Condominium Association Property Insurance

February 08, 2022

Condominium Association Property Insurance

Property coverage covers the buildings and business personal property of the association.  It is vital that the property of the association is insured for the amounts that it would take to replace  in the event of a total or partial loss.

Property coverage limits are based on the value of the buildings.  The buildings can be insured at:

  • Guaranteed Replacement Cost – replacement cost with no limit and does not state a specific limit in the policy
  • Extended Replacement Cost -replacement cost which provides an additional percentage above the stated limit in the policy
  • Replacement Cost – the amount which pays for the loss based on the actual replacement and may be limited to the values insured on the association’s insurance policy
  • Actual Cash Value – the amount needed to replace the building minus depreciation

The replacement value can be ascertained by the Board and agent both reviewing the association’s governing documents for clear guidance on the areas of insurance responsibility for the unit owners and the association.  Your agent should have replacement cost valuation tools to assist in coming up with a proper valuation for your association.

  • These items may need property coverage specified in the policy:


  • Alarm systems
  • Appliances used for refrigeration, ventilating, cooking, dishwashing or laundering that are not contained within individual units
  • Elevators
  • Boiler
  • Entranceway
  • Fences
  • Fire extinguishing equipment
  • Fixtures, outside of individual units, including outdoor fixtures.
  • Floor coverings
  • Outdoor swimming pools
  • Retaining walls
  • Sidewalks
  • Windows
  • Irrigation systems

*Note: there may be other items which should be included for your association.


Contact McDaniel Insurance, your community association insurance specialist, to provide your Kentucky condominium association with the customized, comprehensive coverage it deserves. Call 502.909.0920 or email  We are available to quote your association all over Kentucky including Louisville, Bowling Green, Lexington condo associations and every community in between.