What Does a Condo Association Insurance Policy Cover?
If you own a condo or are part of a condo association, understanding what a condo association insurance policy covers is crucial. These policies protect the shared parts of the building and common areas, but they don’t necessarily cover everything. Knowing the coverage details can help condo owners and associations avoid unexpected costs and disputes.
What Is a Condo Association Insurance Policy?
A condo association insurance policy, often called a master policy, is designed to cover the building’s structure and shared areas. It is typically funded through the association’s collected dues and assessments.
What Does It Typically Cover?
A standard condo association insurance policy usually includes:
Building Structure: Covers damage to the exterior of the building, including the roof, walls, and foundation.
Common Areas: Includes hallways, elevators, lobbies, pools, fitness centers, and other shared spaces.
Liability Coverage: Protects against legal claims if someone is injured in a common area.
Property Damage: Covers damages due to fires, storms, vandalism, or certain natural disasters.
Directors and Officers Liability: Protects the board members of the condo association from lawsuits related to their decisions.
What’s Not Typically Covered?
While condo association policies provide broad coverage, they usually exclude:
Individual Condo Units' Interior: Owners must have their own insurance (HO-6 policy) to cover personal belongings, fixtures, and interior damage.
Flood or Earthquake Damage: These require separate policies.
Negligence or Poor Maintenance Issues: If damage results from lack of upkeep, it may not be covered.
Why Understanding Coverage Matters
Not knowing what a condo association policy covers can lead to financial risks for unit owners and the association. Condo owners should review their policies to ensure they have adequate coverage and avoid disputes when filing claims.
Real-World Example
A Florida condo building suffered severe storm damage. While the association’s policy covered the roof and exterior walls, unit owners were responsible for interior repairs, including water-damaged floors and drywall. Those without proper HO-6 policies faced significant out-of-pocket expenses.
How a Public Adjuster Can Help
Filing a condo association insurance claim can be complex. Public adjusters specialize in maximizing claim payouts and ensuring fair settlements. If your condo association is dealing with damage, hiring a public adjuster can streamline the claims process and help recover more funds for repairs.
Conclusion
A condo association insurance policy offers essential coverage for shared spaces and structural elements, but unit owners must ensure they have their own protection for interior damages. Understanding these policies can prevent costly surprises and disputes. If your condo association needs help with a claim, contact Shoreline Public Adjusters today for expert guidance!
Shoreline Public Adjusters, LLC
780 Fifth Avenue South
Suite #200
Naples, FL 34102Email: hello@teamshoreline.com
Phone: 954-546-1899
Fax: 239-778-9889
