Condominium Insurance
When looking for condominium insurance there are crucial questions to ask to help guide you to the coverage you need. To state the obvious, a condominium is not the same thing as a house. Usually, there is no backyard or basement, and you don’t have to worry about cutting the grass or shoveling the front walk. Insurance is another area where homes and condos differ. Condo owners are typically responsible for insuring just a portion of their property on their own. However, rules differ from complex to complex, and it is important to ask the right questions to ensure you have proper insurance coverage.
What are your ownership and insurance responsibilities in the condo association’s Master Deed? In other words, what does the association expect from you regarding insurance requirements? Individual owners have a collective responsibility for insuring areas of the complex owned in common - building exteriors, hallways, pool area, etc. Individual unit owners typically are responsible for separately insuring everything within the four walls of their unit. The condo association’s master policy, as well as association rules, should spell out clearly which parts of the complex are insured through association dues and which parts are not.
How much is the association deductible? This is an area many condo owners don’t think about. Condo insurance typically includes commercial insurance coverage for the commonly shared building and common areas which usually includes an association deductible. In the event of a natural disaster or hurricane or whatever and the condo association needs major work the association will tender the claim to their commercial insurer. But would be a deductible and that deductible would be assessed against all unit owners so if there were 10 unit owners, it would be divided 10 ways. You could really be hit with bill you weren’t expecting or did not know about if you didn’t do your homework.
It is also important to know how to lower you condominium insurance. Several questions need to be asked that can factor in to reducing your costs.
- Have your agent properly estimate the value of what is being insured by you for your condo.
- Apply modification credits. For condos that can mean sprinkler systems and central monitoring burglar and/or fire alarm.
- Shop around. It is often inconvenient and may require some effort but finding the right policy and coverage can save you money in the long run. Finally, keep in mind that there may be discounts. Many companies offer discounts such as non-smoker or retired.
Condo Association Questions
So you are thinking about buying a condo but you are not sure where to start. There are many aspects to buying condos such as what areas, how big and what condo association questions should I be asking. Condo associations were originally created as a legal entity for the purpose of developing, managing and selling the development. It allows the developer to exit the financial and legal responsibilities typically by transferring ownership to the condo owners after selling off a pre-determined number of units. Once this is done the important thing for any condo buyer to know regarding the association that will be overseeing their common property is what are the responsibilities of all involved? You are spending your hard earned money and the last thing you want to do is get stuck with a lemon or live someplace that is not what you expected.
There are a lot of condo association questions to ask before you buy but we will only cover a few.
- 1. Ask to see the condo association board meetings minutes. What have the owners been talking about, what are their concerns and issues, are there a common thread for some of the complaints, etc.
- 2. What is the renter to owner percentage? If the renter population is very high are there rental policies in place either in the bylaws or by an amendment. Always remember the association can change its bylaws so make sure you are well informed of any changes.
- 3. Ask for a copy of the certificate of insurance from the association which is a summary of the association's policy. Are the replacements costs enough to cover rebuilding if need be? Another important area to question regarding the association insurance policy is if it has a building ordinance clause. This clause insures that the building will be up to the current code if rebuilding is required.
- 4. How much is the repair fund? This will tell you if the association has the funds available for maintenance. If the fund is not high enough then the complex may not be as well kept as it should be or be living beyond its means.
- 5. Ask to see the delinquency rates of the current owners. When people do not pay their association dues on time it may be a sign of discontent and you will need to find out why.
Asking the right condo association questions is as important as finding the right real estate agent or the right financing. We all want to make sound financial decisions and the only way to accomplish this is with the right questions.
Condo Associations
So you are thinking about buying a condo but you are not sure where to start. There are many aspects to buying condos such as what areas, how big and what condo association questions should I be asking. Condo associations were originally created as a legal entity for the purpose of developing, managing and selling the development. It allows the developer to exit the financial and legal responsibilities typically by transferring ownership to the condo owners after selling off a pre-determined number of units. Once this is done the important thing for any condo buyer to know regarding the association that will be overseeing their common property is what are the responsibilities of all involved? You are spending your hard earned money and the last thing you want to do is get stuck with a lemon or live someplace that is not what you expected.
There are a lot of condo association questions to ask before you buy but we will only cover a few.
- 1. Ask to see the condo association board meetings minutes. What have the owners been talking about, what are their concerns and issues, are there a common thread for some of the complaints, etc.
- 2. What is the renter to owner percentage? If the renter population is very high are there rental policies in place either in the bylaws or by an amendment. Always remember the association can change its bylaws so make sure you are well informed of any changes.
