Fee Simple refers to payment for exterior maintenance to your home, as well as any damage to the home itself; Gabrielle shares more details.
Fee Simple typically means that you are responsible for the payment for the exterior maintenance of your home as well as any damage to the home itself. The responsibility includes not only the structure but everything in it as well. Although a portion of your maintenance fee will be put towards insurance, it generally only includes coverage of the common areas and the land upon which the community is built.
Condominium ownership generally means that the association is responsible for the structure itself. The governing documents will dictate what the responsibility is of the association and owner within the unit. In the event of a covered peril- such as a fire or damage from a burst pipe- the owners would then need to insure what they are responsible for within the unit, as well as their contents, additional living expenses, insurance related assessments, and their liability.
As far as maintenance within the unit, what the association and owner are responsible for can differ greatly. Whether you are purchasing insurance on behalf of the association or as an owner, it is highly advisable that you familiarize yourself with the responsibilities of each party in the event of maintenance or damage from a covered loss. For more information please contact us.
