I was recently asked the following question, and thought
that I would share the information here on my blog:
Is a Master Ins. Policy required for a 2 unit Condex that is only join by 1 fire proof wall in the garage?
The 2 units have separate well and septic and only share the actual entry of the driveway’s a Master Ins. Policy required for a 2 unit Condex that is only join by 1 fire proof wall in the garage?
The 2 units have separate well and septic and only share the actual entry of the driveway.
I can't believe that you are asking this question. Just last
Thursday I was faced with this same question on a condex that I have listed in this
area. The unit owners have two separate policies and NO master policy in place.
The attorney who is closing the loan for the buyer asked the seller for the
Master Policy. We called the insurance agent to obtain it and was told that
there is not one in place.
The seller asked the agent: "what if the
building burned, who's policy would replace the damage"? The agent who
sold the seller the policy said: " there would be one big legal battle
between the two companies".
That afternoon my seller insisted that a
master policy be put into place by midnight that night. In addition, the
bi-laws of this condex have indicated that a master policy would be in place
and the cost shared by the two unit owners. These folks are in violation of
their own bi-laws.
So to answer your question: Is it required?
That would
depend on the bi-laws or Condo docs that are in place. And/or the amount of
insurance coverage that you want. Do you want to be fully covered in the event
of accidental loss or just pretend that you are covered?
