Insurance Information for Owners and Renters
INSURANCE INFORMATION FOR OWNERS AND RENTERS
(2026-2027)
By Robin Manougian, CIRMS
as prepared fir renewal year 2025-2026 with dates updated
Parkside Condominium Association carries insurance as required by our governing documents, the Maryland Condominium Act, or as options selected by the Board of Directors. Included among these policies is Property Coverage (including $1,000,000 of Earthquake Coverage and $1,000,000 of Flood coverage), Boiler and Machinery/Equipment Breakdown, General Liability, Business Auto Liability (for the Association's service vehicles), Umbrella Liability, Directors and Officers Liability, Crime/Employee Dishonesty (Fidelity), Underground Fuel Storage Tank Liability (for the heating oil tanks), Workers Compensation, Volunteer Accident Plan, and Cyber Liability coverage. This article will focus on Property Coverage for the most part to assist owners in the purchase of or update their existing HO-6/condominium unit owners' policies.
The Property section of the Master Policy covers all real property belonging to the Association (buildings, amenities, fences, signs, etc.). The Property policy per the governing documents and Maryland law covers the interior of each unit as it was originally deeded by the developer, but will not include improvements, betterments, alterations or additions made by current owners or acquired from any previous owner. Whatever was originally conveyed to a unit – original grade floor, ceiling, and wall coverings (paint), cabinets, counters, appliances, fixtures, and equipment – is covered by the Master Policy. Whatever improvements, betterments, alterations, or additions an owner makes or acquires from a previous owner is the owner's responsibility to insure.
The Property policy covers sudden and accidental losses. Common exclusions are wear/tear/age, water seepage, pest and rodent infestation, and maintenance issues that create cumulative damage over a period of time.
Property Coverage is subject to the following deductible schedule:
$ 25,000. per occurrence for all Property losses except:
$ 50,000. per occurrence for Earthquake losses
$ 25,000. per occurrence for Flood losses
Owners or Renters Insurance Coverage
While neither Maryland law nor the Association's governing documents require owners to carry their own policies, it is strongly recommended that individual residents (whether owners or renters) carry their own condominium unit owner (HO-6) or renters'/tenants' (HO-4) policy to coordinate with the Master Policy and to protect their own property and liability in the event of loss. Our personal lines practice can provide a quote, or policies may be secured from the carrier underwriting an individual's automobile liability policy (Allstate, Chubb, Erie, Farmers, State Farm, Nationwide, Geico, and USAA are carriers you may contact; USAA is available to military/former military, and family). The amount of insurance on a resident's personal property should be adequate to replace the contents of the unit and should be written on a full-replacement basis so that in the event of a loss, the lost item(s) can be replaced at current values rather than the original cost less depreciation.
It is suggested that you take inventory of what you have in your unit by itemizing everything in each room. Determine the cost to replace your belongings and provide your insurance agent with the total value. In subsequent years, an inflation guard is built into the policy.
Personal Liability protection covers injuries or property damage sustained inside an owner's unit by people other than the unit owner (the Association's Master Policy's General Liability coverage extends to all common areas and amenities, but not to inside the individual units). Personal liability limits start at $300,000 (though $500,000 is recommended); this limit may be increased or supplemented by a personal Umbrella.
Important features of the standard unit owner policy include:
(1) Dwelling Coverage: At time of loss the Master Policy will pay to repair or replace your unit per its original specifications – original grade floor, ceiling, and wall coverings, cabinets, countertops, appliances, fixtures, and equipment – using new, like kind and quality materials. Dwelling Coverage under your HO-6 policy covers any improvements, betterments, alterations, and additions you may have made to your unit or that you may have acquired from any previous owner. Please select a coverage limit adequate to cover your improvements and betterments, but not less than $10,000. Please note that some lenders require that you carry Dwelling Coverage in an amount equal to 20% of the unit's appraised value. While you or a previous owner may not have made many or any improvements, please adhere to the terms of your loan when securing Property coverage under your HO-6 policy.
(2) Personal Liability Coverage: Protects an owner's personal liability from bodily injury occurrences to others that occur within the unit. This coverage also addresses property damage you may cause to another unit owner's improvements and betterments and/or personal property that results from a property loss that originates in your unit.
(3) Loss Assessment coverage is for the rare occasion when Parkside sustains a large property or liability loss and the association's policies do not fully cover the loss. In such situations, owners may be assessed their proportionate share of the uninsured amount of the loss. Limits under the HO-6 policy start at $1,000 but may be increased. This coverage, depending on the insurance carrier, may also be used to pay an owner's responsibility for payment of the Master Policy's property damage deductible. It is important to note that Loss Assessment coverage will not pay for scheduled special assessments of the council of unit owners.
