If you’re part of a condo association, keeping up with the demands of the job can be challenging. Condo association insurance is chief among these. You and the other board members are responsible for choosing a policy that protects the community against extreme weather, fires, crime, and other threats – and you need to understand the ins and outs of this complex coverage to ensure you choose the best option. Here, Muller Insurance takes a closer look at what condo associations in New Jersey should know about insurance coverage.
What’s Covered Under Condo Association Insurance?
First, it’s important to understand exactly what’s covered under your condo insurance policy. This helps make a clear distinction between the responsibilities of unit owners and the structures and property the association is liable for. In general, condo association insurance covers:
- Common spaces: Garages, pools, gyms, courtyards, patios, etc.
- Shared infrastructure: Foundations, utilities, security systems, walls, hallways, elevators, staircases, etc.
- Cooperatively owned property: Any furnishings or other items provided inside units and owned by the association, such as furnishings, appliances, artwork, etc.
- Outdoor areas: Decks, balconies, tennis courts, fitness centers, pools, pavilions, etc.
The condo association should make sure condo owners understand the need to purchase their own insurance policies. Personal items, such as clothing, jewelry, furniture owned by the resident, and other items are not eligible for replacement under the association’s policy and should be covered by the condo owner’s insurance.
Coverage Should Be Reviewed Annually
It’s likely the property covered by your condo association policy will change over time. For example, you might make improvements to an indoor seating area, adding new furniture and a more attractive group gathering space. Alternatively, you might take down an aging gazebo that no longer meets the needs of the community.
In any of these cases, your condo association insurance policy should be updated to reflect the changes. The association should plan a call or meeting with an insurance agency annually to review any updates and adjust the policy as needed to ensure the best coverage possible at the most affordable price.
Get the Right Liability Coverage
Condo association insurance also covers liability. This includes any injuries to residents and guests as well as damage to their property. For example, should patio steps in poor repair collapse and result in a sprained ankle, the condo association’s liability insurance would pay for the injured party’s medical bills.
However, the policy’s liability coverage also protects you and your fellow association board members. There is a chance any or all of you could be sued and face court costs, attorney fees, and other expenses. By ensuring the association policy includes adequate liability coverage, you can avoid using personal finances to manage these costs.
Hire a Trusted Insurance Agent
If your condo association is like most, its members are largely residents with other careers and busy lives. That makes it even more important to find a trusted partner who can answer your questions about insurance coverage and provide a policy that is tailored to your organization’s needs.
With more than 100 years of experience and partnerships with over 20 leading insurance companies, Muller Insurance offers the comprehensive coverage your condo association needs to protect against loss and liability. Contact us to learn more or request a quote today to get started.