You purchased a condo, closed on the mortgage loan, and are now ready to move in to your new home. But what happens if a pipe bursts and floods your unit or an electrical short causes fire damage to your unit? Should you call the insurance company or your Condo Association? Are you covered by your Condo Association’s master policy of insurance? What kind of insurance is required under your mortgage? Are you required to have an HO-6 insurance policy? These important questions need to be answered before you move into your new home. In discussion of these questions, I will utilize Fannie Mae requirements as a guidepost as Fannie Mae is the largest mortgagor in the United States and its rules and guidelines are often used by other mortgagors.
Continue Reading Your Condo Association Has An Insurance Policy, But Are You Covered?