How well do you know your Master Policy? Does it cover all of your Condominium & HOA needs? As you know, condominiums present a unique insurance dilemma. Getting a “Master” Policy that covers all individual units’ collectively in so far as common areas and the outer building structure that the entire property management team and elected condo board can agree on is a daunting task. Here at Centennial, Condominium & HOA insurance is one of our main focus and our team of agents can help walk you through what each item means and how it will help secure the right coverage for your building.
In this process, we ensure that under each master association policy, each building is covered and named separately. The condo building master policy must cover 4 key items: General Liability, Property (in common use areas), Director & Officer Liability, and Crime/Fidelity. These entail the following:
This covers the condo association against liability claims. The most common claim is a slip and fall accident where someone is injured on the property. This provides coverage for areas like hallways, elevators, sidewalks, roofs, swimming pools, and other common areas.
Property insurance covers the condominium buildings and other common property for perils such as fire, wind, hurricane, and water damage. Property coverage values are based on the value of the property itself.
Fidelity Coverage is required by statute and protects the funds of the association from theft. FL statute requires that the association maintain fidelity coverage in an amount equal to the maximum amount of funds the association has at any time during the calendar year.
This vital add-on coverage is for the boards’ protection to cover the Director & Officers.
It provides protection in the case of a lawsuit in which they are named due to position. Condo board designations are elected volunteer positions. They should never have to assume legal or financial responsibility individually for decisions made for the owners by the association.
Other Optional Coverages To Consider
Worker’s compensation covers any on the job injuries, protecting your company from law suits.
Construction upgrades most often applies to bringing an older building up to code beyond its original state.
This provides coverage for a specified dollar amount for damage related to sewer or drain backup.
This provides auto liability coverage for accidents while using a personal vehicle and conducting association business.
This provides coverage for the buildings from damage due to high rising water or storm surge. Even if you are not located in a required flood zone area, it is recommended to consider carrying flood coverage to protect your association property because a large percentage of National Flood claims occur to properties which are not located in low risk zones.
Cyber liability covers you in the event that your company’s data is hacked, changed, leaked or destroyed.
When it comes to selecting coverages, many condo association board members are surprised when they see that they can get a lot of additional coverage for just a small additional fee. The bulk of the premium comes from the basic liability and property coverage. Additional coverages usually only account for a slight increase in fees over the base price, and are well worth it.
Each condo unit owner needs to have a homeowner’s policy for their personal property inside of the condo, including the internal structure in many cases, as well as interior liability. This condo-specific homeowner’s policy is called an HO6.