HO-6 or Else! Can the Condo Association Require Proof of Insurance?

L.H. from New Jersey writes:

Dear Mister Condo,

I apologize, I do not live in Connecticut, but I am hoping you will have an answer. I own and live in a condo in New Jersey. We have a new company managing our property. We got a letter stating that we are required to show proof of an HO-6 policy by a certain date, and if it is not provided by then, daily fines will be assessed. I do have condo insurance, but wouldn’t it be my right to not carry it if I so chose since they are my assets that would be affected in the event of some sort of disaster?

Mister Condo replies:

L.H., greetings to you in the Garden State! The new management company may simply be performing due diligence by enforcing a provision that is already in your condo documents. It is not uncommon for condo associations to require compliance with insurance regulations. Perhaps your previous management company was not as diligent to do so. From what you are telling me, the letter that was sent sounded more like a warning than a request for compliance. That is simply a matter of style. I am glad to hear that you do carry personal insurance for the interior of your unit. I hope all of your neighbors do as well. Even if it were not required, it is just good sense. Many times I hear of condo owners who are surprised when there is damage to their unit that is not covered by the association’s master policy. Having to pay for new cabinets, carpets, flooring, etc. can be a rude wake up call to always keep an HO-6 policy in place to protect yourself and your condo. All the best!