Financing in 03815>Question Details

Sharon Patna…, Other/Just Looking in Manchester, NH

Is a Master Ins. Policy required for a 2 unit Condex that is only join by 1 fire proof wall in the garage?

Asked by Sharon Patnaude, Manchester, NH Sat Mar 8, 2008

The 2 units have separate well and septic and only share the actual entry of the driveway. This Property is located in Center Strafford NH.

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It is important (in addition to the previous answers) to read the condo docs and verify that there is an arbitration clause in case of disputes like painting, etc., so that costly legal battles are avoided. Find this clause and highlight it. If there is not one, think about amending the bylaws to include one before it's too late.
0 votes Thank Flag Link Mon Mar 24, 2008
Suzanne's answer which follows is a case in point for the insurance policy.

But you share more than just the driveway--there are other issues as well, including taxes and potentially other expenses which you will share--like the insurance. And downstream probably at some point you will have to replace the roof (even though only one side will be leaking at first), and if you have clapboard siding and wooden trim, someday you will want to paint the building, if it's vinyl that time is farther out on the future, but will come someday, so you will need to decide who pays, what the new color will be and things like that--these issues should be covered or at least addressed in your condo documents--along with the insurance issue. And you may have more in common--suppose you have water in your basement, will that make it's way into the other basement--if it's your leak will you be liable for damage to stored items in the neighbor's basement?

Reading and understanding the condo documents always seems like a homework assignment--but the topics will be near and dear to your wallet, so do yourself the favor of knowing what the common items and areas are, and how you are affected.
0 votes Thank Flag Link Sat Mar 8, 2008
I can't believe your asking this question. Just last Thursday I was faced with this question on a condex that I have listed in this area. The unit owners have two separate policies and No master policy in place. The attorney who is closing the loan for the buyer asked the seller for the Master Policy. We called the insurance agent to obtain it and was told that there is not one in place. The seller asked the agent, "what if the building burned, who's policy would replace the damage"? The agent who sold the seller the policy said " there would be one big legal battle between the two companies". That afternoon my seller insisted that a master policy be put into place by midnight that night. In addition, the bi-laws of this condex have indicated that a master policy would be in place and the cost shared by the two unit owners. These folks are in violation of their own bi-laws. So to answer your question, is it required? That would depend on the bi-laws or Condo docs that are in place. And/or the amount of insurance coverage that you want. Do you want to be fully covered in the event of accidental loss or just pretend that you are covered? If you want to draw from my 14 years of experience, please contact me directly. or 603-493-5561
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0 votes Thank Flag Link Sat Mar 8, 2008
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