Condos or townhomes are unique homes, offering many benefits for non-traditional homeowners. However, unlike traditional houses, condo owners are only accountable for the interior of their units. The condo or townhome association is typically responsible for the roof and exterior of the buildings, grounds and common areas like elevators, recreational spaces, outdoor spaces, and hallways, which they protect through a master insurance policy. And even though the association purchases the master insurance policy, they usually share the cost with condo owners through recurring fees.
What Protection Does a Master Insurance Policy Provide?
Typically, a master policy will include:
- Liability protection is used against lawsuits and compensation for damages and injuries occurring in the condo building or complex. The liability protection in a condo association’s master policy usually covers legal or medical costs if the association faces a lawsuit.
- Property damage coverage typically covers the common building structures shared with residents against covered perils such as fire, wind, hail, lightning, snow, vandalism and more. This coverage may also protect condo association-owned property in a communal space, such as furniture or televisions.
Is Additional Insurance Beneficial?
In addition to liability and property protection, there are additional coverages that can provide beneficial coverage for the condo or townhome association, including:
- Commercial umbrella liability insurance can provide additional funds in the event a liability insurance claim exceeds the limits of your standard policy.
- Directors and officers (D&O) liability insurance provides coverage if the condo association is sued for misappropriated funds or officer negligence.
- Workers’ compensation insurance provides medical benefits, income assistance and other financial aid if an employee of the association employee is hurt on the job.
Protect Your Property
Various factors might affect your association’s insurance needs and the cost of your master policy. If you’re responsible for a condominium or townhome association near Denver, Colorado, JJ Insurance can help you explore the proper coverage for your property.