(Updated 4.28.2011) What is the coverage provided by the Association Insurance Policy?

The Association carries a property insurance policy in accordance with the HWCA Declarations for all Common Elements including Limited Common Elements as well as a comprehensive general liability policy (see Declarations: Paragraph 16, Subparagraph D., page D-12). In addition, the association policy provides replacement cost coverage for individual units (see the Amendment to Declarations Paragraph 16, Subparagraph A on page D-36). Specifically, the Association coverage for an individual unit and coverage for an attached unit is limited to the replacement cost of the building structure and anything built into the unit when the unit was originally constructed and other specific items. Examples include the replacement cost of the outer structure, original walls, mechanicals and fixtures, original carpet grade, original appliances and original finishes, such as laminate counter tops to name a few. The insurance carrier has stated that the policy does not cover the value of enhancements or betterments that exceed the replacement cost of the original covered property.

Considerations for Unit Owner Insurance Coverage:

A unit owner should consider obtaining insurance coverage for any improvements or upgrades made to the unit since its original construction – such as hardwood floors, granite counter tops or upgrades in carpet quality to name a few examples. These kinds of policies are often referred to as an HO6 condominium policy. In addition the unit owner is required to carry carrying the appropriate insurance to cover public liability and personal property for the Unit. (See Declarations: 16 Subparagraph B on page D-12) Coverage for the Unit owner’s liability and personal property are NOT included in the association’s policy.
The above discussion is not a complete description of the coverage provided by the Association’s policy and may not be relied on by the Unit owner. Unit owners should provide a copy of the complete policy to the Unit owners insurance agent to determine the appropriate level of coverage needed to protect the Unit owner.
When discussing insurance with your individual insurance carrier you should provide them a copy of the condominium documents including all of the amendments and specifically pages D5 through D7 and D36. Page D-36 contains the Amendment to paragraph 16 A. in the original Declarations and relates to the property insurance policy carried by the Association.

Insurance Company Information:

State Farm Fire and Casualty Company
3565 University Ave, Madison, WI 53705.
The agent is Clyde Olson Insurance Agency (608) 238-2000;