Condo Association Insurance Vs. Condo Unit Owners Insurance

Condominium associations generally carry personal injury and property insurance. However, individual condo owners are usually not fully covered for all conceivable loss and liability under an association's policy. An association's coverage is usually limited to building exteriors and common areas such as courtyards and parking lots. An individual condo owner typically must insure against injuries and damages occurring inside the four walls of his unit. Ad Obama HARP Program 2017 Verify Your HARP Eligibility Status HARP 2017 Verification Takes 1 Min! harp.mortgagerefinancerates.org Association Insurance Condo associations typically have insurance for accidents and bodily injuries occurring within a complex's common grounds. For example, a slip and fall in a pool area or parking lot generally falls under the association's insurance. Damage to a building's exterior is normally covered by an association's property damage coverage. For example, storm damage to vinyl siding or roof shingles is generally covered under the association's policy. Associations also insure commonly owned personal and affixed property like a tool shed and its contents. Individual Insurance Individual condo owners must insurie against accidents and damages occurring inside their units. For example, if your kitchen walls are damaged by a grease fire on your stove, generally your individual policy would cover repairs. Likewise, if someone is burned in the fire, your individual coverage would apply to their injuries. If your personal belongings are damaged or destroyed in a catastrophe, such as a fire or storm, individual, content insurance covers your losses. Government Requirements Certain state and federal regulations mandate insurance coverage for condominium associations. For example, Connecticut requires associations insure common areas for medical, bodily injury and property claims. Federal lending programs, Fannie Mae and Freddie Mac, require the same. Federal regulations require flood insurance in flood zones and complexes with 20 plus units must insure against fraudulent acts by an association. A condo complex must comply with federal insurance guidelines to qualify for federally backed loans. Bylaws and Articles Each condominium association is governed a set of articles or bylaws. They define an association's specific obligations to carry insurance. They provide policy requirements for deductibles, limits of liability, and the depth of protection for personal injury and property claims. Condo owners are entitled to review their bylaws, articles and associations' insurance policies. Condo owners should understand the specific coverage provided through their associations so they can make informed choices when considering individual policies.