Over 350,000 home fires occur in the United States each year, according to data from the National Fire Protection Association (NFPA). Shelter and protection are the basic coverages when it comes to an insurance policy. For most people in the U.S., that means homeowners insurance.
But if you live in a condo community, you likely have a condo association insurance policy. Once you’re part of a condo association, you need to stay on top of condominium insurance to protect your investment. Without proper coverage, you could lose your stake in the property and be responsible for covering fines or damages.
But what does the condo association’s insurance cover? How is it different than a standard homeowners policy? Read on to learn all about condo association insurance.
Table of Contents
Property Coverage
This coverage includes common areas of the condo complex, fixtures, and other equipment. For example, if a problem were to arise with the roof, the policy would cover the costs of repairing the common area.
Property coverage may also cover personal property located within the common area. This includes furniture and appliances.
You may want to consider working with Yardi Breeze as they offer affordable rates, personal service, and a variety of options to choose from. A condo insurance policy offers security so that all parts of the building are covered in case of any unexpected events or damage.
Liability Coverage
Liability coverage protects the association from claims of property damage. Personal injuries caused by the negligence of the association board or its members are also covered. Coverage includes protection against wrongful eviction and libel or slander.
Accidental or intentional bodily harm is also included. Medical payments for injuries that occur while on the premises are also included.
Plans also include covering defense costs in the event a suit is brought against the association. This provides much-needed protection from the threat of increased litigation.
Loss Assessment Coverage
This coverage helps protect against losses that aren’t covered by a traditional insurance policy. These losses can include but aren’t limited to, assessments of damage to property owned in common, such as common areas in the building or community.
This type of coverage will pay for the part of the loss that is not covered by the owner’s policy. This ensures that the association is not responsible for the owner’s part of the cost of the damages. The reader needs to look carefully at the policy to see which losses are and which are not covered.
Special Event Liability Coverage
Special event liability coverage is an additional component of a condo association’s insurance policy. This can protect if an event is held by or on behalf of the condo association.
This coverage may also extend to damages to property that occur as a result of a special event taking place on the association’s premises. It is important to contact your insurance carrier about your specific coverage for special events.
It is also important to make sure all necessary protections are in place. Special event insurance is important as it will protect you from any potential risks.
Understanding Condo Association Insurance Policy
Condo Association insurance policy covers common property damage, loss assessment, and personal injury claims. This provides comprehensive protection to the association and its community members. To ensure your condo association and residents are covered, consult an insurance professional to ensure you have the right protection in place.
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