Condominium associations carry a legal obligation to maintain adequate insurance on the building and its common areas. The association’s master insurance policy is the foundation of that obligation, and structuring it correctly has direct consequences for every unit owner in the building. Muller Insurance writes condo association master policies for buildings in New Jersey, New York, Connecticut, and Pennsylvania, with the majority of our association clients located in Hudson County and the broader New Jersey market.
We have been writing condo association insurance in New Jersey since 1906 and hold commercial carrier relationships with several companies that write association business in multiple states.
Core Components of a Condo Association Master Policy
Commercial Building Coverage
The master policy covers the building structure at its replacement cost, including exterior walls, roof, foundation, common hallways, lobbies, stairwells, elevators, and shared mechanical systems. Replacement cost should reflect current construction costs, which in Hudson County and the broader NJ/NY market have increased substantially in recent years. Policies that have not been reviewed for replacement cost accuracy may be carrying inadequate limits.
General Liability Insurance
Covers bodily injury and property damage claims arising from incidents in common areas of the building, including lobbies, hallways, parking areas, courtyards, and other shared spaces. The association is the named insured, and coverage responds to claims against the association by residents, guests, delivery personnel, and other third parties.
Directors and Officers Liability (D&O)
Condo association board members make governance decisions on behalf of all unit owners. D&O liability covers claims against individual board members alleging mismanagement, improper decisions, failure to maintain the property, or breach of fiduciary duty. Without D&O coverage, board members may face personal financial exposure from these claims. This is a standard coverage component for most well-structured association policies.
Fidelity Bond and Crime Coverage
Associations collect monthly assessments and maintain reserve funds. Fidelity coverage protects the association against theft or misappropriation of funds by board members, management companies, or employees. This coverage is particularly relevant for associations with active reserve accounts or those managed by third-party management firms.
Equipment Breakdown Coverage
Covers mechanical and electrical failure of building systems, including HVAC, elevators, boilers, and other equipment. Standard commercial property policies exclude equipment breakdown, so this coverage must be added separately or included through an endorsement.
Umbrella Liability Coverage
An umbrella policy provides additional liability limits above the association’s primary general liability policy. For associations in densely populated buildings with high foot traffic, umbrella coverage is worth considering.
All-In vs. Bare Walls Coverage Structure
Association boards must decide how the master policy is structured relative to individual unit coverage. A bare walls-in policy covers the building structure and common areas only, with unit owners responsible for everything inside their units including fixtures and finishes. An all-in policy extends coverage to original fixtures and finishes within units. The chosen structure should be disclosed to all unit owners so they can purchase individual policies with appropriate coverage for the gaps.
Flood Coverage for Condo Associations
Standard commercial property policies do not cover flood damage. For condo associations in or near flood zones, particularly those in Hudson County near the Hudson River, a separate commercial flood policy is required. Muller Insurance can place flood coverage for association buildings through our flood carrier relationships.
Our Carriers for Condo Association Insurance
- Andover Companies: writes condo association commercial policies in NJ, NY, and CT.
- Franklin Mutual (FMI): writes condo association policies in NJ, NY, and PA.
- N&D Group (Norfolk and Dedham / Fitchburg Mutual): writes condo association policies in NJ.
- Amtrust: writes commercial property and liability for condo associations in NJ and NY.
- Cumberland Mutual: writes commercial property and liability for associations in NJ.
Coverage in New York, Connecticut, and Pennsylvania
Muller Insurance also places condo association coverage in New York, Connecticut, and Pennsylvania. Andover Companies writes in NJ, NY, and CT, making it a carrier we use for associations with buildings in more than one of those states. Amtrust writes commercial building coverage in both NJ and NY. For PA association properties, Franklin Mutual writes in NJ, NY, and PA.
Contact Muller Insurance
For a condo association insurance quote in NJ, NY, CT, or PA, call Muller Insurance at 201-659-2403 or visit MullerInsurance.com. We write association coverage for buildings of all sizes across the region.
