Unit Owners Special Coverage A: What is it?
Great question. I quote a lot of condos at L&M Insurance Group, and I always include “Special Coverage A.” Special Coverage A is an inexpensive endorsement on your condo insurance policy that changes your policy to “Open-Perils” coverage. A typical condo policy without this special endorsement would provide coverage on a named peril basis. This means if you incur damage from one of the perils named in the policy you have coverage; if it’s not named, you don’t. It’s that simple. The Special Coverage A endorsement changes your policy to an open perils policy, meaning the insurance company will cover damage from every peril unless it is listed in the exclusions.
Examples are always best, so let me give you one. Let’s say you have a named peril policy (not Special Coverage A) and you have water damage caused by a pipe breaking, and it is a listed peril. Whew–you have coverage. But, let’s say the water damage is from a broken fish tank, a leaking water bed, rain that enters an open window and causes damage, seepage of water around windows, or a sprinkler that causes damage through an open window. I just listed a few ways you could have water damage, yet not have coverage under a typical condo policy since they are not specifically listed as covered perils. These perils would be covered under the broadened coverage of an all peril policy with Special Coverage A. This is just one example using one peril–water damage. Please remember my posts are intended as a guide. It’s important to read your entire policy to discover the coverages you have and don’t have.
Many claims are denied every year because this inexpensive endorsement (almost always less than $50 annually) is not purchased by the client.
We at L&M Insurance Group believe this is an important endorsement to your condo insurance policy and believe it is worth the extra premium. Call us today if you have any questions or would like to get a free quote or review of your current condo policy.
Remember, we would love to serve all your insurance needs including auto, commercial auto, commercial general liability, homeowners, tenant occupied dwelling, bonds and any other insurance you might require. If you would like to send me an email–use this link.