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Insuring Condominium Associations

Written by Bill Garrity | Oct 17, 2023 2:25:00 PM

The largest problem with insuring condominium associations today is the many different condominium documents that exist out there from the original builder/developer and the attorney who wrote those documents. That creates the misconception on behalf of the Board Members who are attempting to do the right thing in securing the building(s) replacement cost coverage. The difference between the “all in to the inside wall surface” coverage versus the inside studs defining the unit owners coverage can be quite a difference in annual premium.  Therefore, when we place your condo association coverage with carriers like Norfolk & Dedham, MAPFRE, Andover Companies, Fire Ins., etc. we look for the capability to add the “all in” endorsement. This lowers the individual unit owner’s policy. Make sure that you revisit that individual policy to cover at least the amount of the association’s building deductible and consider adding any improvements and betterments that you have made to your own individual unit to the individual building coverage. This may be covering an improved bathroom, kitchen, or mural on a wall that makes your individual unit unique. The unit owner should request all risk building unit owner coverage for their own policy. This protects them in a potential claim that it denied by the association but may be considered under the individual unit owners policy.

Make sure for the units that are rented to others that you require those tenants secure apartment coverage to cover their belongings as well as their tenant liability coverage exposure. This would include pets, golfing, and other liability issues.