What Does Condo Association Insurance Cover?

A condominium is a great living arrangement for people who want to enjoy homeownership along with the shared benefits of a community setting. Individuals who own condos are part of an association, which is generally responsible for the grounds and common areas, while unit owners are accountable for the interior of their outside of a condo complex

units. A condo association has rules, governing documents, and a board of directors comprised of homeowners.

This balance of ownership, responsibility and liability is reflected in a condominium master insurance policy, sometimes known as a COA master policy. Because many areas within a condominium complex are shared, the association’s responsibility is to insure these spaces. Usually, the roof and exterior of the building and shared areas like elevators, recreational spaces, outdoor spaces, and hallways are the condominium association’s responsibility. And although condo associations purchase the condo master insurance policy, their unit owners share the cost in recurring fees.

A master insurance policy usually includes:

Liability protection—It’s crucial to protect against lawsuits and compensate unit owners or guests for damages and injuries they may suffer while in the condo building or complex. The liability protection in a condo association’s master policy generally covers legal or medical costs if the association faces a lawsuit.
Property damage—This insurance typically covers the common building structures shared with all other residents against covered perils such as fire, wind, hail, lightning, snow, vandalism and more. It may also cover condo association-owned property in a communal space, such as furniture or televisions.

Supplemental Coverage To Consider
In addition to liability and property protection, additional types of coverage may benefit a condo association. Examples include:

Commercial umbrella liability insurance—Liability insurance claims can exceed the limits of your standard policy. Commercial umbrella insurance can provide the additional funds needed to settle a claim.
Directors and officers (D&O) liability insurance—This insurance provides coverage if your condo association is sued for misappropriated funds or officer negligence.
Workers’ compensation insurance—If your association has employees who get hurt on the job, they may qualify for workers’ compensation, which provides medical benefits, income assistance and other financial aid while the employee recovers.

Numerous factors can affect your condo association’s policy needs. Take the necessary steps to protect your association with the proper coverage. We can help you get the insurance that’s right for your association.

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