- 3. Ask for a copy of the certificate of insurance from the association which is a summary of the association's policy. Are the replacements costs enough to cover rebuilding if need be? Another important area to question regarding the association insurance policy is if it has a building ordinance clause. This clause insures that the building will be up to the current code if rebuilding is required.
- 4. How much is the repair fund? This will tell you if the association has the funds available for maintenance. If the fund is not high enough then the complex may not be as well kept as it should be or be living beyond its means.
- 5. Ask to see the delinquency rates of the current owners. When people do not pay their association dues on time it may be a sign of discontent and you will need to find out why.
Asking the right condo association questions is as important as finding the right real estate agent or the right financing. We all want to make sound financial decisions and the only way to accomplish this is with the right questions.
Condo Associations
Condo associations are critical to keeping a condo complex running smoothly. It’s the management team of a business. This group of five, the president, treasurer, secretary and two board members make the group up. These are the five board members known as the condo association board. It’s up to these five people to run an entire condominium complex.
Do these condo association board members get paid? Typically they do not. They are elected to the board by the condo owners too serve the term, usually a year, free of charge. This is asking a lot of these people based on the number of challenges that come their way over that year’s time. Normally after one year, there is a vote to see if they will either be re-elected or a new board will be put in place to run the condominium complex.
Condo associations make decisions on a number of things including what to renovate in the complex, what to do about a dog that constantly barks after hours and if a ceiling leaks water into another condominium. They handle calls for maintenance and look to find the best prices for all the services that need to be done to run the complex. Condo associations, just like anything in life, can make or break the organization of the development based on how much effort is put into the management end. If you have a condo association that is right on top of things, you’ll find the complex running much smoother and efficient. This is so important for the reselling of the condo. If you want to sell your condo and you have a condo association that is very efficient and keeps everything running excellently, the new buyer is going to be more attracted to your particular condo complex.
This shows you how important it is to have the right people in place running the condominium association. If you hire the wrong people, it can cost you thousands in re-sale of the condo. Though you’ve kept up your condo inside its four walls, the complex itself can show horribly. The complex may actually be kept up, but the books (financials) are in disarray causing a buy of a condo to look elsewhere. This could tremendously impact the sale of your condo and your financial future. Make sure when you buy a condo, you check everything you can about the condo association and how it’s running everything.
Why you Should Work with a Realtor
If you happen to be considering selling your condo, working with a realtor is imperative. A professional realtor can provide you with the guidance and a multitude of opportunities that are unavailable to people that are selling by owner. There are a number of benefits to working with a trained realtor, especially when you are selling your condo.
Realtors have access to a number of resources that can make a huge difference when you are selling. They can use the MLS database which offers comprehensive information on your property. Real estate ads in newspapers are not very informative. They typically offer the bare minimum facts about the condo such as the number of bedrooms and baths. The MLS listing includes a wealth of information and photographs. You can showcase your condo for sale and earn the interest of potential buyers by enticing them with information. You can include information about the location, for instance, if you are close to public transportation or a park. You can also include any updates or renovations you have made. The MLS database is a great way for a realtor to showcase what makes your condo stand out when compared to other condos for sale in the area.
In working with a realtor, you can also trust that they know the market around your property. They will know what condos in your area are going for and they can help you price yours accordingly. Depending upon the features and the amenities that your condo has, a trained realty professional will be able to help you price your condo at a price that will get it sold.
Realtors also have the ability to attract more potential buyers to your condo than you can. If you attend an open house thrown by a realtor and compare it to an open house that is held by owner, you will clearly see this fact illustrated. Realtors know the market and they know how to attract buyers in the market. A realtor will find you many more potential buyers to come and see your condo.
When working with a realtor, you can also expect everything to go much more smoothly at your closing. Realtors know about all of the required paperwork and they will walk you through the entire process to make sure that there aren’t any mistakes or last minute changes that you do not approve of. They can provide you with peace of mind that the entire transaction will be quick and successful.
Why Find a Rent to Own Condo
Many people are looking to find a rent to own condo. These types of opportunities are great for people that may have some credit problems or that are unable to afford large down payments. It is very hard to get ahead when you are throwing away several hundreds of dollars a month in rent. Fortunately, rent to own condos make it possible for you to eventually take ownership of your property.
