Condo Insurance Archives
A new way of living is taking root in the housing market. Founded in 2008, Airbnb has ushered in a wave of people leasing and renting short-term lodging to vacationers, college students, etc. Not confined to owners of homes, condominium unit owners and long-term renters of condos are utilizing Airbnb to bank some extra cash, which creates increased liability for both the person who is supposed to be occupying the unit and the association.
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?”
We all know about the standard insurance coverages for associations. At the bare minimum, you need to insure your complex with a condominium master policy, and it would be wise of you to invest in D&O and crime (fidelity) coverage for your association.
A condo complex is typically made up of two components, the common structures of a dwelling that is accessible to everyone and the units that are owned by individuals. Two different policies, the condominium master policy and HO6 policy, cover the spaces and it’s important to know where coverage for one begins and the next ends.
Good board members are hard to find never mind retain. The board is made up of volunteer unit owners responsible for enforcing the rules and by-laws of the association. Some unit owners view the board as a bit of a drill sergeant. In the rule-breakers eyes, the board does things too much “by the book.” Whether it’s collecting money or enforcing governing documents, there are many ways a unit owner can grow disgruntled.
We’re used to hearing about mold, but what about equally common health hazards like lead, asbestos and radon? Less-commonly talked about does not mean less of a risk. In fact, the impact of these health hazards is very real, and depending on the state you reside, condo associations could be required under the law to mitigate these risks.
One lawsuit can be costly to any association. A resident could injure themselves, be unable to work, accumulate a mountain of medical bills and you, the association, could be paying the damages for all of it.
To avoid getting into this predicament it’s important to have clear snow removal guidelines in place. We recommend hiring qualified contractors and advising all residents not to take matters into their own hands.