Skip to main content

Have you ever wondered what insurance you need for your condominium association? Are you uncertain about where to start? Take a look at our handy guide below to help you navigate the complex world of condo insurance!

What even is condo insurance?

Condo insurance protects your association in case of property damage or liability issues. This type of association insurance is intended to cover common areas only, since individual unit owners are responsible for obtaining their own insurance, which is generally referred to as the HO 6 policy.

Preparing for the worst is the best defense against risks, so equipping your condo association with the right insurance will help protect your association and its members, benefiting you in the long run.

What does condo insurance cover exactly?

One of the board’s fiduciary duties is to acquire and maintain adequate insurance coverage for the association, so it’s important that you know which policies cover what, and how much you need!

Your governing documents should determine the coverage requirements for your association. Identifying the amounts and types required by your bylaws is a great place to start.

First and foremost, there is the association’s master policy, which covers the association’s property and general liability. The master policy focuses on the basic structure and common areas of the condominium complex.

The two types of master policies are:

  1. Bare walls, or studs-out (external only): covers the basic building structure and common areas. Owners are responsible for everything inside their units, including fixtures, appliances, flooring, walls, and personal property.
  2. All-inclusive, or all-in (external and internal): covers internal structural elements and fixtures of the unit plus the common areas and basic building structure. Owners are still responsible for personal property.

In addition to the standard master policy, a condo association should also consider other important policies, such as directors and officers (D&O), workers’ compensation, crime, equipment, flood, dwelling, loss assessment, and umbrella coverage.

How much money will condo insurance cost me?

Condo insurance costs vary depending on what coverage you obtain. It’s important to understand the different types of coverage and determine what is, and isn’t, necessary for your association to save you both time and money.

It’s also important to consider the current market values when selecting and renewing policies. Consult your association management company or insurance broker to determine what coverage your association needs.

Additionally, condo insurance can be paid via premium insurance financing. Insurance premiums can be financed over the course of the year, rather than paying all at once. It also adds another layer of financial protection to your association. Our partners over at MintFish, who specialize in premium insurance financing, can help!

When should I get condo insurance?

If you don’t already have any, then now! If you do have insurance (which you most likely do), check when your renewal period is. It’s important to be proactive by conducting annual reviews of your coverage to determine what needs to be updated or added. You should also notify your insurance provider if there are any changes regarding coverage in your bylaws.

Blue Lime starts the quoting process 90 days before renewal to get you the details you need in order to make an informed decision. Ultimately, it affects your association’s well-being and bottom line, so your decision shouldn’t be rushed.

Where can I get condo insurance?

You should always seek out reputable insurance companies. Here at Blue Lime, we work to help board members mitigate their risks through customizable coverage plans. We know that boards are busy, and your time is valuable, so our quoting and claims services are quick and easy! Find out what we can do for your association today!