Insure Roof on Condo or Not?

Question

I have a rental Condo in Asheville, NC and I got a letter from the HOA saying they are going to have a meeting about getting a new roof.  They also asked everyone if their roofs are covered by insurance, saying it's OK if not.

My insurance currently does have coverage, but I need to switch carriers right now anyway.

So my question is: when I get new coverage, should I include the roof in hopes of getting hit with less of a fee from the HOA or should I assume the HOA is going to charge full price anyway and avoid the insurance increase?

Thanks!

Jared Townsend · Answer

Agreed - your Condo agreement should specify whether your personal insurance should cover the roof or not. If their master policy covers it, you can likely save on premium by switching to a condo policy that doesn't cover the roof.

Richard F. · Answer

You should provide a copy of your Condo Declaration, and a copy of the HOA's "Insurance Summary" to your Insurance Agent so they can determine exactly what coverage, and, most importantly, what deductibles you need to properly insure. Your HO6 needs to mesh with the HOA's Master, or you will have huge deductibles in the event of a major loss.

You should have received a copy of the Approved Annual Budget and Reserve Funding Plan from your HOA in November (assuming their fiscal year is the calendar year), and the year end HOA Financial Statements within the last 30 days or so (in addition to your unit financials). Provide those as well so your Ins Agnt can see the funding level of the Reserves, and how much is earmarked for roofing.