When individuals purchase a home, they assume responsibility for the structure itself and the items stored within. Condominiums require a different approach, as the condo association assumes responsibility for many aspects of the communal building, and residents take responsibility for their personal property. That means your condo association can’t afford to skip the insurance coverage needed to defend against loss in these circumstances. Learn more about the importance of condo association insurance and what Muller Insurance clients should understand about this coverage.
What Is the Condo Association Responsible For?
As noted above, condo association insurance covers common areas that are shared by all residents of a condominium. While some associations adopt responsibility for select components of individual units, such as walls, ceilings, floors, cabinets, fixtures, and more, in many cases, these elements are left to the unit owner to insure. However, when structures and features are used by everyone, the condo association is liable for their upkeep, repair, and replacement
These elements include bare walls and hallways, as well as the foundation of the building. Pipes, wires, heating and cooling systems, security systems, and similar components are also covered. This broad coverage is designed to protect many individual parties who will be affected equally by the loss of the property, as well as to safeguard the association. Other structures that must be covered by this policy include:
- Pools
- Basketball and tennis courts
- Fitness centers
- Garages or carports
- Gazebos
- Shared porches, decks, and patios
- Clubhouses
What Does Condo Association Insurance Protect Against?
When dealing with insurance, the cause of damage is just as important as the items or structures that are damaged. Luckily, condo association insurance provides extensive coverage against numerous factors, such as:
- Certain weather events, including acts of God like hail, tornados, and fires
- Vandalism
- Theft
If you purchase a separate policy or endorsement, you can also protect your condo against flooding and earthquakes. But while this comprehensive coverage will shield you against unexpected events, it is important to keep in mind that day-to-day maintenance and upkeep is expected from the association. If the damage is caused because of negligence, it isn’t likely to be covered.
What Is Not Covered by Condo Association Insurance?
Most condos require residents to have homeowner’s or renter’s insurance in addition to the insurance carried by the condo association. This is because there are some key elements that condo association insurance does not provide coverage for. Anything inside an individual unit will generally not be covered by this type of insurance unless it falls under the ownership of the condo association.
Items such as provided furnishings and fixtures may apply, but this liability varies. In these cases, any furnishings or fixtures replaced, upgraded, or remodeled by the unit owner become their responsibility versus that of the condo association. Similarly, personal belongings or unit structures will not be covered if stolen or damaged. Injuries that occur inside a personal unit will also not be covered by condo association insurance, requiring owners to maintain individual homeowner’s insurance.
Get Covered Today
Understanding the importance of condo association insurance helps ensure everyone’s financial best interests are protected. To learn more about the insurance requirements for your condo association, contact Muller Insurance to request a free quote. With more than 100 years of superior service and strong relationships with multiple insurance companies, we’re able to provide the best coverage at a price that’s right for your budget. For additional information, contact us online today.
