Every Condo Association knows that insurance is essential. However, there is often confusion about what kind of coverage you should have. Hence, below is a list of the key coverage that should be included in your Condo Master Insurance Policy. Here’s a handy checklist for any officer looking at proposals for the Condo Association’s insurance.

7 Condo Master Insurance Essentials

1. Property Coverage


Pays for direct physical loss or damage from a covered cause of loss to the building or structures. These are those listed on completed additions, fixtures, permanently installed machinery and equipment. It includes personal property used to maintain or service the building or structures. Moreover, examples of these are outdoor furniture, floor coverings, appliances, and fire extinguishing equipment.

Building Ordinance or Law

Loss to undamaged protion of building as a result of demolition persuant

Loss to undamaged portion of building as a result of demolition pursuant to a building ordinance or law.

Demolition Cost of the demolish and remove debris

Demolition cost of the demolish and remove debris of the undamaged parts of the building when it is required by building ordinance or law.

Increased Cost of construction covers increased cost to repair

Increased cost of construction covers cost to repair, reconstruct or remodel damaged or undamaged parts of the building to comply with a building ordinance or law.

Inflation Guard

Automatically increases coverage by a certain percentage every renewal in order to keep up with the effects of inflation. Furthermore, it means the building coverage on a renewal document will be 2-8% higher than the previous year.

The policy renewal will be between 2 to 8 higher than the previous year

Sewer Backup

Pays for loss or damage caused by water that overflows from a sewer or draining water Including water that enters into, and then overflows from a sump pump. It also includes any other system designed to remove subsurface water from a foundation area.

Equipment Breakdown

Pays for loss or resulting loss of income caused by covered equipment, e.g. boilers.

2. General Liability

General Liability (a.k.a. Slip and Fall or Premise Liability Coverage) protects the association from claims arising from injury or property damage to third parties caused by negligence. Moreover, each occurrence limit is the most the policy will pay for each covered claim. Furthermore, the aggregate amount is the maximum the insurance company will pay in one policy period. Hence, this is usually double the occurrence limit.

General Liability Covers Property Damage and personal Injury

3. Directors and Officers

Pays the amount insured is legally obligated to pay as a result of a claim. Additionally, this includes wrongful acts or decisions arising out of their capacity as a director, trustee, officer, committee member, or volunteer of the organization.

4. Employee Dishonesty / Fidelity

Pays for direct physical loss to business personal property and money or securities resulting from dishonest acts of the insured’s employees. Furthermore, this coverage applies if the property manager or one of the association’s employee absconds with the money.

75 of employees have at one point or the other stolen from their employers

5. Umbrella

Amount of liability coverage, in addition to underlying policies for Directors and Officers, and, additionally, to General Liability coverage.

6. Workers Compensation

Mandatory coverage for the associations’ employees on the payroll.

This coverage is mandatory by law

7. Hired and Non-Owned Automobile

Pays for bodily insurance or property damage arising from the maintenance. Additionally, the use of a hired auto during business by the insured or an employee. Moreover, it includes the use of the non-owned automobile in the business by any person other than the insured.

In addition, other coverages that are part of the package are:

  • Debris removal
  • Exterior building glass
  • Fire department service charge
  • Newly acquired or constructed building
  • Outdoor property and signs
  • Preservation of property
  • Pollutant clean-up and removal
  • Personal effects
  • Specified property
  • And valuable paper
  • As well as water damage
  • And, wind and hail

Find out more

Call our number and talk to one of our agents. Discuss how to get the best Condo Master Policy Insurance at the best price

Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.