Insurance For
Condo Association 

Insurance Policies to Consider For Condo Association 

Understanding the Condo Association Insurance

Condo Association Insurance is designed and developed keeping in view the possibilities of all the unanticipated accidents that can occur in condos. Condos are categorized as commercial, residential properties, and the challenges that condo owners might have to face are different than what the owners of independent houses might have to suffer.   

Condo Association Insurance offers you and your condo the protection in the case of any incidents that happen around the building, including fire, vandalism, and any other property-related accidents. With Condo Association Insurance in place, you don’t really have to worry about having to pay for damages or losses that are a result of any accident that occurred on the premises of the building. You don’t even have to stress out over not having a place to live in the case your condo become inhabitable. In short, Condo Association Insurance offers you the protection, financial security, and peace of mind for a stress-free living. 

What Does Condo Association Insurance Cover?

Typically, the owner of the condominium building purchases a master insurance policy. The monthly fee of the master insurance policy is divided equally among the owners of all condo units. The coverage that this policy offers is different. If your condo owner has purchased basic Condo Association Insurance, you might have to buy Condo Insurance yourself to cover the losses of your personal belongings in the case of an unanticipated accident or event. 

The areas that a Condo Association Insurance covers depends on the type of insurance policy the condo association has purchased. There are 3 types of master insurance policies which have been discussed in detail below: 

Bare Walls Coverage

This type of Condo Association Insurance offers very limited coverage. In the case of accidents like fire, only the structural damages will be covered. The insurance will only pay for the damages to the structure and won’t cover the loss of your personal belongings. In some cases, this type of Condo Association Insurance also covers the furnishing and fixtures in the common areas of the condominium building.

This type of Condo Association Insurance will pay for the following:

• Restoration of the exterior of the condo building
• Restoration of the frame of the building
• Restoration and repair of the roofing, wiring, piping, wiring, insulation, and drywall of the building’s common areas.

However, you will be responsible for covering the following losses:

• Repair of the walls inside your condo
• Replacement of your condo’s floor
• Installation of your condo’s fixtures and other installations
• Replacement of all original appliances that your condo came fitted with

To save yourself from having to bear the cost of these repairs and replacements, it’s best to buy separate condo insurance that covers the cost of all of these areas. 

Single Entity Coverage

The Single Entity Coverage offers much wider coverage as compared to Bare Walls Coverage. Not only does this policy covers you in restoring the structural damages, but it also offers coverage for restoration of independent condo units, including the original fixtures. In case you had upgraded the fixtures in your condo, you’re not in luck here. 

All-In Coverage

It’s best if you buy a condo that has got this type of Condo Association Insurance in place. It’s the most costly among all other types of Condo Association Insurance. It provides coverage for the structural damages, restoration of individual condo units and also pays for all condo additions and improvements. So, in the case of a major incident in the building or your independent unit, you’ll have all your losses covered, both structural and personal. 

Additional Coverage

Apart from covering for structural damages, a Condo Association Insurance also covers the grounds around the building. It includes damages that any surrounding properties incurred because of an accident that occurred at your premises, such as walking trails, parks, parking lots, walkways, and sidewalks. 

What Perils Does Condo Association Insurance Covers?

One of the most important questions is – what perils does this insurance cover? In simpler words, what are the situations in which the insurance will cover losses and damages?

Condo Association Insurance will have you covered in the following scenarios:

• Fire
• Wind storms
• Vandalism
• Legal fees in the case of liability claims
• Medical coverage for the liability claims that the policy covers

What you must keep in mind when buying a condo is to go through the Condo Association Insurance that the property has. Remember that you’ll be covered only in the case of perils that are mentioned in the policy. For example, if the policy doesn’t mention vandalism, you can’t expect or demand coverage for your losses.

What Happens if the Cost of Damage Restoration Exceeds Policy Limits?

The cost of damage restoration may exceed the limits of the Condo Association Insurance. For example, the Condo Association Insurance offers coverage worth $1 million, but the cost of restoration may come up to $1.5 million. In this case, the additional cost will have to be paid by the owners of each condo unit. They’ll be held liable for everything that falls outside the realm of the Condo Association Insurance. 

If you think the Condo Association Insurance that your condominium provides is insufficient, you can always buy condo insurance to cover your personal losses – if need be. That’ll provide you with a greater sense of financial security and make your life in a condo less stressful!