What common areas is condo association insurance able to protect?
Condo association policies can be tailored to cover a wide range of areas under the responsibility of the association. Depending on the particular terms and conditions, policies might provide coverage for:
- Exterior elements: Such as walkways, fences, landscaping and sheds.
- Passageways: Such as entryways, hallways, elevators and stairwells.
- Amenities: Such as pools,fitness rooms, community rooms and business centers.
- Maintenance areas: Like maintenance rooms, utility rooms and HVAC spaces.
What are bare walls-in, single entity, and all-in condo association insurance policies?
While not the primary focus of condo association insurance, some policies do offer extensive coverage for in-unit features. Policies can generally be divided into three categories based on the level of coverage provided within individual condominium units:
- Bare Walls-In Policies: Generally cover only basic components of units, such as walls, electrical and plumbing.
- Single Entity Policies: Typically cover basic components as well as standard features like cupboards, counters, standard fireplaces, and flooring.
- Modified Single Entity Policies: Offer coverage for basic components, standard features, and optional features like all hardwood flooring and granite countertops.
Modified single entity policies are also referred to as all-in policies due to their comprehensive coverage.
Which of these three condo associations should choose depends on individual owner preferences. Some associations might have owners who favor lower premiums with a bare walls-in policy, while others might prefer robust protection including upgraded features in their units. Some owners may want a balance between minimal and extensive protection.
An experienced insurance agent can guide association boards in determining the most suitable policy type for their condo owners and assist in comparing different policy options within the selected category.