Condominium associations require special insurance which protects them from claims and lawsuits. Condo program insurance is a generally packaged policy which covers the common risks faced by condominiums. If someone brings a claim or a suit against the association due to injuries or property damage, personal liability coverage will cover the costs for which your association might be liable. This coverage also protects the association if an owner causes damage to the property of another.
Property coverage in condo program insurance covers the building structure, including walls, floors, roof, and elevators. It might also cover changes and improvements made to the structure. Condominium property coverage is different from personal property coverage or renter’s insurance which covers the furniture and personal items by those renting or leasing the individual units.
There are a few types of insurance which you might find in a condominium association insurance policy. Additional living expenses insurance covers the cost of temporary housing when the building has suffered a catastrophic event. Loss assessment coverage goes further to cover damages of a claim or lawsuit if the initial coverage is not enough. Condo program insurance may also provide other coverages which may be unique to the insurance agency, type of condominium, or location. A qualified insurance agent can help find the right insurance for your association.