Condo Association Insurance in Minnesota

Condo Association Insurance is designed for condominium associations, HOAs, boards, and property managers. The risks involved can be very different from those faced by an ordinary household or general business, especially when common-area property, water losses, liability claims, board decisions, employee dishonesty, and building systems are part of the exposure.

Coverage can be tailored to the individual situation. Maverick Risk Partners can help clients in Minnesota compare available options from multiple insurance companies and review differences in coverage, limits, deductibles, and eligibility.

Why Consider Condo Association Insurance?

A condominium association is responsible for property and liabilities that individual unit-owner policies generally do not insure. The association’s governing documents, master deed, bylaws, property values, deductibles, and responsibilities for building components should guide the insurance program.

Insurance can help transfer some of these financial risks, but no policy covers every situation. The appropriate combination of coverage depends on the specific details of the risk and the insurance companies willing to consider it.

Condo Association Insurance Coverage Options

The coverage that may be appropriate varies by client. Depending on the situation, an insurance program may include several different policies or endorsements.

Master Property Insurance

A master property policy may insure association-owned buildings, common elements, and other property according to the association’s governing documents and policy terms.

General Liability Insurance

General liability insurance may help protect against covered third-party bodily injury and property damage claims. It can be especially important when customers, vendors, or members of the public are exposed to your operations.

Directors & Officers Liability Insurance

Directors and officers liability insurance may help protect board members, officers, and the organization against certain claims alleging wrongful acts in the management of the organization.

Crime and Employee Dishonesty Coverage

Crime coverage may help protect against certain losses involving theft, forgery, fraud, or employee dishonesty, depending on the policy and endorsements selected.

Equipment Breakdown Coverage

Equipment breakdown coverage may help with certain sudden mechanical or electrical failures involving covered equipment. It can be valuable for businesses that depend on specialized machinery to operate.

Umbrella or Excess Liability Insurance

Umbrella or excess liability insurance may provide additional limits above certain underlying liability policies when a covered claim exceeds those underlying limits.

Condo Association Insurance FAQs

What does a condo association master policy cover?

The master policy generally covers association-owned property and common-area liability, but the extent of building coverage depends on the governing documents and policy form.

What is the difference between bare-walls and all-in condo coverage?

These terms describe how much of the individual unit’s building components are insured by the association versus the unit owner. Governing documents and policy wording should be reviewed together.

Does condo association insurance cover special assessments?

The association policy itself does not eliminate the possibility of assessments. Unit owners may have loss-assessment coverage for certain qualifying assessments under their HO-6 policies.

Does a condo association need directors and officers insurance?

D&O coverage can be important for claims alleging wrongful decisions, governance errors, or breaches of duty by board members or the association.