Condominium Master Policy

Condo Association Master Insurance

Condo buildings have unique insurance needs because each unit owner owns a portion of the building.  Whether a 100 unit high-rise or a small duplex with two units, condo owners need to form an official association to oversee the management of the building.  Ensuring everything in your condo community runs smoothly is no small feat.

When it comes to insurance, every condo building needs a master policy. This policy provides coverage for shared risks: general liability, common area property, and several optional areas of risk as well.  Every master policy must include the following standard coverages:

  • General Liability covers the condo association from a liability standpoint. A classic example is the "slip & fall", where someone is injured on your property and files a lawsuit. With a master policy you will have liability protection. The coverage amount for liability can vary, but is often $2-5 million dollars.
  • Property provides coverage for the common areas of your condo building, including hallways, elevators, sidewalks, the roof, basement, and building equipment such as boiler and machinery. Much like a homeowner policy, these items need to be covered for a condo building.

Optional coverages take your building protection even further with better property coverage, personal liability coverage for condo board members, and even coverage for theft of condo funds. There are dozens of add-on coverages that you might consider but here are a few:

  • Directors & Officers provides protection for the directors and officers of your association in the event they are sued in conjunction with their performance as association members.
  • Demolition & Increased Cost of Construction covers the cost to demolish and clear the site of the undamaged parts of the building after a major loss.
  • Increased Cost of Construction provides for extra expenses associated with bringing a property up to current building code after a loss.
  • Backup of Sewer & Drain provides coverage for a specified dollar amount for damage related to sewer or drain backup.
  • Crime & Fidelity- This part of the policy provides coverage for the theft of condo association funds or other financial misconduct by an association member.

No two condo associations have the same coverage needs. Some associations only cover the roof and adjoining walls; some go so far as to cover the plumbing, electrical, and sewer systems. Some only work to protect and maintain the common grounds.  With so many details and options to consider, we can match the needs of your association with the appropriate carriers and policies.

To get a free quote, either complete our online condo insurance quote form or call us at 800-922-8381.