Condo Assocation Insurance
What Is It?
A condo association policy is purchased by the association of a condominium building or townhouse/villa. This provides coverage for the building itself along with common areas such as walls, elevators, hallways, stairways, sidewalks, parking areas, community pool and any other buildings or fixtures owned by the association. The cost of the policy is spread through the owners of the units in the building, typically called association dues. Usually this covers any additional expenses the community has. This type of policy does not cover the unit owner for liability or the inside of the unit or the owners or renters personal property. It is very important that the unit owners purchase their own coverage for the interior of the unit and personal property.
Why Is It Important?
Condo association building coverage is very important coverage to maintain. To not do so would be a gross negligence to the unit owners in the event of a fire, windstorm or other perils the policy covers for. Not doing so could result in legal issues with the owners of the units along with any other persons that could become injured on the property and file a lawsuit. It is also a requirement by most banks if the property is holding any type of mortgage or loan note. It can also be a requirement voted in by the association