Condominium Association Insurance Overview
Condominium association insurance is specifically written to meet the needs of each individual condominium association. Depending on the layout and features of a complex, the association will have different needs.
There are many condominium complexes in Massachusetts, both on the North Shore and around Boston. Each of these complexes contains individual units and common areas. While condo owners are usually responsible for covering their individual units, condo associations are typically responsible for finding the proper insurance to cover communal areas such as: landscaping, fencing, indoor common areas, the structure of the building, walkways, exterior features, pools, fitness centers, and other amenities.
Condo Association Insurance Key Facts
- Most condominium association insurance policies provide liability and property coverage for the public areas that they insure. Liability coverage can help pay legal expenses and settlements associated with suits filed over covered accidents. This may include slips, falls, and similar accidents. Additionally, property coverage can help protect areas from damage caused by covered hazards, such as vandalism, fire, burglaries and other incidents.
- A bare “walls-in” policy normally covers the structure (walls, ceiling, floor, not including any decorative features such as paint) of a condo and, sometimes, the electrical and plumbing.
- “Single entity” policies can add coverage for standard features, such as carpeting, cabinets, and countertops.
- “Modified single entity” policies generally include all of the above coverage plus protection for upgraded features, such as granite countertops or hardwood floors.
Be sure to speak with one of our commercial lines experts at Phil Richard Insurance to make sure you have the right combination of coverage for your condo master policy. We provide products for unit owners as well. Email: email@example.com or call us at 978-774-4338 today.
Frequently Asked Questions
Who Pays the Condo Association Insurance?
Whoever owns the insurance policy. Condo association insurance policies are typically purchased by the association, so they submit premium payments. Most condo associations in Massachusetts however, pass this cost to condo owners. It’s common for associations to include a condo association’s yearly premiums.
Who pays the master policy deductible?
Condo association policies’ deductibles, are paid by the policy owner, which is usually the condo association, but can be passed onto condo owners. Because it’s impossible to know when a claim will be filed and the deductible must be paid, they aren’t typically included in annual assessments.
How are deductibles collected for the condo association?
The cost of a deductible is often passed onto condo owners through a special assessment, which can generally be assessed at any time of year. Because condo association policy costs are frequently passed onto unit owners, condo associations in Massachusetts should clearly communicate how much condo owners might be assessed.
Should the the condo association inform owners of their deductible ahead of time?
Owners want to know how the policy premiums will impact their annual assessment and how much a special assessment for a deductible might be. Communicating the details helps owners financially prepare for any assessments they might have to pay. Additionally, there are “loss assessment” endorsements available for the unit owners on their individual policies that they should have ahead of time.
The last piece of the puzzle?You need an agent you can rely on.
Everything you’re working for needs to be adequately protected, otherwise that second home or retirement may be out of the question. We find having an agent you trust is often an afterthought, but it should be the first one. It can make or break your business.
If you have any questions on your coverage, we will help you. We offer competitive products for many industries including Condo Associations, Non-Profits, Artisan Contractors, Restaurants, Auto Body Shops, Gas Stations, and more. Talk to us about your small business today.