Coverage for the outdoor property at your community association can be a little confusing sometimes. What your building is covered for is not necessarily what your outdoor property is covered for.
Most insurance policies list outdoor property as fences, trees, shrubs, and plants (other than “stock” of trees, shrubs, or plants), and some policies even include outdoor signs that are not attached to your building.
The outdoor property that appears in most claim situations for condos and co-ops are fences and trees. What is most likely to damage your fence? In my experience, there are two things that are usually responsible – vehicles and falling tree limbs (wind damage).
Damage to your building is usually covered when caused by these perils. Why? Because you are likely covered on a “Special” form, which covers you for sudden and accidental losses unless otherwise excluded. Wind damage and damage from vehicles are typically not excluded. But what happens when your outdoor property, such as a fence, is damaged by wind or falling tree limbs? This depends on who your carrier is and what they are willing to insure your other structures against.
Outdoor property is covered on a “Named Perils” basis, which is essentially a list of perils that you are covered against. If the peril that damages your outdoor property is not listed, you will not be covered. The list of named perils differs from carrier to carrier, so be sure to review this section of your policy with your account manager to understand what you may and may not be covered for.
Here is an example of perils covered for outdoor property by two separate insurance carriers:
Carrier 1 covers
- Fire
- Lightening
- Explosion
- Riot or Civil Commotion
- Aircraft
Carrier 2 covers
- Fire
- Lightening
- Explosion
- Riot or Civil Commotion
- Aircraft
- Vehicles
- Vandalism
- Theft
As you can see, the second policy covers your outdoor property for three more perils than the first policy, including the all-important “Vehicles” peril. You can also see that neither cover damage from wind. Outdoor property coverage may also have a separate limit of insurance, meaning that the carrier caps losses to no more fixed amount listed in the policy.
Contact us anytime to ensure that you’re properly covered. We’re always here to help.
