Insuring Amenities in Condo Complexes

As the weather gets warmer and the days get longer, a lot of unit owners take advantage of the amenities that their condo complex may provide. These amenities vary from the basic balcony attached to a unit owner’s condominium to the in-ground pool widely used during the summer months. Whether it’s a pool, basketball court, or walking trail, your tenants may ask, “What exactly do I own?,” and you may ask yourself in return, “What is the association’s responsibility for all these amenities?”

The association’s governing documents should be the first place you should look to determine responsibility for insuring amenities (otherwise known as common areas). As a whole, the responsibility for coordinating the insurance for common areas typically falls on the board, even though the general common areas are accessible by everyone who lives at the complex.

Amenities are usually underwritten for a certain fee and should have adequate liability limits in case something happens. To prevent an unforeseen lawsuit, it’s important to set clear rules and restrictions in place. A well-executed operation would have a committee for each amenity to set guidelines, the board adopts those guidelines and then has the management company enforce those guidelines both verbally, in writing, and with adequate signage.

Basic Liability Is Not Enough

Basic liability coverage is a must-have for associations, but just having the minimum is not enough for insuring high-risk amenities. Pools that are not regulated well are simply an accident waiting to happen. Young children can drown, injure themselves while diving, or get themselves into all sorts of “you have to hear it to believe it” situations. Pools can raise an insurance premium significantly.

Moreover, some “amenities” that really are “necessities” bring about increased liability risk for the association. While winter may be over, stranger things have happened with the New England weather. Snowy or sandy sidewalks trigger a mirage of slip and fall claims because the Massachusetts courts place more weight in the association clearing their sidewalks in a timely manner rather than the unit owner using common sense to determine how to walk in these areas.

Reviewing your current policies with H&K Insurance is a great first step in making sure your common amenities are properly insured. Reach out to us at 617-612-6504 or fill out this handy form below to receive a custom quote.

Condominium Insurance – Associations

Brendon Kilcoyne, Sales Manager for H&K Insurance Agency Inc. services condo associations and individual condo owners throughout the Greater Boston Area. With over 15 years’ experience providing coverage to personal and business clients, H&K is aptly known as a pioneer in the insurance industry finding and administering the best combination of coverage and service for the right price. Call him at 617-612-6504 to discuss your options today!