CONDOMINIUM ASSOCIATIONS

Because of their unique legal structure, Condominium Associations require special insurance forms to cover both Property and Liability risks of loss. During your records review, the key to arranging both types of insurance properly is to carefully study the association by-laws and other organizational documents. For example, improvements, appliances and fixtures are covered as part of the association’s Building insurance, but only if the association agreement requires this.

The association’s directors and officers are exposed to being sued by others for their activities managing the association’s business – D&O coverage can (and should) be in place to protect the personal finances of these individuals. If the association is also an employer (maintenance, grounds care, etc.), then Employment Practices Liability should be arranged, on either a standalone basis or included in the D&O policy.

There should be clear communication between the association and its unit-owners regarding the respective responsibilities for arranging insurance – we can help you draft an explanatory memo for your unit-owners (and can also provide unit-owners’ insurance, on request).

Condominium Associations pose a unique Insurance risk.

For a Master Policy item list that every HOA
should review each year, click here