Lenders have made obtaining loans very difficult. With the current state of the economy, it is harder than ever before to secure credit. If you have made a few mistakes in the past with your credit or if you encountered bad extenuating circumstances over time, such as medical problems or unemployment, your credit may have been adversely affected and could make it virtually impossible to get a loan. Just because you may have hit a few rough patches in your past, it does not mean that you are unable to be financially responsible right now. A rent to own condo will give you the chance to take a positive step in improving your financial future. If you can not secure a loan, look into rent to own options.
Many families also live paycheck to paycheck. While these families pay all of their bills on time and may have excellent credit, they are unable to save up enough money to use as a down payment on a condo. When they find out that the dollar amount that they spend on apartment rent every month could be equivalent to a monthly mortgage payment on a condo, it can be very disappointing. By taking advantage of a rent to own condo, you will not need to come up with a large down payment. You can pay your monthly rent regularly and it will be applied towards the cost of the condo. This is a great option for a person that is looking to own property but unable to come up with a lump some of money.
Instead of throwing your hard earned money away every month on rent, make a choice to find a rent to own option so that you will have something to show for your money. Apartment rents are on the rise while condos are more affordable to own now than they have been in recent years due to the latest decline in property values. You can find many of these options available on great condos.
How Condo Law Applies to you
Many condo residents are unaware of the condo law that presides over their condominium building. But these laws directly affect these residents and the amount of money that they pay in assessment fees. Your condo has a board of members that choose an association that takes care of the needs of the residents. The association is responsible for providing a number of services for the residents and they must always make sure that they are within the condo law in all of their dealings. In order to ensure that residents are satisfied with the performance of their association you must choose a reliable company to manage your condo. All condo association management companies are not equal in the quality of service that they can provide.
A lot of residents are often unhappy with the association representation that they currently have. Many of them complain of high association fees that garner them little attention from the association. When a condo owner has a concern, a question, or a complaint, they should be able to communicate it to the association immediately. Condo association management companies need to work with the condo owners to find solutions to any problems that they may have. Your condo association provides you with a service that you pay for, you have every right to expect that they treat you with courtesy and that they carefully listen to any problems that you may be having and that they rectify them in a timely manner.
The association is responsible for providing a number of services including collecting monthly association fees from residents and initiating collection proceedings if necessary, resolving disagreements between condo owners, organizing daily maintenance of the property, conducting board meetings with members, assessing potential improvements to the property, actively exploring and employing ways to guarantee that the property run efficiently, and performing general accounting duties. They are also responsible for handling developer and turnover issues and civil litigation.
Condo associations are charged with the responsibility of resolving disagreements with unit owners, contractors, management companies, and even local governments. They must follow all pre-described condo law that regulates these matters. Your condo association should always work with its residents and remain within the law. They must be prepared to file lawsuits against contractors that do not perform work in accordance with pre-established contracts. Whenever these disputes arise, your association should be ready and able to take the necessary steps required to negate the issue.
What your Condo Association Should do for you
Many condo residents are happy where they live and they love their condo but they are very displeased with their condo associations. There are a number of associations that do not provide their residents with high quality and fast service. Condo owners want disputes to be resolved quickly and they want to have a voice and opinion on what happens to their property. Complaints must always be handled in a timely and satisfactory manner. Improvements and fees are hot topics amongst condo owners and they want to make sure that they have an active say in decisions regarding these matters. By hiring a professional condo management company to handle these matters you can guarantee that you and your fellow residents will be happy.
If you reside in a condominium complex and are unhappy with your current association, you have every right to find a reputable company to manage the property. Make sure that you locate a professional company that has years of successful experience in condo associations management within your area. Whether you reside in a very small condo building or a larger complex housing several hundred units, a competent condo association management company can provide you with a number of useful services that will guarantee that you and your fellow residents remain happy while the company successfully manages many of the responsibilities associated with your condo.
They can perform a number of duties including: collecting monthly association fees from residents, mediating disputes and disagreements between condo owners, managing daily maintenance and initiating contracts regarding the property, negotiating with vendors and contractors for lower rates, conducting board meetings, evaluating and assessing improvements to the property, implementing procedures to help the property run more efficiently, and performing general accounting duties. All of these duties must be performed in a timely manner with the best interests of the condo residents in mind.
These are important matters to residents and need to be handled with fairness and courtesy. By hiring a reputable and experienced condo associations management company to handle these responsibilities you can rest assured that you and your fellow residents will be happy with the services that they receive and that their complaints are resolved in a timely and satisfactory manner. You want your fellow residents to be as pleased with their condo association as they are impressed with the condo itself and a high quality management company will guarantee satisfaction.
