Homeowners insurance at Nyland can be a bit tricky to understand as part of your home is covered by the HOA master policy and the remainder is covered by your personal H06 policy. So please ensure your insurance agent fully understands how our master policy works and that you have adequate personal coverage.
The Nyland HOA carries a 'master' insurance policy that covers all of the common property along with your home from the sheet rock out. That is, if your home burned to the ground, Nyland's master policy would rebuild the structure of the house including exterior windows, exterior doors, roofing, siding, plumbing, electrical, interior walls, and sheet rock. This type of coverage is often referred to as 'bare walls’. From the outside, the house would look just like it did before it burned down, but when you entered the house, it would be unfinished. That is, there would not be carpet, hardwood flooring, texture or paint on the walls, cabinets, interior doors, trim, light fixtures, sinks, etc. This is where your personal insurance policy comes into play. You should have enough personal insurance to cover the cost to finish the inside of your home. This is often referred to as 'walls in' because it covers everything from the bare sheet rock walls in. As a rough estimate, you should probably consider carrying about $100 per square foot of 'Building Property' insurance, which would be roughly $200K for a 2,000sf house.
Our CC&Rs requires every homeowner(s) to carry a personal H06 policy to cover what is not covered by Nyland's master policy. This H06 policy is often referred to as a condo or town-home policy. It should include:
Building Property: enough to finish the interior of your home (flooring, cabinets, light fixtures, etc.)
Personal Property: enough to replace your personal belongings (electronics, clothing, appliances, etc.)
Personal Liability: talk with your agent
Deductible Assessment: talk with your agent – maybe $25K to $50K
Loss Assessment: talk with your agent – maybe 25K to $50K
You also need to list the HOA on your personal insurance policy as an 'additional interest'. Just have your agent list the following as an 'additional interest':
The Nyland Community Association
3525 Nyland Way, Lafayette. CO 80026.
As a note, in 2018, Nyland was hit with a major hailstorm and had to re-shingle every building. The cost of repairs was over a million dollars, which was paid for by Nyland's master policy minus a deductible of roughly $550,000. Nyland's deductible for wind and hail damage was based on 5% of the total value of all buildings at Nyland, which was over $11 million dollars. This deductible was then divided among the 42 homes and collected as a individual assessment at an average of roughly $15,000 per home. Those homeowners who had adequate Loss Assessment insurance and/or Deductible insurance in their personal H06 policy were able to make a claim and have their individual assessment paid by their personal H06 insurance.
You can read these amendments to our CC&Rs made on May 16th, 2019 for more details.
Last updated on May 16, 2019