Condo association insurance is an insurance policy carried by the condominium association that insures against accidents and injuries that occur on the condominium complex's common grounds. Damage to the exterior of the association's buildings is covered under condo association insurance.
Condominium associations are generally governed by a set of bylaws or articles. These guidelines set out the specific obligation for the association to carry insurance, and the policy requirements for limits of liability, protection for property claims and personal injuries are all included in the bylaws or articles. Condo owners should understand the specific coverage that is provided through their condo association, so they can make better choices when it comes to choosing their own individual policies. While each insurance company provides different coverage through its own condo association insurance program, most insurance policies cover damage to landscaping and all exterior buildings. Most policies include general liability insurance, directors and officer’s liability insurance, crime insurance and fidelity insurance.
Individual condo owners need to insure against damages and accidents that take place inside of their units. Any damage that is sustained directly inside a condo unit is the responsibility of the condo owner and covered under their own personal insurance policy.