Many condominium associations do not realize the dangers of going without insurance. An association insurance policy brings great peace of mind to members and can help prevent needless financial losses. Learning about the benefits of this insurance coverage will help condo associations decide on their insurance coverage needs.
What Is a Condo Associate Insurance Policy?
Those living in a condo community have access to community areas that are shared by everyone in the community. Garrity Insurance wants condo owners to realize these areas may not have insurance coverage. The money paid to condo associations ensures everyone has access to amenities. These fees also cover condo association insurance, sometimes referred to as a master condo policy.
What Does a Condo Associate Insurance Policy Cover?
Before associations purchase an insurance policy, they need to know what is covered. Associations will find the following part of a master condo policy.
Liability Coverage
Should someone slip and fall in a common area of the condo community, whether it be a condo owner or invited guest, someone is going to have to pay the damages. A condo association insurance policy should include liability coverage. This coverage will pay for any damages or settlements resulting from lawsuits. Liability coverage prevents individual condo owners from being held accountable.
Building Damage Coverage
Individual condo owners are only responsible for damages done to their property. The condo association is responsible for protecting the rest of the building, including community areas. Many types of damage can result from storms, trees falling, and vandalism. Having building coverage gives peace of mind to all who live in a condo community.
Common Area Coverage
Common areas in condo communities include lobbies, walkways, elevators, hallways, tennis courts, swimming pools, and more. Most master condo policies include coverage for these common areas. Before settling on a policy, condo association members must ensure the insurance offers full coverage.
What Are the Benefits of Condo Association Insurance?
Condo communities are rising in popularity throughout the United States. Those part of condo associations must ensure they purchase proper insurance coverage. Going without insurance coverage can be risky and costly. Consider the following benefits.
- Condo association insurance policies protect against lawsuits that result from accidents in common areas. Insurance policies provide coverage for legal fees and awarded damages as a result of lawsuits.
- When damages occur to common areas, members of the community must pay equal amounts, which could result in thousands of dollars. With insurance coverage, the policy pays for the damages and repairs.
- These insurance policies cover the medical bills associated with injuries occurring in common areas. Insurance coverage ensures injured people get the medical care they need for injuries occurring in condo common areas.
- Condo association insurance also covers financial losses. If condos remain empty for an extended time, business losses result. Continuity loss coverage helps condo associations offset the costs of repair or replacement.
Get the Necessary Coverage for Full Protection
Condo association insurance brings great peace of mind to condo communities. If something goes wrong, condo associations will not have to worry about lawsuits and hefty settlements. The right master condo policy ensures common area accidents are covered.
Condo associations without insurance coverage may face serious risks and costs. Going without an insurance policy is not worth the potential risks. Now is the time to seek full coverage for your condo association.
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