Condo Master Policy Insurance in Massachusetts
What is a condo master policy?
Condominium associations are generally responsible for insuring the common-use areas within their complex. A condo master policy may help shield condominium associations in Massachusetts, by providing liability and property protections for the shared areas within complexes.
A condo master policy provides commercial insurance that’s tailored for condominium associations. Coverage normally protects associations against property losses and liability claims.
Which Massachusetts condominium associations should have condo association insurance?
The majority of condominium associations in Massachusetts should have condo association insurance. Failure to insure can lead to substantial losses, which would be passed on to individual condo owners.
Certain associations may be required to purchase specific insurance coverages. For instance, lenders commonly stipulate that financed buildings are insured against property loss. Additionally, association bylaws may stipulate that the association maintain specific property and/or liability coverages.
When setting up a policy, an insurance agent who specializes in condo association policies can help condo associations fulfill all lender and/or bylaw requirements concerning specific coverages and/or limits.
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.
How much do premiums for condo master policies cost?
Premiums for condo master policies can vary significantly based on factors like the size of a condominium complex, its age, construction, the number of individual condo units, and the common features on the property.
An independent insurance agent can help associations compare the rates of policies that meet their coverage needs. Unlike many captive agents, independent agents aren’t tied to any one insurance company. Independent agents can therefore share the most affordable policy options that meet all coverage needs, regardless of which insurance company is offering the best policy.
How can condominium associations in Massachusetts secure a condo master policy?
To obtain a condo master policy in Massachusetts, reach out to the independent insurance agents at PIKE Insurance. Our agents can help you present the association’s board with suitable policy options, and we can offer expertise in selecting the best policy to fulfill your association’s specific requirements.
