Buyer’s Q&A
What insurance covers a fractional ownership property?
The home carries comprehensive property insurance covering structure, contents (excluding personal owner-closet items), liability, and weather damage. Premium is split pro-rata via the annual fee. Owners typically need their own contents insurance for personal items.
The short answer: The home is comprehensively insured, and the cost is shared eight ways. Each home carries property insurance covering: the structure of the home, contents (excluding personal items in owner closets), public liability for guests and visitors, weather damage (with riders for wildfire, flood, earthquake or hurricane where relevant), and machinery breakdown. The premium is split pro-rata across owners via the annual fee. Owners typically need their own contents insurance for personal items they leave in their owner's closet, and most travel insurance covers personal injury during stays.
What the home's insurance covers
| Coverage | What it covers |
|---|---|
| Building/structure | Rebuilding cost of the home in event of major damage; structural defects discovered during ownership |
| General contents | The company-provided furniture, fixtures, fittings, kitchen equipment |
| Public liability | Injury to guests, visitors, contractors on the property |
| Employer's liability | Where cleaning/management staff are employed directly for the home |
| Weather damage | Storm, wind, snow load damage |
| Wildfire rider | Specific coverage for wildfire-exposed properties (California, mountain markets) |
| Flood rider | Specific coverage for flood-exposed properties (coastal Florida, low-lying areas) |
| Earthquake rider | Specific coverage for seismic zones |
| Hurricane rider | Specific coverage for hurricane-exposed properties (Cabo, Caribbean) |
| Machinery breakdown | HVAC, appliances, pool systems |
| Loss of rental income | Where the company runs a rental programme — replaces income lost during repair periods |
What your own policies cover
Three things sit with you, as with any holiday. First, owner-personal-belongings — items stored in your owner's closet aren't covered by the home's contents policy; you typically need personal contents insurance for valuable items left at the property. Second, personal injury to owners themselves — your own travel or health insurance handles this, not the home's public liability. Third, as with any policy, damage caused deliberately or through gross negligence is excluded.
How the premium gets paid
The insurance premium is paid annually from the company-managed property bank account, funded by owners' annual fee contributions. Owners don't separately invoice for insurance; it's bundled into the annual fee. The premium is typically 10–25% of the total annual fee in standard markets, higher in weather-exposed markets (Aspen wildfire, Cabo hurricane, Lake Tahoe wildfire) — and because it's shared between the owners, each pays a fraction of what insuring a whole home would cost.
Weather-exposed markets
Insurance premiums in wildfire- and hurricane-exposed areas have risen in recent years. Co-owners have the advantage here: the company sources cover with professional buying power, and the premium is split between all the owners rather than carried alone.
Claims handling
The company's property manager handles insurance claims on behalf of the co-owners: documents the loss, files the claim, manages the loss adjuster's inspection, oversees repair work. Owners don't need to be involved in routine claims. For major losses, the company keeps owners formally updated throughout.
Your own personal insurance considerations
Three personal-side items to consider. First, your home-contents policy may have an "off-premises" provision covering items at the fractional property — verify with your insurer. Second, your personal travel insurance should cover the destination — particularly important for international fractional purchases. Three, some specialty insurers offer "vacation home owner" policies that supplement the home's coverage for personal items and personal-liability gaps.
Seeing the cover for a home
For any home you're considering, we can share the current policy (insurer, coverage limits, deductible, weather riders), its claims history and its premium history.
Where to find listings with documented insurance details
Co-Ownership Property's selection lists fractional inventory whose insurance positions are documented and available on request.
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