Condominium Association Insurance vs. Condo Unit Owner Insurance

February 02, 2021

Condominium Association Insurance vs. Condo Unit Owner Insurance


Of the many things your association assessment pays for, insurance, is one of the most important. Association governing documents and state law require the association board to purchase adequate insurance as part of a comprehensive risk-management program.


Associations have commercial insurance coverage which include both property and liability. 


Property insurance covers loss of or damage to any common structures or physical property caused by fire, hail, storms or other natural events. For instance, if high winds uproot a tree that damages a common roof, the association’s property insurance would cover the cost of repairs less the deductible. Property insurance may also cover what we call “human perils” such as theft or vandalism.


Liability insurance covers losses that would result if someone took legal action against the association for an injury, financial loss or other type of damage. For example, an important type of liability insurance, called Directors’ and Officers’ insurance, covers volunteers like board and committee members so they’re not jeopardizing their personal assets to serve the association.


The association’s insurance does not cover owners condos or belongings. Each owner should have his or her own insurance policy.  As the owner of a condominium unit, your insurance needs are different from other homeowners.   One would need Property coverage for the condo and your personal belongings as well as personal liability.   Loss of use and loss assessment coverage are also important coverages.   If you need information about condo unit owner insurance, talk to a licensed insurance agent who specializes in community associations. Or you may want to talk to the association’s insurance provider; this agent will know exactly where the association’s master policy coverage ends and where yours should begin. This prevents you from over or under insuring.


Contact McDaniel Insurance Agency, an association insurance specialist to insure your condominium association and for your personal condo policy.   Contact Deanna McDaniel at 502.909.0920 or