The Saint Paul Condo Blog

I was told over the weekend that either a malfunction or a fire happened in a 4th floor unit over at Printers Row.  The sprinklers went off and flooded the unit to the point where water was gushing out the window.  As any time there is a water issue in a condo building, the water takes the path of least resistance, so it spreads out and down.  Not sure how many units were affected, but I'm sure it was a mess.

This brings up a good point about insurance that I can never talk about enough.  As a condo owner, in most buildings Hazard Insurance is covered as part of the association dues.  Even lenders won't require you to get an insurance policy.  Most HOA's do highly recommend personal coverage (referred to as a HO6 policy).  Being that it's optional insurance, some buyers will overlook this policy.  This is the biggest mistake a first time buyer can make.  One of the items buried in the mass of paperwork that comes with the governing documents is a stipulation that if an owner causes damage to the building, the owner is required to pay the association's deductible.  Usually anywhere from $5,000 to $10,000.  One of the options of a HO6 policy is deductible coverage.  Which makes this inexpensive insurance worth 10x it's weight in gold.

If you set a low deductible for your personal HO6 policy ($250-$500), it shouldn't greatly increase your premium.  As an example, I have my policy set to cover my personal belongings and coverage for a $10,000 deductible costs me around $175 a year.

That additional $14.50 a month will save me if a sprinkler head went off or any other damage to the building (say driving a U-Haul into a main electrical bus - long story and no it wasn't me).

If you are unsure about your policy, call your insurance agent and check to see if your policy has deductible coverage.