Condo owners, while wise to take care of their own condo insurance, do have it in their right to look into the condo association insurance coverage the condo association they belong to carries. When association residents have questions about condo association insurance, the association should be informative about their coverage, including how it affects them as a resident.
From crime insurance to coverage for directors and officers, there are multiple ways in which condo association insurance can protect a condo association from claims and provide peace of mind to residents wanting to make sure the community they’re living in is a transparent one.
Here are some common questions that condo residents may pose.
Question #1: What kind of condo master policy is in place?
Associations should be carrying a studs-out coverage, which basically includes everything outside a resident’s unit. The condo association should take care of incidents pointed at the building like hail damage or roofing or inactive elevators. This means that residents must take care of issues on the inside of their unit, like walls, fixtures, and flooring.
There are some condo associations that do offer up all-in insurance, which protects the basic building and common areas as well as the structural elements and fixtures inside units.
Question #2: How do condo association insurance policies cover liability?
Condo master policies will help cover injuries of guests who incur injuries in common areas such as pools, clubhouses, and basketball courts. But residents will also want to know about injuries sustained inside their units. Most condo owners need some form of personal liability coverage, but will also want to check to see if the association policy will help outline how much they need.
Question #3: What are association insurance limits?
A condo master policy will usually cover property damage to the building as well as common areas, but only to certain thresholds. Depending on what the limits may be, there’s always the possibility that major accidents could exceed these limits. In this case, it might go to the condo owners to make up the leftover difference and repair the damage in some capacity.
Question #4: Do associations regulate condo insurance?
A condo association’s plan might outline how much of a certain type of condo association insurance condo owners should carry or from where they buy their policy from. It’s important for condo owners to know these factors before they pursue insurance because they may make their entire buying decision as to where they live based on this coordination between association and insurance provider.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (877) 807-8708 to speak with one of our representatives.