CONDO & HOMEOWNERS ASSOCIATION INSURANCE
Condo and Homeowners’ Associations are integral to the operations and governance of a variety of residential communities. While these groups operate differently from a traditional management group, the same protections for the property, its amenities, and its inhabitants apply with special consideration needed for board members and any paid staff.
Directors and Officers Liability
Associations work diligently to manage and protect your property. Oftentimes, traditional general liability does not include coverage for the board and its individual members (including any volunteers). A directors and officers policy will cover costs associated with legal defense and any resulting settlements that arise from some of the boards management decisions.
Workers’ Compensation
If your association employs maintenance personnel, purchasing a workers compensation policy is a necessity. These employees are the first line of defense when it comes to protecting your building and its grounds. They are also at the highest risk for on the job injuries. Oftentimes, a traditional general liability will not cover this type of claim. Workers’ compensation will cover expenses related to medical treatment, lost pay, disability, and in some cases: death benefits for the impacted employee.
Commercial Property Insurance for the Building
Commercial property insurance for condominiums is dictated by the form of building ownership. Listed below are the standard options available to condo associations.
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Broad Form Single Entity provides wide ranging coverage for the building and its contents with few exceptions. The personal property of a condo owner is typically the only exclusion. However, it is important that inhabitants make the condo board aware of any unit improvements or they will not be covered under this policy.
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Bare Walls has a more limited scope offering coverage of select areas of the condo building. This form typically excludes private property and unit improvements but offers coverage to common spaces and related elements.
General Liability Policy
If your associations’ property includes any number or type of amenities like a swimming pool, retention pond, lake, or clubhouse, you should consider adding general liability to your suite of coverages. These features invite attention and activity. In some cases, this is not always positive. When bad things happen, a general liability policy will handle the fall out from claims arising from bodily injury or property damage.
Umbrella Excess Liability
An umbrella policy acts as the name indicates. If you were to exceed the policy limits on any of your individual coverages, an umbrella policy will provide excess coverage.
Interested in learning more about protecting your association and its assets? Contact a CSP representative today.