Condo association insurance offers a broad range of coverages. It typically covers the common areas – the structure of the building and the land where the condo is situated. Every condo association’s insurance term and by-laws are different. Therefore, one has to carefully analyze and determine where the responsibility of the individual condo unit ends, and that of the condo association begins.
What Does Condo Insurance Cover?
The condo association insurance covers all the shared amenities and public areas, like parking lots, lifts, lobbies, etc., within a residential complex or building. It protects the property and its residents against liability claims and property damages due to unforeseen causes.
What Are the Liability Concerns of Condo Associations?
According to a recent report, approximately 24% of the US population live in condos or apartments. So, it is crucial for responsible parties to understand the common liabilities that they might face. Here are the top five concerns of condo association insurance that you should be aware of.
1. Property Damage
Although the responsibility of the condo association extends to the common area, they are not liable for the personal belongings of any visitor or resident. For example, if a visitor or resident drops their phone in the common area, they cannot claim condo association insurance to cover for it.
However, the condo association may have liability concerns if the damage is caused “by the condo,” such as loose screw fittings, damaged tiles, or poor lighting. To avoid unnecessary lawsuits and liability risks, condo associations must recognize potential concerns and clarify the same to individual condo owners.
2. Third-party Lawsuits
Third-party lawsuits may occur in a variety of situations. Depending upon who has filed it, whether it is an employee or individual condo owner, or others, the condo association must identify the underlying cause of such instances to determine the responsibility and liability risks of the association.
3. Security Risks
Not just the instances of a claim or lawsuit, analysis of potential security risks is a continuous process, something that the condo association must be constantly aware of. This is crucial to save condo associations from unforeseen liability risks and ensure the safety of individual condo owners and residents.
After all, a failure to identify and control security risks may lead to physical or financial loss. This reflects upon the need for condo association insurance coverage for invariable protection.
4. Accidents
Accidents are common occurrences in condos. When residents or visitors are injured in the common areas, it may or may not fall into the liability concern of the condo association. It depends on the severity of the accident and what caused it. Condo associations can reduce the liability risk by following proper protocols for regular maintenance.
5. Maintenance
The upkeep of the property and maintenance of the common areas directly fall under the liability concern of the condo association. It includes everything from damage repair in common areas to updated alert/alarm systems and optimum lighting in all areas. These needs may vary based on the structure of the building.
How Can We help?
With our custom-tailored insurance solutions, we at Gonzalez insurance offer simplified policy management of condo buildings. Unlike other firms, we issue free individual insurance certificates to unit owners, which will outright reduce complications that might occur with multiple condo units.
Our online website login system is an add-on advantage that allows condo associations to manage individual unit insurance by themselves, saving both time and resources required otherwise.
Looking for a hassle-free condo management insurance policy without costly litigations? Check out our services.
If you are represent a condo association and want to know how insurance can work optimally for you, get in touch with our expert team today.