Understanding Insurance for Condominium Associations and Homeowners Associations

Condominium complexes and neighborhoods with homeowners associations can cultivate tight-knit communities with abundant camaraderie. However, these living arrangements may require residents and managerial parties to address certain shared risks and exposures. Fortunately, a qualified insurance professional, such as those at Roman Empire Insurance Agency, Inc., can help these associations understand and maintain appropriate coverage.

Why Do Condo Associations and Homeowners Associations Need Insurance?

Managing condominiums or overseeing neighborhoods can involve inherent risks and exposures. Regardless of diligent maintenance or responsible residents, accidents and unexpected incidents may occur, potentially leading to significant financial losses. Individual condo residents and homeowners often only carry coverage for their own property and liabilities, necessitating alternative coverage for common areas and shared assets.

What Is Covered?

A condo association or homeowners association insurance policy may generally offer multifaceted financial protection, such as the following coverages:

• Structural coverage can help pay for repairs, restoration costs or rebuilding if the exterior of a condominium complex or shared areas in a neighborhood are damaged. Covered perils typically include fires, some types of water damage, burglaries and vandalism.

• Liability protection may render financial aid if a condo management company or homeowners association is allegedly at fault for an incident from which residents or guests suffer losses. For example, if walkways are poorly maintained and someone falls and injures themselves, coverage may help offset financial repercussions.

• Employee dishonesty coverage may compensate affected parties if staff members of a condominium or homeowners association are found to have committed certain dishonest or fraudulent acts from which residents or other parties accrue financial losses.

Other Coverage Options

In addition to a condominium association or homeowners association insurance policy, such parties should also understand they may need additional types of coverage. For example, workers’ compensation insurance is likely required if an association has employees, such as maintenance or security staff. Additionally, commercial auto insurance is likely needed if an association uses motor vehicles, such as maintenance vehicles or snowplows.

We’re Here to Help

At Roman Empire Insurance Agency Inc., we understand the complexities and nuances of insurance for condominium and homeowners associations. Contact us today to learn more about coverage options or to get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.