Navigating condo association insurance policies can be tricky. There are some things the Homeowner’s Association (HOA) is responsible for, but also obligations the unit owners have to cover themselves. So how does each party know what to insure? If you’re preparing to take on management of a condo association, Muller Insurance can help clarify your responsibilities, so you can protect yourself, your assets and your association’s unit owners.

Condo associations are expected to insure all common areas and exterior components against loss and injury. This means they’re responsible for general upkeep and repairs as well as any liability issues. Overall, the condo association’s insurance policy is expected to encompass the following:

• Common areas, such as the lobby, fitness center, pool, park, walking trails, gazebos, hallways, elevators, etc.
• Damage from weather and natural disasters (floods, hail, earthquakes, fires, tornados, hurricanes, etc.)
• Damage from water and sewer backup
• Utilities, including HVAC systems, trash removal, pipes and conduits
• Building foundations, basements and roofs
• Other structures both inside and outside, like fences and landscaping

In general, condo associations are responsible for everything but the interior of the individual units. Some can choose to cover interior structures as well, but they are not expected to. For example, some HOAs may take responsibility for original furnishings, like an original bathtub, but relinquish that responsibility if the homeowner decides to replace the tub with a new one.

Similarly, condo associations are not liable for anyone’s personal belongings or interior unit structures, even if the loss occurs as the result of a natural disaster. Condo associations are also not responsible if someone gets injured inside of an individual unit. This means that if a property owner entertains guests and a visitor is injured in a slip and fall accident inside the unit, the individual is liable. Because of this, it’s important to encourage all residents to acquire proper homeowner’s insurance for such situations.

If you’re part of a HOA, it’s important to make sure sufficient coverage is in place. Otherwise, you might find yourself without recourse when damage occurs. At Muller Insurance, our policies offer extensive coverage for all the basics and for things not typically covered by other insurance companies, such as sewer backup. Contact Muller Insurance to request a quote or speak with our expert brokers to learn more about your responsibilities.