10 Tips for Beach Condominium Owners

As a condominium unit owner, you have the risks of both an association member, property manager, and a homeowner. We recognize these specialize needs and came up with ten tips for condo owners:

1. Get to know your neighbor.

   There is a sense of community in people who own condos. Living in close proximity to your neighbor you will share walls and common areas, as well as expenses for maintenance and insurance.  You’ll have to work with your neighbor on any repairs, daily upkeep, and future wants, needs, and requests.

2. Location, location, location.

   Find out what type of flood zone your condo is in. Most condo associations purchase flood insurance for the association’s most common elements. However the association has NO responsibility to cover your own personal property, including, furniture, electronics, clothing, and other miscellaneous items. Get flood insurance high enough to cover your interior structural obligations. Talk with us about Contents Coverage and Personal Property coverage after a loss from a flood. Keep in mind, most barrier island condos require the purchase of flood insurance at settlement.

3. Understand Insurance Coverages. 

   Review your Unit Owners Insurance which covers personal property and interior structures you are responsible for-  as well as premises liability of the unit interior, medical payments, and loss of rental income. Condominium Master Policy covers the building as described in the Master Deed, premises liability for common areas, pools, boat slips, docks, and detached structures. Broadening the Perils Covered. The basic structural coverage of the standard unit owners’ policy (HO 6) may have shortcomings.  Make sure coverage is special form as it provides the most extensive coverage.

   Review your Master Deed. Each Condominium Master Deed can be written differently. We advise that you review the insurance section to determine whether the Association or Unit Owners are responsible for items such as:

   • Interior Walls and Coverings
   • Flooring
   • Bathroom Fixtures
   • Windows and Doors
   • Appliances
   • Kitchen Cabinets and Countertops

4.  Renting the property.

   If you plan on renting your condo, research how much rent will be collected over the year.  Check with your tax advisor about how much of the upkeep and management expenses are deductible. Expect some minor damage. It just comes with the territory so put a little of the rent money aside for repairs. Lastly, keep an owners closet with a lock on it where you can keep your own towels, linens, paper products, etc. Keep in mind, you can get insurance protection if you suffer a claim and are unable to rent your condo. With coastal rentals getting premium dollars the loss of rents coverage on the HO-6 usually needs to be increased to protect the exposure. Also if you decide to rent out your unit, let us know so we can properly protect you.

5. An Umbrella for a Rainy Day.

   Make sure you have an umbrella policy or your unit owner policy is added to your umbrella policy. The main purpose of your umbrella policy is to protect your assets from an unforeseen accident or event, in which you are held responsible for damages. If you do not have an umbrella policy, speak with us to learn more.

6. Conduct a Home Inventory.

   Estimate the replacement cost of each of the structural items that is your responsibility. Write out a list of each type of item and don’t forget the labor costs in your estimate. That total should be the limit for building coverage on your HO 6 policy. Keep a photo record. Before you rent your house, take photos of the way you want each room to look so housekeeping can refer back. This will also serve as a record to keep track of any misplaced items post-season. Send us your photos and we’ll attach them in your account and you can always access via your McMahon Online Client Portal.

7. Reserve your weekends.

   Most people who rent their beach home also enjoy it for personal use. Don’t forget to mark the days you plan on staying there so they are blocked off.

8. Block personal password.

   Many smart TVs have password for apps like Netflix, Amazon, YouTube and Apple TV auto saved. To prevent unexpected charges on your credit card, make sure to disable any account in which movies and media can be accidentally purchased by renters.

9. Always have extras.

   Rather than replace lost cutlery or cups, buy extras in the beginning so you can replenish at the end of the year. Invest in double set of sheets for each room, too. Then, while one is being laundered, the other can be put immediately onto beds. Bonus: It also extends the life of your linens.

10. Make information accessible.

    On the first day of each renter’s stay, leave or have the cleaning service leave a paper with information such as emergency contact numbers, Wi-Fi code and any other house instructions in an easy to find place such as the dining room table.

We want to protect everything that’s important to you both at home and at the shore. No matter where life takes you, the McMahon Insurance Agency has you covered. We work with more than 40 of the most respected insurance carriers in the United States to ensure you get the right coverage for the best value. If you have any questions about your coverages, call us anytime at 609-399-0060.

Sources: Coastal Living