.
Putnam Village
of
Wallingford Valley

Condo Insurance HO-6 Policy


Your Homeowner Insurance coverage provided by

the “Association” for 2025 has changed significantly.

 

By the "Declaration" the  Association is required to maintain a Master Insurance Policy that covers the buildings and common areas of our community for damage. For the last 47 years that policy covered the damage to your home with replacement costs but with a $5,000 deductible that you were personally responsible for.  That cost was generally covered by your personal HO-6 Condo policy. For 2025, in order to reduce costs in the Associations 2025 budget, the Council voted to increase that deducible to $25,000 that you are now responsible for.

 

As a consequence, it’s very important that you contact your Insurance Agent and consider having them increase your HO-6 insurance for “Additions & Alterations or Dwelling” by $20,000 if you wish to maintain the same coverage that you had in previous years.



Below is a link to the letter from our Community Insurance company that includes the $25,000 deductible that the Council requested and was sent to Putnam Village residents
on Jan 8, 2025.  
The full letter is provided in this link and should be provided to your insurance agent in order to decide what actions are necessary to remain fully insured.

Re: Condominium Insurance  From Risk Strategies by Dash & Love  12/13/2024

Dear Unit Owner:

We have the privilege of providing the insurance for Putnam Village Condominium. The Condominium Declaration and Pennsylvania Uniform Condominium Act determine the insurance responsibilities of the Association and Unit Owners. This letter is offered to clarify your insurance responsibilities so that your coverage properly dovetails with the Association’s.

Association’s Insurance

The Association’s Master Policy covers the building structure, common areas and building components within your individual unit, which existed at the time the building was converted to or built as a Condominium and sold to the original owner. Building components would include interior walls, floors, ceilings, cabinets, light and plumbing fixtures, appliances, and floor coverings contained within the unit when sold to the original owner. The Association’s policy will not cover and it is the unit owner’s responsibility to insure any improvements, betterments, upgrades or additions made within the unit after the original owner purchased it. Coverage for these items that are not covered under the Associations insurance would be provided by the Additions and Alterations or Dwelling coverage under your Condominium Owners Policy commonly referred to as an HO6.

The Association’s policy has a property loss deductible of $25,000 per occurrence, $25,000 per unit for Water Damage claims & Ice Damming claims, 5% per occurrence for Earthquake, and $50,000 per occurrence for Flood. In certain claim situations, you will be responsible for this deductible. In the event you are responsible for the deductible, it typically would be payable under your Additions and Alterations or Dwelling coverage referenced above.

The Association carries $1,000,000 of liability coverage and an Umbrella Liability policy providing excess limits of liability coverage. This coverage applies to the common areas. Each unit owner should carry their own liability coverage, which is also provided under an HO6.

Unit Owners Insurance

A unit owner should purchase a Condominium Owners Policy commonly referred to as an HO6. A typical HO6 has the following main coverage parts:

  • Additions & Alterations or Dwelling: This should cover the replacement cost of all improvements, betterments, upgrades or additions made within the unit after the original owner purchased it. It should also include the Association’s deductible for those situations where the unit owner will be responsible for the deductible as referenced above.
  • Contents: Your personal property.
  • Loss Assessments: Covers your share of an assessment charged against all unit owners. The assessment must be the result of a property loss or a liability claim that would be covered under your HO6.
  • Additional Living Expenses: Covers the cost of living elsewhere if your unit becomes uninhabitable, following a covered claim to your unit.
  • Liability: Covers bodily injury or property damage to property of others for which you are legally liable. An Umbrella Policy should be considered which gives you excess liability limits over the limit on your HO6.

Your HO6 can also cover valuable items such as jewelry, furs or silver. We recommend you schedule items of value.

Your property coverage should be written on a replacement cost basis without deduction for depreciation. We suggest you keep a written inventory with pictures of your property to help document your loss in the event of a claim.

This is a general summary of coverage under a Home Owners Policy. All coverage is subject to the terms, limitations and conditions of your individual policy and may not provide coverage for all perils including Flood, Earthquake or Sewer and Drain Back Up. You must consult with your own personal agent to determine appropriate limits and coverage. Investor owners and tenants have their own insurance needs which should be discussed with their agent. You should give a copy of this letter to your personal insurance agent.