Condominium Association Insurance

Condominium associations have somewhat unique needs when it comes to insurance coverage. You don’t own the individual units, so you don’t need to cover the upgrades unit owners made, but you do own the common areas and the “bones” of the units.

Regardless, you need to have the right kind of insurance to protect your interests.

If you have any questions or need guidance with your insurance needs, please reach out to us. We're here to help you find the right coverage:

Because they are so different from other types of commercial property policies, it’s a good idea to work with a trusted agency, like The Insurance Center of North Jersey, to help you make sound decisions about the type of insurance that will meet the needs of the condominium association.

What Kind of Insurance Do Condo Associations Need?

While the needs will vary from area to area in order to accommodate state laws, local ordinances, and geographical needs, there are some types of insurance that are fairly universal. The following are on that list.

  • General Liability. Liability coverage is one of the most important types of insurance to have in today’s litigious society. This protects the association if someone is injured in one of the condominium’s common areas (laundry room, elevator, parking lot, etc.) and decides to sue the condo association. Your liability insurance premiums will cover your legal fees and damages awarded – up to the limits of your plan.
  • Building Insurance.  Building insurance for condominium associations is different from traditional building insurance. It provides coverage for common areas, the structure of the building, and machinery for the building.
  • Business Personal Property Insurance.  Condominiums have offices, decorations and artworks in hallways, furnishing, and perhaps even a sitting area where visitors can wait for unit owners to come and meet them. The equipment, art, and furnishing would be covered under a personal property policy.
  • Commercial Umbrella Insurance.  Liability insurance is critical in today’s litigious society. Unfortunately, it does not always provide sufficient protection. A commercial umbrella policy offers additional protection and kicks in for liability coverage when your general liability coverage has been exhausted.
  • Building Ordinance and Law Coverage. Helps you bring building up to code in the event that local laws require it.
  • Demolition Coverage. Provides for the costs of demolishing and clearing the debris from a covered loss.
  • Directors and Officers Insurance. Protects the directors and officers of the association from financial consequences if they are sued due to their association with the condominium.

Optional Coverages that may Prove Important

It’s not all about the insurance coverages mentioned above. Those are critical, but not the only types of coverage you’ll need for full protection. Here are some other important condominium association insurance coverages to consider.

  • Workers Compensation Insurance. Depending on the laws of your specific state, you may need to have workers compensation insurance coverage for your employees. It offers many benefits to business owners that protect you from lawsuits if employees are injured, become ill, or are killed while on the job.
  • Flood Insurance. Many condos are located on or near a large body of water. This means there is the potential for flooding at any given time and flood insurance is a wise investment. However, being away from the water or outside of traditional flooding zones does not mean you have no use for flood insurance. In fact, any floods occur each year in areas that aren’t considered high-risk areas for flooding. It doesn’t take much water at all, only one or two inches, to do thousands of dollars of damage to the common areas in a condominium.
  • Backup of Sewer and Drain. No one wants to experience a sewer or drain backup, but when it does happen, you do not want to be without the appropriate coverage.

Why Trust Insurance Center of North Jersey for Your Condominium Association Insurance Needs?

The Insurance Center of North Jersey has been serving the insurance needs of New Jersey homeowners and businesses for the past 80 years. We know New Jersey’s people and the insurance issues you face.

We are there with you from the beginning offering no-pressure quotes on rates and providing excellent claims support when you need it most. It doesn’t cost anything to check out what makes us different from other companies in the area.

Contact us today at 201-525-1100 or for straight answers to your condo association insurance questions.