Insurance built for condo associations and their boards

The master policy is the foundation. It covers the building envelope and common areas — hallways, stairwells, elevators, parking areas, pools — against damage from fire, wind, and other covered causes. The four structures define how deep that coverage goes into each unit:

• Bare walls: The association covers walls, floors, and ceilings only. Unit owners cover everything inside.
• Modified single entity: Extends to original fixtures and appliances, but not upgrades or personal property.
• Single entity: Covers standard finishes like fitted kitchens, but owner upgrades may fall outside the policy.
• Full single entity (all-in): Covers original and upgraded fixtures, stopping at personal property.

Choosing the wrong structure — or failing to communicate it clearly to unit owners — is one of the most common and costly gaps Bittick sees in association portfolios.

Commercial property coverage pays to repair or rebuild after a covered loss and can include the association's own personal property and lost income if the building becomes temporarily uninhabitable. General liability covers the association when a third party is injured or their property is damaged on association-controlled ground. A visitor who falls in a parking lot, a contractor who claims property damage from work you directed, a neighbor whose fence was damaged by a tree in the common area — these are the kinds of claims that land on the association's general liability policy. Legal defense costs are included, which matters because even meritless lawsuits cost money to fight.

Board members make decisions: budget approvals, vendor contracts, rule enforcement, special assessments. Those decisions can generate lawsuits from unhappy unit owners, even when the board acted in good faith. Directors and officers liability insurance covers the legal costs to defend board members against covered claims and can fund any resulting judgments. Without it, individual board members may be personally exposed. This is one of the coverages Bittick most consistently flags as missing or underwritten when reviewing an association's existing program.

Associations collect dues, maintain reserve funds, and often employ or contract property managers who have access to those accounts. Crime and fidelity bond coverage protects against employee dishonesty, forgery, computer fraud, and fund theft by a board member or management firm. Cyber liability handles the other end of the digital risk: if resident data (payment information, personal records) is breached and the association is found liable, cyber coverage pays the fees, notification costs, and any resulting lawsuits. As associations shift more operations online, this exposure is growing.

Systems breakdown coverage pays to repair or replace mechanical and electrical equipment — HVAC systems, elevator motors, boilers — after a mechanical failure. Standard property policies typically exclude mechanical breakdown, so this fills a real gap. A commercial umbrella policy sits above the general liability, D&O, auto liability, and employers liability policies to provide additional limits when a single large loss exhausts the underlying policy. Environmental coverage addresses a specific exclusion in most commercial property policies: pollutant cleanup. A leaking underground fuel tank, for example, generates cleanup costs and potential third-party lawsuits that the base policy will not touch.