Posted on May 17, 2014
Commercial condo building insurance is uniquely designed to provide property and liability protection to condominium associations and communities. Commercial condominium insurance offers specialized coverage to protect the financial interests of an entire community. Whereas each individual condo owner has specific needs as it relates to insuring his or her individual unit, the condo association has the responsibility to obtain adequate insurance coverage for common areas such as hallways, greenbelts, pools and golf courses.
Commercial condominium policies typically combine several types of insurance policies combined into one master policy covering all the insurance needs of the organization. Property and general liability are mainstays of commercial coverage with each featuring the necessary insurance to fully protect the association and property from damage and lawsuits.
Commercial condominium property policy limits are usually much higher than standard property policies. Added coverage is needed for all the buildings, recreational structures such as pools and tennis courts as well as insurance of loss of income and extra expense. Because condo associations have the responsibility for overall property damage, additional property coverage for pollution cleanup, sewer backup, and ordinance of law may be needed to fully insure the property from potential risks. When property is damaged, business income coverage will also pay for business expenses so that bills are covered while repairs or replacements are being made.
Condominium associations face additional risk of lawsuits or claims as they relate to residents and guests on the property. With common areas that include recreational activities such as swimming, golf, tennis and playgrounds, there are plenty of ways accidents can happen. Condo owners will want to make sure high policy limits are in the contract to fully protect the association and overall property from lawsuits.
Crime & Fidelity
Because employees of the condo association work with the residents and general public, having insurance to cover employee dishonesty, forgery, theft and computer fraud is a necessity. Since employees of these companies handle cash payments and confidential information, this insurance coverage will protect the business from embezzlement and potential fraud. Many property owners will also want to have ability to include the property manager or real estate manager in employee dishonesty policies.
Commercial condo buildings face all sorts of risk exposures that can be mitigated by having the right insurance coverage in force. The right insurance broker can assist in taking the guess work out of obtaining the commercial insurance needed so that property owners can rest assured that their business is safe from financial harm.