In a condominium association, members own individual units plus an equal portion of the building and common areas. Due to this joint ownership arrangement, it is necessary for residents to form associations to establish bylaws and to oversee management of the complex. With this responsibility comes an increased risk of liability, which is why it is so important to carry a comprehensive condo association insurance policy.
What Is Covered
A typical condo policy includes property coverage for all common areas of a building or complex. General liability coverage is usually included in such a policy, protecting the association from claims for injuries or other incidents that occur on common areas.
What Is Not Covered
Many condo associations are governed by unpaid volunteers who are tasked with making decisions that are not always popular. It is not unusual for a disgruntled resident to bring a legal action against the board or an individual member. Typically, a condo association insurance policy does not include coverage for unpaid employees, but the organization almost always will be held legally responsible for any individual acting on its behalf.
Protect Your Association
Directors and officers (D&O) liability insurance is an important addition to any condo policy. D&O provides total coverage for volunteers, board members, trustees and committee members. Don’t risk the financial security of your organization, insist on a comprehensive condo association insurance policy.