What is Condominium Association Insurance?
Condominium owners are typically responsible for insuring the condo units that they own, but they don’t own common places -- and, therefore, generally aren’t expected to provide insurance coverage for them. Instead, condo associations are responsible for insuring common areas, and they can do so through condo association insurance policies. Although this isn’t a widely known type of insurance, many insurance companies offer policies in Massachusetts.
Condominium association insurance is designed to protect the portions of a condominium property that condo owners share. These shared areas may include everything from common walls that are between two condo units to entryways that all condo owners go through. Some other common areas and items that many policies provide coverage for are:
- Elevators and stairwells
- Community rooms
If appropriate, a policy might also provide coverage for less common amenities, like swimming pools, business centers, fitness rooms, tennis courts and even docks. (These are just a few examples of unique amenities that a policy with the necessary terms and conditions could cover).