What Protections Do Condominium Association Insurance Policies Provide?
In general, condominium association insurance policies offer a combination of liability and property coverages that benefit Massachusetts condo associations. Liability coverages normally protect condo associations from claims and suits that accuse them of being responsible for injuries or property damage that people sustain. Property coverages typically protect common areas against fire, theft, vandalism, wind damage, and similar perils.
(Just as the exact areas that a policy insures can vary, the perils a policy provides protection for can also vary.)
Who Pays for Condominium Association Insurance?
Condominium association insurance is designed to protect condo associations, and it’s usually purchased by condo associations. Therefore, condo associations normally pay the premiums associated with this insurance.
Many condo associations in Massachusetts, however, pass the costs of condominium association insurance onto individual condo associations. Premiums are frequently added onto annual assessments, dividing a policy’s annual premiums equally by the number of units in a complex. Deductibles for claims are sometimes passed on as special assessments, dividing a claim’s deductible by the number of units in a complex so that each owner pays their share of the deductible.