About Homeowner’s Insurance
At Braeside, we aim to provide the support needed by our Chicagoland neighbors. We provide right-sized guidance to give you peace of mind. One of the areas we want to provide clarity on is insurance.
Typical Association Declaration and by-laws, as well as the Illinois Condominium Property Act, require homeowners to obtain insurance on the contents of their unit and the contents of limited common elements serving their unit. Most insurance companies provide condominium unit owners' insurance, typically referred to as an HO-6 policy.
The condominium association is typically responsible for repairing and maintaining the common elements. Unit owners are typically responsible for repairing and maintaining appliances, fixtures, and plumbing on either side of the drywall that exclusively serve their unit.
This is why it’s so important to get a unit owner’s insurance policy that covers everything you might be responsible for, including things like:
- Horizontal and vertical pipes that bring water to sinks, showers, bathtubs, toilets, ice makers, water heaters, washing machines, air conditioners, humidifiers, etc.
- Leaks coming from overflowing bathtubs, showers, toilets, washing machines, deteriorated caulking around bathtubs, deteriorated toilet gaskets, etc.
- And any damage that may result from a malfunction or accident involving fixtures and equipment within your unit.
Many condominium dwellers believe that, because their association buys a master insurance program, they do not need to buy their own personal insurance.
THIS IS NOT TRUE. As a unit owner, you need to insure all of your personal property, which includes:
- Interior decoration (finishing paint, wallpaper, paneling, window treatments etc.)
- Floor coverings (carpet, tile, parquet, hardwood, marble, linoleum, etc.)
- Household contents (furnishings, clothing, dishes, etc.)
- Storage locker contents
- Non-built-in appliances (refrigerators, stoves, washer and dryers, etc.)
- Personal liability for you and your unit
- Worker’s compensation insurance for any domestic help
When purchasing a unit owner policy, it is recommended that you purchase an “All Risk” policy, which provides extremely broad coverage. In addition, finding a policy that offers a combined limit for personal property, improvements, and betterments, and decorating items may reduce the chances of your policy exhausting limits.
In addition, if a loss is claimed against the association’s master policy for repairs to limited and common elements, the Illinois Condominium Property Act allows the association to assess the amount of the association’s deductible to the homeowners causing or benefiting from the repairs. Many associations have significant deductibles; many are in the $5,000 to $10,000 range. Contact your insurance agent to review your policy and ensure adequate coverage is provided.
You are encouraged to obtain your own insurance policy. In the event you do not, the Illinois Condominium Property Act states: “If the unit owner does not purchase or produce evidence of insurance required by the board, the directors may purchase the insurance coverage and charge the premium cost back to the unit owner. In no event is the board liable to any person either with regard to its decision not to purchase the insurance, or with regard to the timing of its purchase of the insurance or amounts or types of coverage obtained.”
Contact Us with Any Questions
If you need more information, don’t hesitate to reach out to us at Braeside. As Chicagoland residents ourselves, we understand the neighborhoods we serve, and we provide grounded service with a human touch.
