Considerations for Condominium Unit Owners

There have been many questions regarding an association's insurance policy and what a unit owner needs to insure. Coverage for an insurance claim is dictated by the language in the "Illinois Condominium Property Act".

Unit Owner's Property Insurance Should Include:

  • Floor Covering, Wall, and Ceiling Coverings.

  • "Additions, Alterations, Improvements and Betterments" which means all decorating, fixtures, and furnishings installed or added to and located within the boundaries of the Unit - including electrical fixtured, appliances, air conditioning and heating equipment, water heaters, or built in cabinets.

Important Points to Consider:

- Although the association policy includes coverage for water damage (i.e. pipe burst, overflow of water from a unit) to the building, the policy DOES NOT cover water damage to YOUR PERSONAL PROPERTY, "additions, or alterations and improvements & betterments" as defined above.

- "Mandatory Unit Owner Coverage" as defined by the Illinois Property Condominium Act. The board of directors may, under the declaration and bylaws or by rule, require condominium unit owners to obtain insurance covering their personal liability and compensatory damages to another unit caused by the negligence of the owner or his/her guests, residents, or invitees, or regardless of any negligence origination from the unit.

Other Considerations for your Condo Policy Include:

  • - Coverage for back up of sewer and drains

  • - Increased limits on Loss of Use

  • - A "Special Coverage Form" for Improvements and Betterments and Personal Property

  • - Extended Replacement Coverage for Improvements and Betterments

  • - Increased limits on Loss of Assessment Coverage

  • - Umbrella Liability

Please call with any other questions or concerns.

Dan Zeiler

dan@zeiler.com

708.597.5900 x134

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