Shopping for a New Condominium Association Insurance Policy

Shopping for a New Condominium Association Insurance Policy

Between 15 to 20 years ago in the city of Boston, individuals had the ability to purchase separate brownstones that were converted into a Condominium Association. Condominium insurance is necessary for any who own a unit as it is a requirement for those who are financing. Additional coverage can be provided by a homeowners association. Keep reading to learn more about condominium association insurance policies.

What is the Condominium Association’s Insurance Policy?

For most condominium associations, common areas within and around the building (such as the roof, elevator, hallways and outdoor landscaping) are covered under a master insurance policy which is bought by the condominium. Each unit owner shares a portion of the cost of the insurance by paying monthly fees, known as HOA (Home Owners Association) fees.

What Does Condominium Insurance Cover?

Most condominium insurance policies cover the building, which includes the actual unit, its walls and some features. This includes any damage done due to weather conditions, fire or theft. Protection from legal liability is also covered. You will need your own policy for coverage to insure your personal belongings. 

Flood and Earthquake Insurance

While damages done to the building can be covered under the Condominium Insurance policy, it does not cover damage caused by floods, earthquakes or sinkholes. If you live in an area where either is common, addendum to the policy will needed for proper coverage. Before you move into a condominium, it is sometimes required that you purchase flood insurance as part of meeting mortgage loan requirements.


Vacant Condominium Insurance

If for any reason your condominium unit remains unoccupied for at least 30 days, your insurance policy may not cover any damage that is done while it sits empty. As empty units are considered a higher risk due to a higher chance of break-ins, it is suggested that if you are going to be leaving your unit unattended, you look into vacant condominium insurance.

Whether you are part of a small or large Condominium Association, you should have the opportunity to review the policy and make changes for the carrier and what is covered due to different needs that arise. A policy audit should take place annually.  For those shopping for a new policy, NE Insurance offers Condominium Association Policies and assists with auditing of current policies. Call our office today for questions at 800-443-7007 and one of our training team members can help you.

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