Legal Question in Insurance Law in New Hampshire
Difference between liability coverage under condominium policy (specioal form3)
Our elder condominium has a condominium/association policy (special form3), which includes liability coverage,with one million limit. We also have a commercial liability umbrella policy with 3 million limit. If we raise the condo policy limit to 3 million with an increased premium and cut off the umbrella, we save about $600 net. I can't find any downside to this.What difference would this make in our coverage? We have no vehicles and all our property is at one location.
1 Answer from Attorneys
Re: Difference between liability coverage under condominium policy (specioal fo
The difference is that you lose 1Mil in coverage for a savings of $50/month.
Right now you have 1Mil primary, and 3Mil backup, for a total of 4Mil. Under the facts you describe you will have 3Mil primary, no backup, and $600 more dollars next year.
The relevant question is whether or not you require 3Mil or 4Mil CPL [comprehensive public liability], and the answer depends upon your guess as to whether or not someone can be injured to the extent of 4Mil in the common areas of the premises.
Were it me, I would keep the coverage as is. As a side benefit, if your primary and reinsurance are with 2 different insurance companies, if you get sued you get 2 sets of defense lawyers provided by the companies, a definite plus.
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