In a condo, the condo association is responsible for the maintenance, operation and oversight of all common areas. If not properly taken care of and covered through insurance, they may run into trouble later on. With decades of experience working with condos, Muller Insurance reviews some of the risks and challenges that a condo association should plan for in regards to common areas.
Defining Your Common Elements
Every condo association has a different set of common elements. In general, everything that is not part of the individual condominium units is considered a common element. This includes garages, gazebos, recreational facilities, heating/cooling systems, etc. However, there is some gray area about what is and what is not covered. As you draft your bylaws, make sure everything that falls under your coverage is completely and clearly defined.
Otherwise, individual condo owners may be confused about who’s responsible for maintenance issues. Likewise, they might try to use any loopholes to their advantage. As long as you have clearly defined bylaws and the condo association insurance coverage to back them up, you should be set.
Maintaining Common Areas
There are two main risks associated with common areas: physical damage and personal liability. Yes, you’re responsible for making sure the pool is clean and well-kept, but you’re also responsible in case someone happens to slip and fall or otherwise gets hurt in a common area. That’s why you need to frequently review your insurance coverage with an agent to ensure everything is protected.
A big part of maintaining these areas is managing condo staff and hiring professionals who can maintain and repair your building correctly. It’s essential to avoid bringing untrustworthy or inexperienced people onboard, as this could lead to problems instead of solutions. In addition, as a condo association, it’s your responsibility to manage financial planning, allocate resources, collect fees and monitor and enforce the rules of the complex, so that everything can function smoothly even in the face of challenges.
Consult with Us about Condo Association Insurance
To learn more about condo association common area responsibilities and how to strategize for potential risks, contact the team at Muller Insurance. We’ll be happy to review your coverage options and provide a policy to protect you from both liability and property damage.