Comprehensive insurance for a condominium association generally requires more than one type of insurance policy. Associations should structure coverage packages that reflect their unique needs.

Property Insurance

Condo association insurance must include a policy for damage to the common areas of the property. Board members need to carefully review their condo’s property insurance and identify all relevant exclusions.

Directors and Officers Coverage

The individuals who serve on condo boards could face personal liability if someone brings a claim against an association. In effect, associations are corporations, so assuming the role of a director makes a person a principal of that business entity.

Board members may also be subject to suit for a violation of their duty to the association. Due to the risks involved in board service, a directors and officers policy is an important resource. Without the availability of this type of policy, it could be challenging for a condo’s membership to facilitate board governance.

General Liability

Many common lawsuits against condos fall within the scope of a general liability policy. Claims involving personal injuries on the premises or damage to a unit owner’s property from a leaky roof can fall under general liability coverages.

Insurance coverage is a vital protection for condos. Board members need to do some due diligence to ensure that their associations have sufficient coverage.