Insurance Edit page

The unit owner’s insurance policy must insure the upgrades, enhancements and “betterments” made to the “as built” unit as well as the owner’s belongings and personal liability.
 

Declaration Insurance Requirements

Section 11.1 of the Residential Declaration requires each owner to maintain standard all-risk primary property insurance coverage on its unit from an insurance company licensed to do business in NC with an “A” or better Best’s Insurance Reports rating for not less than 100% of the replacement cost of the contents and betterments.

Section 11.7 of the Master Declaration, 2nd Amendment, effective and recorded 1/31/2023 requires each owner to keep continuously in force fire and casualty and extended coverage insurance upon such Owner's Unit, the improvements therein, and such Owner's personal property, as well as public liability insurance, and such other insurance coverage as such Owner may desire. 

Each Owner shall obtain and maintain public liability insurance coverage in the amount of at least $300,000 for bodily injury, including deaths of persons and property damage, arising out of a single occurrence.

Note that the Master Declaration is in the process of being revised to update the liability insurance coverage amount to be obtained by Owners. 

Draft of revised §11.7 - Insurance Obtained by Owners (Please use this guideline when updating your insurance policy for 2026.)

Each Owner shall obtain and keep continuously in force insurance coverage customary for condominium unit owners, including property insurance covering such Owner’s personal property and any improvements, upgrades, or betterments to the Unit not covered by the Association’s master property insurance policy, together with public liability insurance and such other insurance coverage as such Owner may deem appropriate.

Each Owner shall maintain property insurance in an amount sufficient to cover at least the applicable deductible under the Association’s master property insurance policy.

Each Owner shall obtain and maintain personal liability insurance coverage (either outright or through a combination of primary and umbrella coverage) in an amount of not less than $500,000 per occurrence for bodily injury (including death) and property damage arising out of a single occurrence.

Owner insurance policies are intended to be complementary to, and not duplicative of, the Association’s master insurance program.

Each Owner shall be responsible for maintaining the required insurance coverage at all times. The Association may, upon reasonable notice and for risk management purposes, request reasonable confirmation of compliance.
 

Insurance Recommendations

The Board offers the following insurance summary, guidelines and recommendations regarding insurance coverage, responsibility and processes. Owners are advised to consult with their insurance agent(s) to ensure compliance with the provisions of the Declarations and to ensure adequate coverage.
 

Residential Unit Owners Insurance Coverage Recommendations

There are at least five items that are not provided by the Master Association's policy that need to be maintained by each individual unit owner through an HO-6 or equivalent coverage form:

• Real Property Coverage – The Master Policy covers the “entire structure” as built. The Master Policy deductible is $100,000, so each unit owner is responsible for any damage occurring in their unit from a covered peril that is under this amount. Our insurance agent recommends to at least carry $100,000 or more, because even if the Master Policy covers the entire structure, coverage may be broader on the Unit Owner’s policy.  The Condo Statute in NC gives each unit owner the right to purchase coverage individually for their exclusive benefit.
   
• Personal Property – This important provision provides coverage for contents within an individual unit owner’s home - such as clothing and furniture, for specific perils.
   
• Personal Liability – This provides protection for bodily injury or property damage for which an individual unit owner may be held legally responsible. Because of the nature of condominium associations (proximate to neighboring structures and, in many cases, shared walls), most insurance experts agree that individual unit owners have a greater exposure than owners of single-family homes. If an individual unit owner should have a fire or other catastrophe emanating from his/her unit, the resulting damage almost always has impacted their neighbors. See above draft of revised §11.7 for the recommended amount of coverage. 
   
• Loss of Use Protection – This pays for necessary additional living expenses (hotel, restaurants, etc.) while an individual unit owner’s home is uninhabitable because of damage from an insured peril. (If the individual unit owner is an absentee owner, then coverage should be purchased for “loss of rents” protection.)
   
• Loss Assessment Coverage – This offers protection against an individual unit owner’s portion of a loss assessment levied by the condominium association on all members - for an insured peril – that exceeds the coverage under the Master Policy.

Who is Responsible? It wasn't my leak.

A condo owner is responsible for insuring their own unit. That means if there is accidental water damage (or other peril) from another unit which causes damage to your unit, it is your responsibility, not the other unit and not the Residential Homeowners Association or Master Association.

This can seem counterintuitive at first glance. However, unless there is some form of negligence involved in the other unit (usually above, below or adjacent), every unit owner is responsible for the damage to their own unit when there is damage from one unit to another. This is just a fact of living in a vertically stacked condominium building. These things will happen. For example, the unit owner upstairs will have no way of knowing of, or preventing, an issue if there is no evidence in their unit.


What Should You Do if there is Water Damage in your Condo?

The short answer is, it depends on the circumstances.

1. If you have isolated the source and scope of the leak to your unit and have been able to shut off the water, you are responsible for calling a plumber and making repairs. 
2. If it is not an emergency and water has seeped into your unit from another unit or if it has seeped from your unit to the Association’s common areas or into an adjoining unit, you should immediately notify the Community Manager.
3. If there is an active leak which you deem to be an emergency and you cannot immediately locate the source and a way of shutting off the water, call Security at 828-774-5542 or the Front Desk at 828-255-0303 and the staff will alert the building engineer on duty. Afterward, notify the Community Manager.

The Community Manager will assist in coordinating access to other units that may be impacted by the leak from your unit or access to another unit which may be the source of the leak. The Community Manager will also assist with further procedural recommendations depending on the circumstances and offer recommendations for plumbing and other service providers. The Community Manager will also notify the Board.

If the repair of the leak is significant enough to warrant an insurance claim, notify your property insurance company and the Community Manager will notify the Master Association insurance carrier. The insurance companies will generally apportion responsibilities.

It is helpful to document the damage with photos or video.


Know Where Your Water Shut-off Valve is Located and How It Works

It is your responsibility to know where your water shut-off valve is located and how it works as well as keeping it accessible. If you are unsure of either its location or operation, please email the Community Manager to schedule a brief walk-through with a member of the building Engineering staff.