So our HOA general liability policy covers the exterior and interior of our townhomes, excluding personal property. This policy is written to insure our homes at 100% value. Outside of this, each homeowner carries insurance on their individual unit for 100% of its value as well. Few questions:
- Is this an overlap in coverage?
- If it is an overlap, should the owner's only take out personal property policies?
- Should the cost of the dirt/land, be included in the replacement value? This is a 58 unit development, so let's say even at $20,000K per lot, that's adding $1.16M in additional insurance coverage value, which I'm sure is contributing to our annual premium cost.
I believe that what you will be looking for is an HO-6 policy. It should take in to account the master policy and provide the coverage you need at a reduced cost (compared to a standard homeowners policy).