If you own a condo building or complex, you may face significant ownership and operational liabilities. Even if you are responsible for just a single unit, you may face a wide variety of risks that can result in hefty damages or loss of income if you’re not adequately protected. Ultimately, you may be responsible for your community’s well-being, as well as many of the present risks.
In addition to the general types of business insurance that may be necessary for you, securing the right condo association insurance can help provide a level of protection against many common risks and exposures. However, if you’re not familiar with this type of insurance, you might be wondering what it is. Read on to learn more.
Condo Association Insurance Basics
Condo associations need to purchase general property insurance to protect against damage to the condo structure itself, as well as any other communal property (e.g., roofs or clubhouses). They typically require general liability insurance as well.
• Property damage: Property damage coverage typically covers the physical structure of the condo building or complex against losses or damage related to fire, wind, hail, lightning, snow, vandalism and more. It may also cover your condo association-owned property in communal space, such as furniture or televisions.
• Liability: Liability coverage is crucial to protect yourself against lawsuits and compensate condo owners or guests for damages and injuries they may suffer while in the condo building or complex. Liability insurance may cover medical bills for a renter or visitor who is injured on the property as well as legal expenses in case a lawsuit is filed against the association.
While these two coverages are essential to have, they don’t necessarily provide all the protection you may need as a condo association. Consider all of the risks your association may face and work with an insurance expert at Geswein Insurance Agency to identify what other types of insurance you may need.
Additional Coverage Considerations
While every situation is unique, the following is a list of common insurance coverages that condo associations may purchase.
• Directors and officers (D&O) liability insurance: This helps cover the condo association if it is sued for misappropriated funds or officer negligence.
• Commercial umbrella liability insurance: General liability insurance claims might exceed the limits of your standard policy. However, commercial umbrella insurance can help provide the additional funds you need to settle the claim.
• Workers’ compensation insurance: Association employees could get hurt on the job or become disabled as a result of their work. When this happens, they may qualify for workers’ compensation, which can provide medical benefits, income assistance and other financial aid while they recover.
Get Covered Today
If you’re interested in learning how to adequately protect your condo association with the right insurance policy, give our agents at Geswein Insurance Agency a call today.