Condo Insurance

Purpose

This policy outlines the insurance requirements for both the [Condominium Association Name] (the “Association”) and individual unit owners (the “Owners”) to protect against potential financial losses and liabilities.

Association Insurance

The Association shall maintain, at its expense, the following insurance coverage:

  1. Property Insurance: This covers physical damage to the common elements of the condominium property, including the building(s), common areas, and any shared amenities. The policy should include replacement cost coverage, ensuring that the property can be rebuilt or repaired to its original condition after a covered loss.

  2. Liability Insurance: This protects the Association from financial responsibility for injuries or damages that occur on the common property or as a result of the Association’s actions. The policy should provide adequate limits of liability to cover potential claims.

  3. Directors and Officers Liability Insurance: This protects the Association’s board members from personal liability arising from their decisions and actions made in good faith on behalf of the Association.

  4. Fidelity Bond: This protects the Association from losses due to employee dishonesty or theft.

Owner Insurance

Each Owner shall maintain, at their expense, the following insurance coverage:

  1. Property Insurance: This covers the Owner’s individual unit and personal belongings against loss or damage. The policy should include coverage for improvements and betterments made to the unit.

  2. Liability Insurance: This protects the Owner from financial responsibility for injuries or damages that occur within their unit or as a result of their actions. The policy should provide adequate limits of liability to cover potential claims.

  3. Loss Assessment Coverage: This covers the Owner’s share of any special assessments levied by the Association to cover uninsured losses or liabilities.

Additional Provisions

  • All insurance policies required by this policy shall be obtained from reputable insurance companies and shall name the Association as an additional insured, where applicable.

  • Owners shall provide proof of insurance to the Association upon request.

  • The Association shall review its insurance policies annually to ensure adequate coverage.

Disclaimer:

This policy is intended as a general guideline and may not address all specific insurance needs. It is recommended that the Association and Owners consult with qualified insurance professionals to determine the appropriate coverage for their individual circumstances.