What is Condo Association Insurance?
Condominium owners own their condos and, therefore, are usually responsible for insuring their units themselves. They don’t typically own the common places or shared portions of the building they live in, though. Insuring these areas of a condominium complex is usually the condo association’s responsibility. Condo association insurance policies help condo associations in Massachusetts get the insurance coverages they need for these parts of buildings.
Condo association insurance generally protects the parts of a condominium complex that are shared by condo owners. The list of what a policy might cover includes:
- Common spaces, like entryways, elevators, and hallways
- Shared walls between condos
- Exterior walls of condo buildings
- The landscaping around a condo complex
- Any fencing that surrounds a condo complex
In addition to entryways, elevators, and hallways, a policy may also cover shared amenities, such as pools, fitness centers, and business centers. Whether a policy covers these types of shared spaces will depend on its terms and conditions (as will all of its other coverages).
What Types of Condominium Association Insurance Policies Are Available?
Condominium association insurance policies can be separated into three categories: bare walls policies, single entity policies and modified single entity policies.
Bare walls policies provide the most basic level of coverage. They typically only cover the essential elements of a building, such as its roof, walls, floors, and elevators. Some policies also cover plumbing and electrical systems, but not all do. If an association in Massachusetts has this type of policy, condo owners are responsible for insuring everything in their units, including all appliances, fixtures, flooring, cabinets, and wall coverings. They also must insure their own belongings.