What is Condominium Association Insurance?
In residential, commercial and office condominium associations, directors and officers are usually responsible for securing insurance coverage in accordance with the association’s founding documents.
Insurance requirements are found in the Master Deed and/or By-Laws. Building coverage can range from no coverage at all to coverage for all of the building items regardless of ownership, which means it is important that each Board of Directors–as the board changes over the years–conducts a comprehensive study of insurance requirements, current coverage, and future needs.
What is Included in Condominium Association Insurance?
Common coverages for condominium association insurance programs usually include:
- A master policy to cover the building items spelled out in the founding documents
- Liability coverage for injury that might occur on the premises or at some other location where the association may conduct meetings
- Property coverage, outlined in a document called a special perils form
- The unit owner as an additional insured (protecting them only as a member of the association–they must still secure their own separate coverage)
- A fidelity or employee dishonesty bond to protect the association from the loss of funds in the event the custodian of the association’s money steals from the association.
- Flood insurance, particularly if the property lies in a National Flood Insurance Program flood zone
- Workers compensation insurance, if the association hires employees or wants to cover their incidental risk for contractors
- Non-owned auto insurance, if the association asks members to utilize their own cars for association-related tasks and dealings
- Directors and officers liability insurance, in case they do not uphold their obligations outlined in the founding documents
- An umbrella liability policy with higher limits for catastrophic liability losses
Insuring Jersey Shore Condo Associations Since 1974
Representing some of the most respected insurance providers in the world, Anderson Insurance Agency has been helping coastal New Jersey condominium associations secure the coverage they need for more than 40 years.
We closely review all founding documents in order to recommend an effective insurance program. Our officers are also licensed and experienced real estate brokers, enabling us to understand and address an association’s concerns from a property-focused perspective.
Let us develop and secure a customized insurance program that will protect your members and property for years to come. Contact us today.