Condo Association Insurance in Vermont
What is Condo Association Insurance?
Condominium owners own the units they live in and, therefore, usually are responsible for insuring their units themselves. Common areas of condominium complexes, however, aren’t owned by one individual. Thus, the responsibility for insuring them doesn’t normally fall to individuals. Instead, condo associations are typically expected to insure common areas of condominium complexes. This is what condo association insurance, which many insurers in Vermont offer, is for.
Condo association insurance is a form of insurance that’s normally purchased by condominium associations, hence its name. It’s primarily used to insure common areas of condominium complexes, typically providing both property coverage and liability coverage for them. Some of the common areas that a condo association policy might cover include:
- Outside steps, entryways, and foyers
- Elevators, stairwells, and hallways
- Common wall between units, and exterior walls of buildings
- Landscaping, outdoor walkways, and fencing
- Pools, fitness centers, community rooms, and similar amenities
What Kinds of Condominium Association Insurance Policies Are There?
Most condominium association insurance policies that are offered by Vermont insurers fall into one of three categories. All of these categories can provide coverage for common areas like those listed above, but they offer different levels of protection for the items inside individual condo units.
Bare walls-in condominium association policies offer only the most essential coverage for individual condo units. They usually cover the floor, ceiling, and walls of condo units, not including any carpeting, hardwood floors, paint, or wallpaper. Many also include coverage for plumbing and electrical systems, but some don’t. If a condo association in Burlington, VT, for example, purchases a bare walls-in policy, individual condo owners must usually get robust condo insurance policies that cover all of the items in their units.
Single entity condominium association policies offer a little more coverage than bare walls-in policies. Most single entity policies cover the floor, ceiling, and walls of condo units, including any flooring, paint, or wallpaper that’s included in every unit. They also normally include coverage for plumbing and electrical systems, as well as standard features that all units come with. Standard features generally include cabinets, countertops, fireplaces, and other features that all units have. If the same Burlington, VT condo association instead got a single entity policy, its condo owners would likely only need coverage for features they upgraded.
Modified single entity condominium association policies include even more coverage, leaving little for condo owners to insure themselves. These policies often include all of the coverages that are found in single entity policies, along with protection for upgraded features. Upgraded features may include granite countertops, hardwood flooring, tiled showers, and similar amenities. If the condo association went for a modified single entity policy, its condo owners might not need any coverage for their unit. (They would still likely want to purchase condo insurance for its personal property and liability coverages, though.)
Who Pays for Condominium Association Insurance?
Condominium association insurance is usually bought -- and, therefore, paid for -- by condo associations. Associations in Vermont frequently pass on the cost of a policy to condo owners, however, through assessments. Premiums may be evenly divided among condo owners during an annual assessment. If an association has to file a claim and pay a deductible, the deductible can often be divided among owners via a special assessment.
How Can Condo Associations in Vermont Get Condo Association Insurance?
Condo associations in Vermont that would like help reviewing their current insurance or finding new insurance should contact an independent insurance agent. An agent can help an association review its risk exposure and select a condo association insurance policy that meets its needs.