Condo Association Master Insurance – Reccommended Coverage (continued) Boston, MA
In our previous blog we discussed Recommended Coverage for Condo Association Master Insurance policies. This blog is a continuation from our previous one.
Below is additional coverage available for purchase that is not included in your standard condo association master insurance policy, but certainly recommended. Here is a listing of the top hit list: 'All In' or 'Walls In' coverage, Directors & Officers Coverage, Water Damage & Backup of Sewers and Drains, Ordinance and Law Coverage, Crime Coverage, Umbrella Policy, and Workers Compensation.
'All In' or 'Walls In' coverage – In the event of a claim, “ALL-IN” coverage means the master insurance policy will pay for the covered damage to the building and all permanent fixtures and improvements made to each unit. In the event of a claim “WALLS-IN” coverage will pay to fix the frame of the building. In other words your association or each unit owner is responsible to pay to have the rest of the building repaired. “ALL-IN” coverage is the preferred and recommended coverage on ALL policies!
Directors and Officers Coverage - When directors are acting on behalf of the association, this provides them financial protection against law suits in case they make an error or bad decision with regards to the condo association. This is an important coverage that is often missed.
Water Damage & Backup of Sewers and Drains – This is NOT FLOOD coverage. This coverage provides protection if your sewers and drains back up causing water damage to your building.
Ordinance and Law Coverage – There are 3 parts to this coverage, Part A – Coverage for the loss of the undamaged portion of the building, Part B – Demolition Cost Coverage, and Part C – Increased cost of construction. Let's provide an example of when this coverage would come into play. Your building catches fire and 40% of it burns down. The city evaluates your loss, determines it is unsafe to fix the building (Part A), requires you to knock it down (Part B), and rebuild to the current buuilding codes (Part C)! If you don’t have this coverage your condo association will be issuing a loss assessment to each unit owner to pay for the additional 60% of the undamaged portion of the building that insurance company is not going to pay for, the demolition cost, and the increased cost to rebuild back to code.
Crime Coverage – Provides coverage for your condominium association’s bank account if the treasurer or another director were to steal money from the account. Most associations require this coverage to be purchased. This is inexpensive to purchase.
Umbrella Policy – This provides your association an additional $1,000,000 of general liability insurance. Higher limits are available.
Worker’s Compensation – This is Employer Liability coverage to financial protect your condo association. If your condominium association has employees or contractors working on your building or property this provides coverage in the event of an accident where the employee or contractor gets injured on the job.
This is the short and sweet version of our top hit list of recommended coverages for condominium associations. This list may or may not be applicable to your association. Please contact us for a review of your condo association’s master insurance policy to see if you are properly covered!