There are many people who enjoy the lifestyle of condo living. Having the luxury benefits of onsite amenities, maintenance, shopping convenience and much more are just a few of the reasons why people choose to live in condos.
And when it comes to owning a condominium or being a member of the association it is important to understand what condo association insurance is and how coverage could be based on your state’s laws.
What Is Condominium Association Insurance?
A Condominium Association Insurance policy covers damages to the shared area in your building and the exterior. This policy also covers the condo against liability costs if someone is injured on the premises.
However, the condo association policy may or may not extend to the inside of the individual units. The type of coverage that will be offered is based on the size of the condo, its location, and the type of condominium.
Common Types of Condo Association Insurance
There are several common types of condo association insurance coverage. Some may or may not include the following:
- General Liability
- Property Coverage
- Directors and Officers
- Workers Compensation
- Single Entity Coverage
- Bare Walls Policy
How Much Does Condo Insurance Cost?
The average cost of condo insurance is roughly around $430-$695 per year. Condominium association insurance cost is based on the unique factors of the property.
For condominiums that are located in states that are prone to natural disasters, the condo is at a higher risk for damage which could increase the cost.
Mistakes Condo Board Members Make When Buying Insurance
Finding the right condo insurance on behalf of your association is one of the most important decisions a board or owner has to make.
There are times when owners and board members will move their insurance policy from one company to another or add a new policy without double-checking to make sure they are fully insured. Below are some of the mistakes condominium owners and board members make when buying insurance:
- Failure to Record Decisions and Purchases
- Gaps in Coverage
- Not Having a Disaster Relief Plan
- Misunderstanding of Exclusions
- No Reserves Saved for Deductibles
Without sufficient insurance, the condominium could potentially incur serious losses. This makes it essential to speak with a certified insurance broker that can help you find the best coverage for your condo. Condo insurance agents make the process easy while offering professional guidance.