Condo Association Insurance in Massachusetts

What is Condo Association Insurance (aka Condo Master Policy)?

Condo associations are usually responsible for maintaining the common areas of their complexes. Normally, associations need to keep these areas clean and in good repair -- and associations need to properly insure the areas. Condo association insurance policies help Massachusetts condominium associations get the coverages they need for the common areas they maintain.

Condo association insurance policies can be used to protect many different kinds of common areas. With the right coverages and protections in place, a policy might offer protection for:

  • Courtyards, walkways, fences and other landscaping
  • Foyers, entryways, stairwells, elevators and hallways
  • Exercise rooms, pools, business centers and other amenities
  • Common walls in buildings and buildings’ exterior walls
  • Maintenance sheds, utility rooms and similar spaces

These are just some examples of all that a policy may provide coverage for. There’s a policy for almost any kind of common area that a condominium complex may have.

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What Associations in Massachusetts Need a Condo Association Insurance Policy (aka Condo Master Policy)?

Most condo associations in Massachusetts should have a condo association insurance policy. Without a policy, an association wouldn’t have insurance protection against major damage or expensive liability suits. A big expense could not only devastate the condo association, but it might also financially harm everyone who owns a unit within the complex.

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Condo Association Insurance in Massachusetts

What Protections Does Condo Association Insurance Offer?

As is true with most kinds of insurance, the protections offered by condo association insurance policies vary. Nevertheless, most policies offer a combination of property and liability protections.

The property protections within a condominium association policy may cover common areas and offer some protections for items inside units. How much protection is offered for in-unit items depends on the type of condo association policy:

  • A bare walls-in policy will often only cover the walls of units
  • A single entity policy will frequently add coverage for standard features
  • An all-in (modified single entity) policy will typically add coverage for upgraded features

The liability protections provided by a condo association policy normally help pay legal fees, judgements and settlements associated with covered liability lawsuits that are filed against an association. Depending on a policy’s terms and conditions, covered lawsuits may include slip-and-fall, slander, libel, negligence and other suits.

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What Does “Policy Wording” and “Per Condominium Documents” Mean in a Policy?

Within the section that details what in-unit protections are offered, condo association policies frequently have either “based on policy wording” or “per the condominium documents.” The former statement means that the in-unit coverage is determined by language within the policy, which may be found in this section or another. The latter phrase means in-unit protections are determined by the association’s official documents rather than the policy directly.

How Do Associations Pay for Condo Association Policies?

Most condominium associations pass on their condo association policy’s premiums to unit owners. They frequently do so through annual and special assessments. Premium payments can be divided by the number of unit owners, and then the amount can be added to each unit owner’s annual assessment. Deductibles can be handled similarly, or they can be charged via a special assessment rather than through the annual assessment. Whether an association uses a special or annual assessment for deductibles usually is determined by how much the association has in savings.

Condo Association Insurance in Massachusetts

How Can Condo Associations in Massachusetts Get Condo Association Insurance?

Selecting a condo association policy is a major decision. It not only impacts how well the association is protected, but it also affects everyone who owns a unit within the associations complex.

For help comparing available policies and making a decision, condo associations should get in touch with an independent Massachusetts insurance agent who specializes in condo association insurance. An independent agent can compare many insurers’ policies, and someone who’s familiar with this type of insurance will be able to provide wise guidance when selecting a policy.

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