Condos: Bare Walls vs Walls-In vs All-In
Bare walls vs Walls-In vs All-In – As a condominium owner, it’s easily confused which property is covered by the condominium homeowner association’s (HOA) master policy, and what unit-owners are responsible for insuring themselves. There are a few different types of coverages and each step up adds additional coverage for the individual unit owner. It’s important to define a few key terms and understand where to find this information so you can make the right decision when choosing your coverage.
First things First
It’s important to first reach out to the HOA for a copy of their governing documents and/or master policy. This should contain information to clarify which party is responsible for insuring certain property within the unit. Generally, you will see three types of coverage listed: “Bare Walls”, “Walls-in”, or “All-In” coverage, all of which are explained in greater detail below:
“Bare Walls”
The definition of “Bare Walls” can be interpreted quite literally: Simply put, the HOA is insuring the inside and outside of the building up to the bare walls (ie – drywall or sub-floor) of each unit. This includes any common areas of the building used by all residents. The coverage this offers to individual unit owners is limited, and they are responsible for insuring everything inside their unit including items like built-ins, fixtures, appliances, and personal belongings.
“Walls-In”
Under the “Walls-In” style of coverage, the Association is responsible for insuring the building and each unit back to the condition of the original construction. The unit owner is responsible for any improvements of betterments that have been made to the unit since the original construction. This includes items such as new appliances, built-ins, flooring, lighting fixtures, etc. and the owner will need to carry adequate limits for these items as well as their personal belongings to be replaced.
“All-In”
An easy way to think of it is that the Association is “All-In” and is responsible for insuring the inside and outside of the building and each unit back to its pre-loss condition. This includes any additions, alterations, and improvements the owner has made to the unit. This is the most inclusive coverage, and only requires the unit owner to insure their personal contents and belongings in the unit much like an apartment complex.
Personal Property
Just as a helpful side note, it’s important to obtain adequate limits of coverage for your own personal contents and belongings as this will always be the individual unit owner’s responsibility to insure. An easy rule of thumb is if you turn the unit upside down, anything that falls out would be considered personal property.
If you’re wondering how much contents coverage you need – One way we coach clients is to take a home inventory. Walk from room to room and take video/make a list of all items, including what’s included in each cabinet, and then approximate the values for everything in each room. Add the values up, and you have a good estimation and a better comfort level with what limit you may need. This can also be incredibly helpful in a claims scenario, as it ‘s very difficult to remember what you have in each area of the home when you’re under the stress of a claim.
Contact Us
If you’re unsure of whether your policy carries sufficient limits, or just want to learn more, click the link below to set up a time to contact Charlie and our team at Robertson Ryan today. We’ll help review your association documents, estimate improvements & betterments you’ve made to the unit, and ultimately land on a coverage limit that’s right for you.
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Sourced in Part From: Zywave