Our community bylaws and rules require each unit to be covered by an HO-3 or HO-5 policy for full replacement value.  Often consumers are only insured for the actual cash value.  Actual cash value is the value of the home considering its age and depreciation.  Actual cash value payout may not be enough to totally rebuild your unit.  Being insured for only the actual cash value would be a violation of Laurel Mews bylaws.

We have information that a few owners have had difficulty refinancing, perhaps because they had the wrong form of insurance, i.e., an HO-6 instead of HO-3.  HO-6 policies are for condominiums where the individual owners do not own the exterior and roof of their respective units or the entire building.  Although Laurel Mews is organized under the Virginia Condominium Act, and used to refer to itself as the Laurel Mews Condominium Association, unit ownership is ‘fee simple’.  Each owner owns their exterior walls, roof, and all the way down to the lowest plane of the foundation slab.  An HO-6 policy would not be appropriate for a Laurel Mews owner.  In fact it would be wholly inadequate, leaving major parts of the unit uncovered.  So again please make sure you have an HO-3 (or HO-5) policy.

Although HO-3 will be stated to include open perils protection, actually many if not most policies exclude certain types of damage, including damage caused by law (problems caused by a lack of proper permits), earth movement (earthquakes), water damage (floods), power failure, neglect, war, nuclear accidents, and intentional loss.  For these you will need specific endorsements, or additional polices, e.g., National Flood Insurance Program.  

Laurel Mews owners should have the ‘Laurel Mews, A Townhouse Condominium’ listed as an ‘Additional Insured’ entity.  This will not add any extra cost to your policy.  But it will help protect the HOA in case of a loss involving your unit.