Insurance Needs of Condo Associations

Condo associations are responsible for legislating and maintaining the homes of as many as hundreds of residents. Establishing risk management and loss control measures for the condominium community is among the most important of these duties. This can be a complicated process, as the nature of condominiums often splits insurance-related responsibilities between property management companies and individual unit owners. Fortunately, by working with qualified insurance professionals, such as those at Karla’s Insurance Inc., condo associations can understand and acquire ideal coverage.

How Does Condo Association Insurance Work?

Insurance for condo associations is often not available from carriers as a specific type of coverage. Rather than a prepackaged collection of coverages, many condo associations may need to compile their own insurance portfolios from several separate policies. By weaving several types of insurance together, associations can establish a financial safety net that may help them respond to various incidents and perils.

Acquiring and maintaining an adequate insurance portfolio should include consideration of common risks and exposures that may affect condominium communities, as well as a property’s unique circumstances. In many cases, condo associations insure the exterior of structures, as well as common areas, while individual homeowners are responsible for covering the interior of their homes and personal liability. However, the exact parameters of these arrangements may vary, and insurance packages should be adjusted accordingly.

What Types of Insurance Should Condo Associations Have?

The necessary components of a condo association’s insurance portfolio can vary significantly, but in many cases, the following policies may be advisable:

• Structural coverage can pay for buildings’ exterior walls, roofs and foundations, as well as all parts of any areas shared by the community, such as hallways, clubhouses and garages.
• Sewer backup coverage can provide coverage if plumbing issues cause water to back up into individual homes and damage residents’ belongings.
• Employee dishonesty coverage can pay for financial losses caused by fraudulent or criminal acts committed by condo association workers.
• Liability coverage can help pay for the losses of other parties, including residents and guests, if they suffer losses in an incident for which the condo association is at fault, such as by slipping on a wet floor in a common area.
• Commercial umbrella coverage may establish a critical secondary layer of financial protection if the coverage limits of other liability insurance policies are exhausted.

How to Get Insurance for a Condo Association Near Me

Having served hundreds of homeowners, businesses and families in the North Chesterfield, Virginia, area, the team at Karla’s Insurance has the knowledge and experience to help your condo association identify its coverage needs and assemble an optimal insurance portfolio. Visit our website or call 804-221-0782 to learn more or get a personalized condo association insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.