Condo Association Insurance in Vermont

What is Condo Association Insurance?

Condo associations are normally responsible for insuring the common areas in their condo complexes. For instance, it usually falls to a condo association to provide property and liability coverage for a condo building’s entryway, elevators, stairwells and hallways. Condo association insurance provides the coverages that condo associations in Vermont need for these and other common areas on their complexes.

Condo association insurance is a specialized type of insurance that’s specifically designed to meet the needs of condo associations. It’s primarily used to insure condo complexes' common areas. In addition to those mentioned above, these can include:

  • Exterior walkways and steps
  • Lawns, other landscaping, and fencing
  • Pools, community centers, and other amenities

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Usually, a condo policy will provide both liability and property coverage for the areas it insures. Liability coverage may provide protection if a condo owner or guest is injured in a common area and tries to hold the condo association responsible for their injuries. Property coverage helps to protect covered common areas from perils like fire, vandalism and wind damage. (As is the case with most insurance coverages, the exact protections that these coverages provide depend on the terms and conditions of the policy that provides them.)

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Who Pays Condominium Association Insurance Policies’ Premiums?

Since condominium association insurance policies are normally bought by condominium associations, associations typically pay the premiums associated with their policies. Many condominium associations in Vermont, however, pass on these costs to condo owners through assessments. The cost of a condominium association insurance policy can often be divided equally among condo owners and added onto an annual assessment.

Similarly, deductibles for claims are also frequently paid by condominium associations but passed onto condo owners through assessments. Rather than applying a deductible payment to an annual assessment that’s only assessed at a certain time of year, condominium associations might use a special assessment that can be placed at any time -- including when a claim is made.

Any condominium associations that intend to pass premium payments and deductible costs onto condo owners should share with condo owners what these costs could be. Letting condo owners know what they might be assessed gives them a chance to budget accordingly.

What Kinds of Condo Association Policies Do Insurers Offer?

Insurers generally offer three different kinds of condo association policies. They are:

  • Bare Walls-in Policies, which are affordable but normally only cover a condo’s structure (i.e. its walls, ceilings and floors)
  • Single Entity Policies, which normally also provide coverage for standard features (e.g. bathroom vanities and lighting fixtures included in every unit)
  • Modified Single Entity Policies, which normally offer robust coverage for a condo’s structure, standard features and upgraded features (e.g. granite countertops a condo owner had put in)

Condo associations in Vermont should also let condo owners know what kind of policy the association purchases, as this affects what coverages condo owners should look for in their own condo insurance policies. They’ll likely want to purchase insurance for anything that the association’s policy doesn't cover.

How Can Vermont Condo Associations Get Quotes for Condo Association Insurance?

Vermont condo associations that need help finding condo association insurance should have a board or committee member contact an independent insurance agent in the area. An independent agent can work with a condo association’s leadership to select appropriate coverages and get quotes for policies that provide those coverages. There are qualified independent agents throughout the state that are ready to help you find the best coverage & value.

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