When condominium insurance discussions arise, individual policies often come to mind. However, the condominium association must also maintain liability, property, and other insurance to protect the residents in common areas. Consider this overview of condo insurance policies to find the right one to provide optimal coverage and protection for everyone.
What is Condominium Association Insurance?
Getting insurance for condominium associations differs from securing individualized policies for each condo owner. While the individual condo owners are collectively responsible for this insurance, the association usually collects monthly dues for this purpose and others. Condo association insurance is specialized coverage meant to insure common areas of the property used by all residents.
What Areas Does Condominium Association Insurance Cover?
Residents get individualized policies to protect their investment in individual units within the condo complex. In addition, these residents gain access to common areas like walkways, fences, hallways, elevators, stairs, entrances, and walls used by everyone, requiring condominium association insurance coverage. Other areas covered by this specific insurance may include swimming pools, community centers, exercise rooms, and other common amenities used by all condo residents.
Terms and Conditions Vary
The terms and conditions of each condo insurance policy vary based on the community’s needs. For example, a condo complex with several swimming pools may require more coverage than one without these facilities. The condo association board members must carefully review the terms and conditions of the policy to ensure comprehensive coverage, including limits and exclusions.
Property and Liability Protection
Condo master insurance policies typically provide property and liability protection to protect the condo association from claims and liability suits filed against them. Maintaining this insurance helps pay for costs such as legal fees and settlement associated with covered claims against the association. Working with a team of insurance professionals ensures the condo association secures essential coverage to reduce costs and protect them if a claim arises.
Understanding the Differences
Another crucial factor in reviewing before investing in a master condo insurance policy is how the interior units are covered. In most instances, the unit owners buy insurance to protect the interior walls, while the master policy covers exterior walls and structural elements. However, these terms are clearly outlined in the policy and should be carefully reviewed to get the right coverage to protect everyone.
Working Together for Optimum Coverage
It is important for condo association board members and unit owners to work together to ensure comprehensive coverage for any situation that may arise. Anything less could mean covering costs and claims that add up significantly. Also, unit owners must maintain their individual policies to get coverage for interior household claims.
Is Master Condo Insurance Mandatory?
While master condo insurance policies might not be legally mandatory, unit owners should inquire about these policies to verify proper coverage regardless of the circumstances. Also, many owners prefer this coverage, so they reside in well-maintained communities with the resources to defend claims and make necessary repairs.
Condominium association insurance differs from the coverage held by individual unit owners and covers the shared areas of the residence property. As a result, residents have peace of mind knowing that common areas are covered when they pay their association dues. Plus, this coverage keeps property amenities well-maintained to ensure the integrity of condo communities for years to come.