LAKESIDE TERRACE TOWNHOUSE ASSOCIATION INC.

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Frequently Asked Questions

Yes, for the following reasons:

· The Association’s policy will not cover the unit owner’s personal property — clothing, furniture, electronics, etc.

· The Association’s policy does not provide :Loss of Use” coverage.  For e3xample, if a fire causes a unit/building to become uninhabitable, the unit owner will have to find temporary lodging while the repairs are ongoing.  The unit owner will need their own unit owner policy to cover additional living expenses resulting from the fire — increased expenses for meals, lodging, kenneling of pets, etc.

· The Association’s policy does not provide any type of “Fair Rental Value” or “Loss of Income” coverage for those owners who have a rental Condo unit.

· There may be some losses that are not covered by the Association’s policy that may be covered by the unit owners’s policy.  An example would be if the roof leaked because it was just worn out and causes water damage to the interior of a unit, the Association’s policy would not provide coverage for the roof or the ensuing water damage.  The unit owner should file a claim with his/her own policy to see if there is coverage.  Another example, the association could/would make the unit owner responsible for the association’s deductible ($10,000) if their unit sustains damage — their unit owner’s policy may provide coverage for that deductible assessment.

· The unit owners should also get a policy that offers Loss Assessment coverage.  This would kick in if for some strange reason, the total project is destroyed and there is insufficient coverage under the Association Policy to pay for all of the repairs to the common areas or some limited common areas.  If the Association assesses the excess amount to each unit owner, their individual unit owner policy may have coverage.

· If there is a catastrophic loss and the insurance proceeds are insufficient to cover the complete repair/rebuild of the Project, the Association may vote to rebuild based upon the original plans — thus any upgrades, improvements, or betterment made to the interior of the units may be the owner’s responsibility.  Coverage may apply under the unit owner’s policy.

· The Association’s policy will not provide liability coverage if someone is injured within an individual unit.  The Association’s policy would provide coverage for injuries occurring in the common areas and some limited common areas, but normally not injuries/accidents occurring in the individual units (exceptions would be any conditions within the units that are the Association’s responsibility).

Question 1  Since there is a  “Blanket Coverage”  for the LTTA’s buildings, do the individual unit owners still need to purchase their own insurance policy?

Question 2

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Question 4

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Question 5