Is It Mandatory For Condo Associations To Maintain An Insurance Policy

Let’s face it, not everyone wants to think about insurance, yet it’s very important. It helps you sleep like a baby knowing that you are covered. A condo association’s insurance policy can cover the structure of your building as well as the common areas. However, the policy might or might not extend to the areas inside the unit, and most importantly, the coverage is dependent on the laws of your state.

If you’ve been wondering if it’s mandatory for condo associations to maintain an insurance policy, this article is meant for you and we will answer that question and clear your doubts.

The role of the condo association

Condo unit owners should form a condo owner’s association that oversees the management of the building. The association plays a significant role in making decisions for the building, making repairs and managing expenses, and ensuring that your property is insured in case of any loss. Condo owners’ associations set up bylaws or rules that govern the complex.


The rules highlight the requirements for condominium association insurance, which include requirements for coverage such as coverage limits, deductibles, and type of coverage that the association should buy. The condominium association insurance can insure the unit owner’s shared risks and when relocating to your new home, it’s important to understand the legal rights for condo owners in florida

Property coverage for condo associations

The association master policy covers common areas of a condominium complex, such as the hallway, sidewalks, elevators, basements roofs, and other building equipment like machinery and boilers. As a unit owner, you’ll take full responsibility to insure anything within the four walls of your individual unit. Condo association insurance offers the following types of building coverage;

· Bare walls coverage – Covers basic building elements like roof, walls, elevators, and floors. Unit owners should get coverage for items like bathroom, countertops, appliances, flooring, cabinets, carpeting, bathroom and kitchen fixtures, wall covering, and any other item in the unit


· Single entity coverage – Covers the basic elements of a building and standard finishes in every unit apart from the personal property of the unit’s owner

· Modified single entity/all-in coverage – Insures installations, fixtures or improvements/additions within the interior surface of a perimeter wall, ceiling and floor of an individual unit

Bottom line

Condominium insurance can cover a wide range of contingencies. We all want to live in a safe and well maintained place and therefore, it is mandatory for condo associations to maintain an insurance policy.