Condo owner needs to talk to insurance agent

Q: I've lived in several condominiums over the years, and the only insurance I was required to have was for the innards of the structure. (I thought) the homeowners association would take care of insuring the outside, roof, etc.

I live in a townhome complex of 21 buildings, each with four (units). The (homes) are two-story (structures) and have two walls, which are not connected to a neighboring unit's walls. I cannot find a definition of the units in the covenants, conditions and restrictions.

Our HOA requires us to have insurance that covers the inside and outside of our unit. Does Las Vegas or Nevada have rules about what amount of insurance goes with what type of residence?

A: There are no Nevada Revised Statutes 116 laws that dictate specific insurance requirements for the kind of insurance on the property, or who needs to obtain the insurance at their cost. Generally speaking, you'd find this information in the insurance section of your CC&Rs.

I would encourage you to call the HOA's insurance agent and speak to him or her to determine the correct coverage.

Most units in Las Vegas have single-entity coverage not bare walls. Usually the CC&Rs identify what kind of coverage you will need to carry personally. Bare walls would require you to insure everything inside from the studs, but even then the actual structure is usually covered under the master policy.

With single-entity coverage the master policy covers all "association-owned and maintained property." So 99 percent of the time it includes the building itself.

I encourage unit owners to carry some building coverage, $25,000 to $40,000, on their own policies to cover any upgrades, as the master policy usually covers the builder's-grade items such as flat paint and low-grade carpeting. If you have hardwood or tile floors, granite countertop or wallpaper in your unit, the master insurance would not pay to have it replaced, but your own insurance would.

Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to Association Q&A, P.O. Box 7440, Las Vegas, NV 89125. Fax is 385-3759, email is support@hlrealty.com.