Maintaining comprehensive insurance is a vital element of condominium management. Even if a condominium has a professional property management company, the condo will be liable for most types of claims. Moreover, condo association insurance must equip condos to address major damage to the premises in order to protect the property of its membership and keep its operating budget in line.
Condominium buildings have broad and unique liability exposure. Being responsible for serving the interests of many different property owners within a building means that associations owe their membership a high duty of care. They are vulnerable to many different types of claims, so they need to have adequate liability insurance to address them.
Many different types of events could result in significant harm to a building. Some events could be so severe that it displaces residents. Property insurance can enable buildings to pay for repairs after damage.
Directors and Officers Liability
The individuals who serve on a condo board may face personal liability if there is a legal claim against the association. A directors and officers insurance policy protects board members against costly personal losses after a claim.
Condo association boards should review their current insurance costs and needs. Working with a provider that has extensive experience serving condos can help them make informed decisions about addressing deficiencies.