Z3Dreamer
Thinks s/he gets paid by the post
IME, in townhouse developments, the HOA has a big blanket policy on the buildings. If a fire burns down a row of 5 townhouses, one policy covers loss. Blanket policies tend to be much cheaper than say 100 plus individual policies. And each owner then has something similar to a renters policy on contents and personal liability.
I was reading insurance policies and HOA covenants and restrictions for someone. Their HOA requires each owner to have their own building coverage. The agents says this is standard and that mortgage companies do a good job at making sure the coverage remains in force and is adequate. She claims that in the event of a loss, the mortgage company will not just be paid off. That the proceeds will be used to rebuild.
Questions:1) Does anyone else see this scenario as odd? More difficult to manage? 2) Does anyone have any experience with what happens in a multi-unit loss with individual coverage?
I was reading insurance policies and HOA covenants and restrictions for someone. Their HOA requires each owner to have their own building coverage. The agents says this is standard and that mortgage companies do a good job at making sure the coverage remains in force and is adequate. She claims that in the event of a loss, the mortgage company will not just be paid off. That the proceeds will be used to rebuild.
Questions:1) Does anyone else see this scenario as odd? More difficult to manage? 2) Does anyone have any experience with what happens in a multi-unit loss with individual coverage?