How Much is Enough? Getting Adequate Homeowners Coverage

 Legendary funny man Benny Goodman once said, “I don’t want to tell you how much insurance I carry with the Prudential, but all I can  say is: when I go, they go too!” The comedian hits on all-important issue: how much insurance is too much, and  how much is not enough?  

 While individual residents of associations and community associations in New Jersey are  encouraged to carry adequate coverage in case of a severe accident or  catastrophe, their boards have a stake in their residents carrying adequate  insurance as well.  

 Cover Yourself

 While some community associations offer all-in coverage in their master  policy, the vast majority require unit owners to carry a homeowner's policy as  well. According to insurance industry blog, these  insurance policies usually cover things like accidental discharge or overflow  of water from your plumbing, fire and lightning, explosions, theft, vandalism  and malicious mischief, sudden accidental damage from smoke, and so forth.  

 Unit owners and shareholders need to begin their road to homeowner's insurance  by doing a little homework.  

 “First, homeowners need to go to the bylaws or proprietary lease because those  tell the owner what they should buy as far as what they have to cover,” says Alan Schulman, president at Waldor & Schulman, an insurance brokerage in Livingston. “Is it a bare bones policy where they have to cover the sheetrock in? Some times  the master policy will cover everything including kitchen cabinets and add-ins,  all the homeowners needs to insure is their personal contents. It really  depends on the building and they must read their documents.”  


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