Condominium owners’ associations need insurance. Their unique needs make their insurance needs just as unique. Each unit owner owns a portion of the building and there are common areas that are shared between all owners. Here is what you need to know about condo association programs.
Purpose of Condo Insurance
Most condo units have an owners’ association that makes decisions for the buildings, makes repairs and manages expenses. The owners’ association establishes rules and governs the complex. Due to the role of the condo association, associations need to have condo association insurance. This covers the unit owners’ shared risks.
Condo Association Insurance Options
A comprehensive package might include some of the following coverage:
Directors and officers liability
Crime and fidelity coverage
Sewer backup coverage
Workers’ compensation insurance
When it comes to insurance options, general liability is the most crucial. This broad coverage covers different types of accidents that may occur in the complex. If a visitor is injured on the property or if a guest or unit owner suffers a burglary, this is what protects your association.
No condo association can go without insurance. It’s up to your association to decide which condo association programs are necessary for you. With all of the information, you can figure out the best programs for you.