When disaster strikes a community, whether it be a fire, flood or other catastrophe, owners are often displaced from their homes for a considerable amount of time while restoration is completed. In a recent article, residents of a condo building will need to be out of their units for several months before repairs can be made.
When that happens, even though the owner’s unit may not be habitable, the assessment obligation to the association continues, and can put a strain on owners if they are also paying for alternative accommodations while their home is being repaired. Because of that, it is important to remind owners to make sure that their own insurance provides coverage for such alternative accommodations. Owners who rent their units out should also be reminded to insure that their insurance covers lost rents in the event their tenant is displaced during the reconstruction period.
For more about insurance, and whether you’re adequately insured, read our article “Insurance – Are You Adequately Insured?” or contact one of our attorneys.