Condominiums often have unique insurance needs, including policies that are the occupant’s responsibility and those that must be obtained by the condo association. Muller Insurance is an independent insurance agency that offers coverage to condo associations throughout New Jersey, New York, Connecticut, Pennsylvania, and more states. Here, we explore condo association insurance options and what HOA boards should know about the coverage.
What Is Condo Association Insurance?
Condominium associations have specific insurance requirements, including policies for individual owners and homeowner associations (HOAs). The homeowners association typically covers common areas and outdoor maintenance, including painting the outside of units, gutter repair, and landscaping. If the association doesn’t have an insurance policy, it can often lead to uncovered liabilities and financial losses because of damage or stolen goods in common areas.
Condo association insurance often provides protection for liabilities, losses, and property damage, depending on the plan’s scope and requirements. It generally includes the association’s master insurance policy, which may offer all-inclusive coverage, walls-in, and single-entity insurance. Keeping in mind your individual needs regarding budget and different plans is essential for buying condo insurance.
What Does Condo Association Insurance Cover?
Comprehensive insurance coverage is often complex for associations and owners, including shareholders and residents. Coverage responsibilities may vary depending on the condominium’s policy, including all-inclusive policies for common and recreational areas. However, it often includes:
Common Spaces
Common and recreational areas are often covered by HOA policies, depending on their coverage. These include:
- Garages and carports, as well as outdoor areas
- Recreational areas, such as pools, tennis courts, and courtyards
- Porches, patios, balconies, and decks
Shared Infrastructure
Certain plans offered by condominium associations are often shared throughout the entire building. Coverage often includes the foundations, utilities, and security systems. Most standard plans offer protection from vandalism, theft, and burst pipes. However, additional plans are often needed to cover damage from a flood, earthquake, and sewer backup.
What’s Not Covered?
Condominium association insurance typically doesn’t cover the inside of the individual condo unit. Tenants are required to insure their units, furniture, and appliances with personal condo insurance. They may also pursue additional condo policies to get more enhanced coverage of damage due to floods, earthquakes, and sewer backups.
Condo associations are also not responsible if someone gets injured inside an individual condo unit. Therefore, it’s important to encourage tenants to get the proper condo insurance coverage to ensure they’ll be protected in the case of an injury or accident inside their condo.
Why Condo Associations Need Specific Insurance
Condo associations need specific insurance coverage policies to avoid liability with co-op shareholders and residents. Condo complexes often include features that increase tenant risk, such as slippery pool and hot tub areas, fitness centers, sports courts, and balconies. Liability and legal issues can arise if an injury or damage occurs, and the HOA doesn’t have proper coverage. However, if an accident happens in an insured area, condo associations can have peace of mind that they met their responsibilities and their legal fees will be covered.
Several options exist for condo association’s master policies and owners, including personal property coverage, building protections, personal liability, guest medical coverage, and loss assessments. Separate purchase plans will protect condos against flooding and earthquakes, but they are not usually included in standard plans.
The extent of condo association coverage depends on the policy, ranging from bare walls, single entity, or all-in approach. Associations should review their documentation to avoid gaps in coverage.
Why Choose Muller Insurance for Your Condo Association Insurance?
Muller Insurance is an independent insurance agent with more than 118 years of experience helping homeowners and businesses find the right insurance coverage for their needs. We’ve worked with condo associations in New York, Connecticut, Pennsylvania, and beyond. As an independent agency, we’re able to partner with over 20 different insurance companies to offer various policies and coverage options. They include the following that offer condo association insurance:
- Farmers of Salem
- Cumberland Mutual
- Franklin Mutual Insurance
- The Andover Companies
- N&D Group Insurance
- Amtrust
Our comprehensive coverage can be purchased as part of a commercial package policy, a business owner policy, and workers’ compensation. Muller Insurance also offers directors’ and officers’ liability insurance, in addition to on-call customer service. To learn more about the insurance requirements for your condo association, contact us or request a quote today.
