We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is Condominium Association Insurance?

By Tommy T.
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Condominium association insurance provides property and liability insurance for the overall owners association, whereas individual condo owners maintain separate insurance for their respective interests. Depending on the laws in the region where the condominium is located, the ownership interest of the association may vary from common areas to the entire structure, with individual condo owners only owning air space within their unit. Condominium association insurance policies will vary depending upon the extent of the association's ownership and obligations.

This type of insurance can be split into two main types of coverage: property and liability. Property coverage will insure all real and personal property owned by the association. In a condo building, the deed or Conditions, Covenants and Restrictions (CC&R) will outline exactly what is owned by the association. The association is then obligated to purchase and maintain condominium association insurance in an amount sufficient to replace the property in the event it is damaged. Insurance companies offer policies tailored to the interests of the association, and they work in concert with the unit owner policy to avoid gaps or duplication of coverage.

The condominium association's CC&R will also specify exactly what type of liability insurance and how much in limits are required. At a minimum, the condominium association insurance will consist of general liability insurance to protect against claims made by third parties injured on the premises. Condo owners will have an individual unit owner policy to protect against their individual liability incurred within their unit. As with the property policy, specialized policies should ensure the condominium association insurance does not conflict or overlap with the unit owner policy.

Condominium association insurance should also contain directors and officers (D&O) liability coverage to protect the interests of the individuals serving on the board of directors of the association. D&O policies provide peace of mind for the condo owners who volunteer to manage the association and may be personally exposed to claims by other owners.

The specialized nature of condominium association insurance means that it should be procured with the guidance of an insurance agent that specializes in condo insurance. The agent should fully understand the CC&R of the association and its insurance obligations in order to secure the proper insurance policies. Certain insurance companies specialize in condominium association insurance and provide a product that is simply modified to meet the specific needs of an association.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.