What is a Condo Master Policy?
Massachusetts condominium associations are generally responsible for the upkeep and insurance of their complexes’ common areas. A condo master policy can help protect common areas from perils that cause damage and associations from liability lawsuits that are related to incidents occurring in these areas.
A condo master policy is specially developed to meet the insurance needs of condominium associations. A policy will normally come with a number of coverages, each of which has its own specific terms and conditions.
Since condominium association policies often have multiple coverages and can be complex documents, associations should work with an insurance agent who specializes in condo association insurance when selecting a policy. A knowledgeable agent will be familiar with the risks that condo associations commonly face and know what coverages typically help protect against those risks.
What Massachusetts Condo Associations Should Have Condo Association Insurance?
Most condo associations in Massachusetts should carry condo association insurance, and many may be required to by the terms in their building loans and/or bylaws. If there’s not sufficient protection in place, an association’s reserve funds could be financially devastated by a disaster or lawsuit. In some cases, an association might even need to call for a special assessment in order to make up a deficit caused by the incident.
What Sorts of Common Areas Can Condo Association Insurance Cover?
Condo association insurance policies can often be adapted to protect a variety of common areas found in complexes. Depending on a particular policy’s terms and conditions, it might offer coverage for the following:
- Outdoor fences, landscaping and hardscaping
- Buildings’ entryways, stairways, hallways and elevators
- Building’s exterior walls and shared walls between units
- Swimming pools, community rooms, exercise centers and similar amenities
- Utility rooms, maintenance sheds and similar places
- Other common areas as defined in a policy
Are Individual Condo Units Covered by Condo Association Insurance?
As with most insurances and coverages, whether any particular condo association policy protects individual units is determined by that policy’s specific documents. Broadly speaking, most condo association policies afford one of three levels of protection for units:
- Bare walls-in protection, which typically covers the walls and essential systems of units
- Single entity protection, which typically adds coverage for standard features in units
- All-in protection, which typically adds coverage for upgraded features in units
All-in protection is also referred to as “modified single-entity” protection.
Are Condo Association Policies Expensive?
Condo association policies’ premiums are about as varied as the different condo complexes they insure. Many factors, including location, number of units, square footage, amenities and past claims history can influence how much a particular policy costs.
Despite the variance, however, these policies tend to have premiums that associations can afford. Most associations divide the cost of their policy by the number of unit owners and include each owner’s portion of the annual premium in the association’s yearly assessment. This keeps each person’s share manageable, and it ensures reserve funds aren’t depleted to pay for a policy.
How Can Condominium Associations in Massachusetts Get a Condo Master Policy?
To find a policy that’s right for your Massachusetts condo association, contact the independent insurance agents at Flavin & Flavin Insurance. Our agents have assisted many associations in the state with their coverage needs, and we have the expertise necessary to get your association the right policy. Since we’re an independent insurance agency, you can trust our team members to recommend the best available condo master policy regardless of what insurance company offers the policy.