My parents just bought a condo(townhouse) for like ~$1m, and have an H06 policy ($50k limit I believe) for the conents. The condo's property coverage doesn't include earthquake or flood coverage.
Can they buy standalone flood/EQ coverage? If there's a significant standalone flood claim it's going to do significantly more damage to the property than the H06 would cover and I am doubtful all of the neighbors in the community are going to want to pitch in/can afford to cover the repairs to a specific house(s) via an assessment.
Or is the only option to convince the HOA to pony up for flood/eq coverage for everyone. (which I assume would be more cost effective anyway)
Can one buy standalone flood/EQ coverage for a condo?
byu/vulcan583 inInsurance
Posted by vulcan583
2 Comments
State this condo is in? Confirm this is just for your parents own personal property (stuff)?
Flood insurance is generally provided by the FEMA (Federal Government) under the National Flood Insurance Program. Some companies will appear to write it, but they are actually just fronting it for NFIP.
Earthquake insurance, in California, most insurers are required to offer earthquake insurance when buying a homeowner policy including condo & renters insurance. There used to be a couple of companies that offer stand alone earthquake insurance, but I think they’re gone now.
For either dicussing it with your agent would be the best course.
HOA insurance would only cover the common areas and if applicable the building (4 walls & roof only). There are some subs here that indicate regular condo HOA insurance is very expensive or hard to get and some HOAs have had their coverage lapse.
Yes they can. have them ask their agent. Any agent worth anything has at least access to NFIP (National Flood Insurance Program) policies which is the federal program but there are private flood insurance options out there as well and if they aren’t actually in a flood zone is probably a better option for them.
I would definitely have them raise their coverage if they only have 50k in building. Even if it’s walls in the smallest of small condo’s are gonna cost more than that. Especially if they are in a HCOL area.
My rule of thumb is $100/sqft MINIMUM for luxury condos or HCOL areas. So that’s like 100k coverage for 1k sqft.