(4) Additional Living Expense/Loss of Use Coverage pays for you to live elsewhere should your unit sustain a large loss, and the damage and necessary repairs prevent you from living in the unit during the period of restoration. Additional Living Expense will pay your expenses (hotel or rental costs, meals, and other forms of additional expenses) up to the policy limit which is usually written at 50% of your personal property limit, for at least 12 months. Ask your carrier for the maximum time available.
IMPORTANT: The Master Policy WILL NOT pay for a displaced owner/renter to live elsewhere during a unit's repair. In addition, please note that if you are forced from your unit while repairs are being made, you must continue to pay any mortgage payments you may have, as well as your condominium fee.
* DEDUCTIBLE RESPONSIBILITY: Maryland law (as of October 01, 2020) automatically allows for the shift of the Master Policy's deductible, up to $10,000, to the unit owner from whose unit a loss originates regardless of the cause. Parkside (as of August 01, 2025) carries a $25,000 per-occurrence Property damage deductible. In the event of a loss originating from a unit, the owner would pay the first $10,000 of the property damage deductible, and Parkside would pay the balance of $15,000. (The deductible for losses that originate from a common element, a common area, or from outside the buildings is fully an Association expense). Please make certain to advise your HO-6 carrier of your responsibility so that you are covered for the maximum responsibility ($10,000). Deductible responsibility, depending on your carrier, can be covered under the HO-6 policy's Dwelling for Building coverage limit, or again, under the HO-6 policy's Loss Assessment.
Additional Information about the HO-6 and other personal coverages:
An HO-6 policy can include a deductible as low as $250, but increased deductibles may be applied to save premium. Select a deductible that will not be a hardship at time of loss.
All unit owner and tenant policies have specific limitations on certain valuable items such as jewelry, watches, furs, silver, collections, and antiques. Such valuables should be scheduled on the policy at their appraised value. These items would then be covered on an all-risk basis for replacement at the scheduled value.
Ask your agent to include sewer backup coverage under your policy.
The Master Policy includes an enhancement limit of Earthquake Coverage and non-special flood hazard area Flood Coverage. You may want to ask your agent if these coverages can be written under the HO-6 policy to cover your contents/personal property and improvements and betterments.
If you do not presently carry an Umbrella policy, ask your agent to provide an option. A personal Umbrella can be written to extend the limits of your personal liability and automobile liability limits by whatever limit you select.
Discuss your need for Cyber Liability insurance with your broker, including Identity Theft Coverage. This coverage can be written to protect you in the event of a personal computer breach.
If you or someone who uses your vehicle participates in a ride-sharing arrangement using vehicles for hire (such as Uber or Lyft), please note that your personal automobile policy likely excludes such activity. Loaner vehicle services such as Zipcar operate similarly to a car rental agreement wherein the car rental service carries the insurance; you may be asked to sign a loss damage waiver. Make certain you are properly covered.
Non-resident owners who lease their units should be aware of their special insurance needs. These include not only personal liability coverage, but also coverage for any alterations, additions, betterments, and improvements they may have made to the unit or acquired from a previous owner, as well as loss of rental income coverage. You may obtain these coverages either by an endorsement to your homeowner policy or through a separate fire policy.
All owners should understand that if they are displaced for any period of time in the event of a loss (catastrophic or otherwise), that you are required to continue paying your mortgage AND your condominium fee. Neither the Master Policy nor the homeowner's insurance policy will make these payments for you.
IMPORTANT: If there is a loss in your unit and your personal property/contents need to be moved to another part of your unit or placed in storage, please contact your HO-6 carrier; content manipulation in most cases is covered by your owner's policy; neither the Master Policy or the Association is obligated to pay the expenses of storage or moving personal property.
Proof of Insurance Coverage
If your mortgage company notifies you that they need evidence of Master Policy coverage, you may order a certificate of insurance at https://www.condocertificate.com.
Claim in Your Unit?
The insurance market is challenging and premiums, especially for older condominiums, continue to rise. So that we can assist you and control the severity of a claim, please report all damage to management as soon as soon as you discover the loss. If a loss originates in your unit or from a component that services only your unit, you will be responsible for the Master Policy's deductible up to $10,000 (which, again, can be filed through your own carrier less your own policy's deductible), but with the exception of damage to personal property/contents and improvements and betterments, the Master Policy is always primary. Your HO-6 carrier can assist you with damage to any improvements and betterments and to personal property.
Please contact an insurance provider of your choice
for further information about the HO-6 policy.
