Whether you live in a co-op or a condominium, you should maintain dwelling coverage, also known as “improvements or betterments” or “additions and alterations” coverage. Most co-op or condominium master policies will typically follow what the bylaws indicate, which, in most cases, means the basic structure and fixtures provided by the original builder or developer and not any modifications or improvements made by any current or prior owner. Dwelling coverage for an owner provides for what the owner is responsible for in the unit.
Typically, that may include:
- Upgraded Flooring: Custom hardwood floors, tile, or carpeting that replace standard builder-grade materials.
- Kitchen Upgrades: High-end appliances, custom cabinetry, countertops, and backsplashes.
- Bathroom Renovations: Upgraded fixtures, custom tiles, and luxury bathtubs or showers.
- Built-In Features: Custom built-in bookcases, entertainment centers, or shelving.
- Lighting and Electrical: Custom lighting fixtures, additional outlets, or upgraded wiring.
- HVAC Upgrades: Enhanced heating, ventilation, or air conditioning systems installed by the unit owner.
- Wall and Ceiling Treatments: Custom paint, wallpaper, or ceiling moldings and finishes.
- Window Treatments: Custom blinds, shutters, or window installations.
- Home Security Systems: Any installed security systems or smart home features.
- Structural Changes: Any interior structural changes or renovations that alter the layout or configuration of the unit, such as removing or adding walls.
Some bylaws indicate that the association is only responsible for the structure and the bones of the building, such as plumbing & electrical behind the walls. This puts more of the responsibility on the unit owner.
Because the responsibility can vary from building to building, it’s essential to accurately assess the value of all improvements and select an appropriate coverage limit to ensure adequate protection. Your unit is going to be one of your largest investments, and it is important to make sure you are covered for its full replacement value. For example, if a fire destroys your new custom kitchen or water damage from a broken pipe affects your upgraded flooring, Dwelling coverage will cover the cost of restoring your unit to its previous customized state.
You never know when an insurance claim might arise, so it’s best to keep detailed records and receipts of all improvements and upgrades to provide proof of value. Give us a call anytime to understand your coverage options and ensure that any modifications are adequately protected.
