Associa’s Top 8 Frequently Asked Questions About Condominium Association Insurance


DALLAS, Jan. 11, 2024 (GLOBE NEWSWIRE) -- Associa, the community management industry’s largest company, is dedicated to helping homeowners associations (HOAs) and managed communities create attractive and welcoming environments that maximize resident quality of life. Insurance needs for Condominium Owners Associations (COA) are more complex than ever. Every condo association is unique in size, services, and other amenities, often requiring a customized policy. Read below to learn more about condo association insurance and how it works.

What Is COA Insurance?

Condominium association insurance coverage, also called a Master Condo Policy, is a type of insurance designed to cover the cost of condo property damage, protecting association members against liability. Much like an HOA Master Insurance Policy, condo coverage provides protection in common areas such as swimming pools, gyms, playgrounds, and parking spaces.

What Does COA Insurance Cover?

The general purpose of condo association insurance is to cover unexpected costs that result from damage, accidents, and injuries in shared spaces. A master insurance policy details exactly what the insurance covers and for how much. Some types of master condo policies include bare-walls coverage, walls-in coverage or all-in coverage. Consult with your insurance broker to determine which policy is best for your community.

Who Buys COA Insurance?

Because a Master Insurance Policy limits financial risk for the association and its members, many governing documents require a form of insurance. Board members are typically responsible for finding the best condo association insurance and securing the minimum coverage. Condo association insurance can be more complicated than other types of coverage, so find an agency that specializes in condo association coverage.

Who Pays for COA Insurance?

Condominium owners pay for condo association insurance through their regular dues or assessments. As members of a COA, they pay dues that help fund all aspects of the association, including daily operations, repairs and maintenance, reserve funds, and community improvements. Payment for insurance coverage is evenly distributed between association members by dividing the cost and including it in the assessments.

How Much Does COA Insurance Cost?

Because every COA is different, the cost of condo association insurance will vary among communities. Multiple factors – including the number of common areas, community location, and requirements spelled out in governing documents – can affect the overall cost. Keep these considerations in mind when getting estimates and consulting with insurance brokers.

Condo Owner Insurance Vs. Condo Association Insurance?

Condo association insurance offers financial protection for all association members, specifically in shared or common areas. In contrast, condo owner insurance protects the owner’s personal unit and belongings within the condo. An individual insurance policy will also have personal liability coverage that protects them in the event that somebody is injured in their unit. This is separate from condo association insurance, which only covers shared community spaces.

What Are The Basic COA Insurance Requirements?

If unsure of your community’s COA insurance requirements, check its governing documents. They will provide details on the coverage you need for your association, which is not necessarily the bare minimum offered by the insurance companies. Based on your community individual requirements, you may need additional coverage like general liability protection, property coverage, discrimination claims coverage, or worker’s compensation.

Who Handles COA Insurance Claims?

Condo association board members must understand the claims process. Make sure the board is familiar with the association’s policy and what is covered. Depending on the type of claim there may be different steps to the process, including documenting damage, obtaining estimates, or filing a police report in some cases. Refer to your policy and work with your insurance agent and association attorney to ensure that your claim is as thorough as possible.

About Associa

With more than 275 branch offices across North America, Associa is building the future of community for more than 6.5 million residents worldwide. Our 14,000+ team members lead the industry with unrivaled education, expertise, and trailblazing innovation. For more than 44 years, Associa has brought positive impact and meaningful value to communities. To learn more, visit www.associaonline.com.

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