Whether you believe that life happens by accident or design, the most important thing is to take steps to protect yourself in the event of unforeseen circumstances.
As a condominium board member, unit owner, or property manager, learn what kind of insurance coverage is best to fully protect you from potential disaster or difficulties.
Many condominium declarations specify that the association must purchase insurance for the units and surrounding common areas and facilities. They also specify what type of coverage you must have, known as the Master Policy of Insurance.
For the common areas and units, insurance usually covers for the destruction or damage of walls, ceilings, floors, and original fixtures and cabinets. It should also cover pools, the clubhouse, and all associated buildings and facilities.
Board members occasionally make mistakes, such as failing to properly secure the right bids on a contract to accidentally (or intentially) losing the association’s money. It’s wise to have options to replace the money lost, such as a good directors and officers liability policy, or fidelity insurance covering theft.
People will undoubtedly get hurt in common areas of the association. That’s why it’s important to have general liability, worker’s compensation, or umbrella policies in place.
As a unit owner, it’s also a good idea to have an HO6 policy, which covers anything the Master Policy doesn’t.