The Saint Paul Condo Blog

With the recent rash of malfunctioning sprinkler heads in downtown, it's time to address the often overlooked insurance that will Cover Your Assets...  It's the HO6 policy - An insurance policy that designed for condo owners.  At its core, it's like glorified renters insurance and it doesn't cost much more - but there's a huge difference...

First off, why is water damage such a nemesis of condo life?

I've talked to buyers before who were worried about the fire department not being able to reach them in case of a fire.  And honestly, I am much more concerned about the amount of water that comes shooting out of the sprinkler head in said fire.  The fire could be extinguished, but the water keeps coming, and it doesn't stop until someone closes the pipe.

Once you have a condo full of water, it doesn't like to stay put.  It starts to move, wanting to find it's way back home in the Mississippi.  Over at Printers Row, the head broke on the 4th floor (which is the top) and traveled all the way down.  City Walk's recent water fiasco, started on the 24th floor, and found it's way down to the 15th.  When the water does this, it doesn't just go straight down - it spreads out like a Christmas tree, creating a cleaning nightmare.

And here's where the expense comes in.  Having a restoration company come to rescue in the middle of the night with a dozen trucks, opening up walls, lifting carpet, etc...  The numbers add quickly.

Here's where the HO6 policy steps in

The HO6 policy has an additional (sometimes optional) rider that will cover your associations insurance deductible.  When a building like City Walk or Printers Row had their issues with water, the deductible will fall on the home owner where the problem started (that shiny coat hook on near the ceiling).  Typically, condo associations keep the deductible high for a few reasons.  First off is to prevent frivolous claims and second is to keep the policy affordable.  At the Pointe of Saint Paul (where I am on the Board of Directors) our policy has a $10,000 deductible and it still runs $60,000+ a year.

So, if the sprinkler head in your condo went off, would you have the $10,000 sitting around?  Also, nearly all associations have the condo docs written that if your unit is damaged from another, you cannot collect from the association.  It's up to you and your own policy.

Sprinkler heads are not the only water enemy to condos either, there's multiple ways to put a hamper on your day.  Here's a few that I've heard of recently.

Undersink water filter burst (condo was vacant at the time).
Overflow on a washer.
Overflow on a dishwasher.
Leak in ceiling.
Water pipe freezing, then bursting.

Did I mention that HO6 policies are cheap?

Hopefully all of this will inspire you to go out and purchase a HO6 policy (if you haven't already.  I know that if my condo is the fault of a large claim against the association, that I am covered.  I also know that my belongings (including that fancy floor I had installed) will be covered as well.

It's a piece of mind that's almost as cheap as a night on the town.

Thanks Mark and David for suggesting a great blog post!