Twin Condominiums

September 10, 2012

We are more and more often being asked to insure twindominiums which, loosely defined, are a two-family home where each side is owned (and insured) separately by each home owner. Unlike a “normal” condominium association these twindominiums many times do not have association bylaws and, in fact, may not even be required to have bylaws depending upon local ordinances. In essence, each home owner is independently insuring (trying to insure) each side of the home on their own.

We have been issuing these as HO3s, basically insuring for half of the entire value based upon a completed RCE. This seems to work until we start having claims, especially weather-related like hail, where each has their own carrier/coverages and one company is saying there is coverage, one is saying there is not or only partial. Tough to explain when, for example, there may be hail damage to a roof and only half of the roof is being covered by insurance because there are two carriers adjusting the claim.

Any ideas on a better way to cover these? We have contemplated HO3 or BOP for entire “association” and then either HO4 or HO6 for homeowners themselves, or maybe DF on entire building. Any advice is appreciated.

Michigan Subscriber

If each half of the building has a separate deed with separate land description, then they need to be treated as separate dwellings, even though they are attached, unless the owners create some sort of association and put ownership of the building into the association, which we do not see happening. If the building is owned by one person then you can do an HO 06 or 4 for the person in the other half. Next best thing is to talk to both owners and see if you can get them to at least insure both sides with the same carrier. You really need to look at the deed and see exactly what each resident owns and then go from there. You have a unique situation.

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