Purchasing Condo Association Insurance For Your Units

road of identical looking condos across from one anotherCondo association insurance is designed to protect members of condo associations and condo owners. In this guide, we’ll take a closer look at purchasing condo association insurance and offer tips to find the best policies.


Condo association insurance is a unique type of insurance policy, which is designed to offer protection for condominium associations. These policies relate blocks of apartments and communal facilities, rather than individual units.

Condo associations face additional risks and hazards when compared to standard apartment owners, including managing communal areas, facilities and services, and external sites, such as car parks and swimming pools.

Condo association insurance policies provide peace of mind for members of the condominium association and they are beneficial for bodies and groups of all sizes and scales. Whether you are part of an association that has five or 500 members, you can protect your assets and reduce the risk of having to cover unexpected costs.

What Is Condo Association Insurance and Why Is It Important?

Condo associations are bodies, which are established to manage the building or facility. Unit owners join together to create a group, which is responsible for taking decisions and ensuring that the relevant insurance policies are in place.

Condo association insurance policies recognize the unique challenges of managing a property with multiple properties and communal areas. The association is responsible for laying out laws, regulations and bylaws relating to insurance requirements for the building. This type of insurance covers the risks faced by owners through a condo association master policy. The master policy outlines the insurance requirements of the association and the individual unit owners.

Condo association insurance is important because it provides protection and peace of mind for unit owners as a collective. While every condo owner will be responsible for ensuring that they have the relevant insurance for their property, there are additional requirements when you own a home that is part of a building or development. Association policies offer additional coverage, including measures to include communal areas and protect against lawsuits, for example.

What Does Condo Association Insurance Cover?

There are three main types of condo association insurance policies, including:

  1. Bare Walls Coverage: This type of coverage relates to the basic structures of the building, including walls, roofs, flooring and elevators.
  2. Single Entity Coverage: This covers the same structures as bare walls coverage as well as standard fixtures within the unit. It is important to note that the unit owner will be responsible for their own personal property and any renovations or improvements they make at their own expense.
  3. Modified Single Entity Coverage (or All-In Coverage): This is a more comprehensive policy, which covers interior fixtures, fittings, installations and improvements, as well as the basic structures of the building. In this case, the unit owner will only need basic insurance for their personal property as everything else is covered by the association’s master association policy.

The condo association will decide which level of coverage is required, and unit owners will need to act in accordance to ensure they have the right insurance for the group as well as for their own unit.

Protection Against Legal Action

One of the main reasons to ensure that you have the relevant protection for your condo association is the risk of legal action. Accidents happen, and in buildings where there is a swimming pool, a hot tub, communal spaces or a fitness center, the risk of accidents and injuries increases. There is a potential for lawsuits so it’s crucial to invest in the right insurance policy.

It is common for condo associations to recommend general liability insurance, which covers a broad spectrum of accidents and incidents that could happen at a complex. Research suggests that most associations have general liability coverage up to $2 million- $5 million.

There are additional policies and features that condo associations may consider, so they benefit from more comprehensive coverage. These include:

  • Directors’ and Officers’ Liability Insurance: This protects the directors and officers if somebody decides to pursue legal action in light of the decisions they make. As association members volunteer their time, this kind of insurance can provide peace of mind and reduce stress.
  • Crime and Fidelity Coverage: This protects against members stealing from the association.
  • Equipment Breakdown Coverage: For example, boiler coverage, to manage costs associated with repairs and replacements.
  • Workers’ Compensation Insurance: This protects workers who provide services on the site.
  • Hurricane and Flood Coverage: This is not usually part of the master policy, but it may be wise to add coverage if you live in an area where there is a high risk of unpredictable or extreme weather conditions.
  • Sewer Backup Coverage: This is an extra feature that will provide a payout for damage caused by a sewer backup.
  • Personal Property Cover: This covers the personal property of the association.

Finding the Right Condo Association Insurance For Your Units

Condo associations face additional risks. As well as natural disasters, theft, vandalism and fire, condo owners must also think about shared access areas and communal spaces and liability issues linked to swimming pools, gyms, playgrounds and car parks.

Condo association insurance is designed to provide peace of mind and protection for unit owners. The association is responsible for determining the level of coverage and outlining this through the master policy. Every member should be aware of the policy inclusions and their individual insurance requirements, which provide additional coverage for the unit outside of the association insurance.

If you are on the hunt for condo association insurance, it is beneficial to be clear about your requirements and preferences before you start comparing deals and looking for offers. Once you have outlined your priorities, you can contact Anderson Insurance Agency and seek expert advice to compare policies and prices.


It is essential for condo associations to have the relevant insurance policies in place. If you are searching for a new policy, it is crucial to ensure that you invest in the right coverage and that you get the best value for your money. Contact Anderson Insurance Agency today to speak to experienced, knowledgeable advisers.