in Michigan.