Condo associations have to make a lot of important choices on behalf of all of a building’s unit owners. The board members decide how to manage the property, what dues to charge, and how to spend the association’s funds. Protecting the property with insurance is one of their biggest responsibilities. Board members need to carefully evaluate coverage options and policies that will fully safeguard the association.

Coverage Options

Typically, condo associations are responsible for maintaining and insuring a building’s common elements, and unit owners are responsible for insuring their own units and the contents. However, some condo insurance programs offer coverage that will apply to individual units. Insuring the contents and personal property would be up to the unit owners.

Liability Coverage

In addition to insuring the physical premises, condo associations need coverage to address liability concerns. A general liability policy can help to pay for legal costs and damages if a unit owner or a third party makes a legal claim against the association. A directors and officers liability policy can protect the board members who could be personally liable in their capacity as directors.

Ultimately, associations should work with insurance companies that are experienced in serving condos and HOAs. They can help associations build coverage packages that meet their unique needs.

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