One of the most confusing topics for condominium owners and board members is the issue of property insurance. More particularly is the question of what parts of the condominium property are the association required to insure versus what each owner must insure. This confusion arises as there are three types of condominium insurance, which are:
- Bare wall
- Original installations, also known as single entity
- All-in or all-inclusive
Condominium boards often do not realize their association is required, whether by statute or by language in their governing documents (e.g. declaration, bylaws, CCRs – covenants, conditions, and restrictions), to possess original installations or all-in property casualty insurance that cover the entire condominium property, including the units. This means the association is responsible for replacing cupboards and other unit fixtures that are damaged by a kitchen fire, a burst waterline, or other casualty loss, but the owner is responsible for replacing a cupboard door that falls off the hinges after opening and closing the cupboard for twenty years. Every week, several of our clients learn of this oddity while seeking advice from our office on another topic.
If you are a Kaman & Cusimano client, consider scheduling a conference call with our Operations Department to learn about your condominium association’s casualty insurance requirements, which will allow you to verify whether your coverage is appropriate and whether you should consider pursuing an insurance amendment.
Kaman & Cusimano is exclusively dedicated to representing condominium and homeowner associations, with offices currently in Kentucky, Ohio, Tennessee, and Wisconsin. Under our Community Protection Program, we provide continued support, with access to free samples, newsletters, live and recorded seminars, and general phone calls.
If your association is interested in learning more about our services and how we can help, please click the following link: Request for Proposal and type “Condo Insurance” in the subject field.
