Condo Association Insurance

Condo associations come in all shapes and sizes, but one thing that they all have in common is that they require insurance coverage. Condominiums can be a great investment opportunity, but with that investment comes risks and liabilities. Condo association insurance is designed to protect both the association and its members from losses due to accidents, damage or other unexpected events.

Who Needs Condo Association Insurance?

All condo associations need insurance coverage to protect themselves against potential losses. The association is responsible for common areas such as hallways, lobbies, elevators, and other shared spaces. What’s more, it needs to take care of the exterior of the building, the roof, and any landscaping or amenities that are shared by members.

These and other factors put them at risk of financial losses and possible lawsuits if any accident or disaster happens. For this reason, they should have a dedicated insurance policy.

Types of Insurance Needed by Condo Associations

There are various types of insurance policies that condo associations should consider purchasing to ensure adequate coverage for their property, members, and guests.

Property Insurance – This type of insurance provides coverage for the physical structure of the building, including common areas, fixtures, and structural elements. It also covers any improvements made to the property.
Liability Insurance – Liability insurance provides coverage for any accidents or injuries that may occur on the property. This type of insurance also covers any legal expenses that may arise if someone sues the association.
Directors and Officers Insurance – Directors and officers insurance provides coverage for board members if they are sued for wrongful acts committed in their role as board members.
Fidelity Bond Insurance – This type of insurance provides coverage for theft or fraud committed by employees or board members.
Umbrella Insurance – Umbrella insurance is an additional layer of protection that provides excess liability coverage above the limits of your existing policies. This insurance can help protect the association from various significant financial losses.

How Much Does Condo Association Insurance Cost?

The cost of condo association insurance can vary widely depending on the size of the property, its location, and its value. A small association with a limited common area may require less coverage and, therefore, have lower insurance costs. On the other hand, a large association with a lot of amenities will require more extensive coverage, which will result in higher insurance costs.

To make sure all the important factors are taken into account, you need some professional help. The agents from EKinsurance will gather all the suitable offers for your association and tell you which one suits your needs and budget best.

Condo Association Risks and Exposures

Condo associations face a variety of risks and exposures that can lead to significant financial losses. Some of the most common risks include:

Damage to the property from natural disasters such as hurricanes, windstorms, and floods.
Injuries that occur on the property, such as slips and falls or accidents involving elevators or other equipment.
Financial loss due to theft or embezzlement by employees or board members.
Legal expenses resulting from a lawsuit.

Commercial Insurance And Business Industry Classification

SIC CODE: 8641 Civic, Social, and Fraternal Associations, 6531 Real Estate Agents and Managers
NAICS CODE: 813990 Other Similar Organizations (except Business, Professional, Labor, and Political Organizations)
Suggested Workers Compensation Code(s): 9012 Building or Property Management – Property Managers and Leasing Agents & Clerical, Salespersons, 9015 Building or Property Management – All Other Employees