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Condo Association Insurance

Condo owner’s associations have unique insurance needs. Owners of each unit own a portion of the building, while certain areas of the building are shared. Condos, just like any other home, face risks like fire, theft and vandalism. Condo associations can also face multiple liability risks that come with managing amenities such as swimming pools, gym equipment and playgrounds.

When faced with perils, we expect the insurance company to be there for us. Unfortunately, though, often insurance companies are quick to take our money but reluctant to help us in our time of need. Contact an insurance lawyer if you are dealing with insurance claims issues. They can help you receive the settlement you need.

Texas Insurance Lawyer

Is your adjuster unwilling to negotiate? Do you believe your claim was unjustly denied? Ms. Ahmed and Ms. LeMaster are seasoned insurance attorneys with more than three decades of combined experience assisting policyholders. Having worked on behalf of insurance companies in the past, LeMaster & Ahmed PLLC is well versed in their tactics.

Call (888) 306-2119 to schedule a consultation. Ms. Ahmed and Ms. LeMaster assist policyholders in Montgomery County, Collin County, Harris County, Dallas County and Galveston County.

Information Center

What Does Condo Association Insurance Cover?

Condo dwellers will typically form a condominium association to oversee the management of the building. It doesn’t matter if the complex has 50 or 500 units; the association is responsible for making building decisions, managing expenses and making repairs. Rather than using standard condo insurance, a condo association will have a master policy.

A master condo policy typically provides coverage for common areas of the complex. This can include damage to hallways, the building, the roof, basement, elevators, boilers and machinery. A condo association’s master insurance policy will typically provide one of the following types of coverage:

  • Bare walls coverage: This insurance policy covers the essential elements of the building such as floors, the roof, walls and elevators. Bare walls coverage only covers the basics of common areas; it does not cover the units.
  • Single entity coverage: Single entity coverage covers all real property in a condominium, including common areas and standard finishes in each unit. Standard finishes commonly covered by this policy include counter tops, appliances and light fixtures. Single entity coverage does not protect a dweller’s personal property, nor does it cover standard finishes if the owner has made personal improvements.
  • All-in coverage: As the name implies, all-in coverage is comprehensive coverage that typically covers all real property in the building and improvements in units. Unit coverage is limited to coverage for standard or upgraded finishes. It will not cover personal property.

No master policy will cover dwellers personal property. A typical stipulation of owning a condo is required personal condo insurance. This coverage protects an owner’s personal property in the event of specific perils like fire and theft.

Lawsuit Protection

A condo association master policy also addresses the potential for lawsuits. The chances of a resident sustaining bodily injury increases if the complex has a spa, fitness center or other shared spaces.

General liability insurance provides broad coverage for accidents occurring at a complex. This can include a delivery person slipping on the sidewalk, visiting grandchildren who are injured at the pool or a resident who is injured in the fitness center. An association can also be sued for damages if the complex fails to provide suitable security and a unit owner or guest is burglarized or attacked.

Most condo association policies provide between $2 million and $ 5 million for general liability coverage to protect from lawsuits in these situations. Unit owners can also purchase personal liability coverage to protect themselves from lawsuits stemming from accidents in their units.

Can I Sue my Insurance Company?

Most policyholders only deal with insurance companies in a time of need. Whether your building has suffered fire damage or a lawsuit, you depend on your insurance provider to be there for you. While the adjuster may seem like a friend; they are not.

Adjusters are sometimes friendly because they want you to feel comfortable revealing information to them. They will then turn around and use the information against your association and deny a claim or offer a low-ball settlement. Some denied claims are justified, but others are in bad faith.

Denying a claim in bad faith is a violation of your policyholder rights and warrants litigation. By suing your provider, you can seek damages for three times the amount of the original claim, attorney fees and any damages deemed reasonable by the court. Contact an insurance lawyer if your condo association is in this situation. An attorney can evaluate your situation and advise you on the best course of action.

Additional Resources

Unfair Settlement Practices | Texas Insurance Code – Visit the Texas Constitution and Statutes website to read the chapter of the insurance code governing unfair settlement practices, also known as bad faith. Read section 541.060 for a full list of bad faith acts and learn about other insurance laws such as misrepresenting policy information and hearing procedures.

Single Entity Coverage | Investopedia – Follow the link provided to learn more about single entity condo coverage. You can gain access to more information about the basics of single entity coverage and what is protected. Investopedia is an online resource striving to help users understand complex financial issues.

Texas Insurance Lawyer

Contact the insurance lawyers at LeMaster & Ahmed PLLC if you are having trouble with your insurance company. Ms. Ahmed and Ms. LeMaster can advise you on how to negotiate with adjusters and represent you in court if necessary. Call us today at (888) 306-2119 to schedule a consultation.

We have offices in The Woodlands and Plano but also assist clients in areas such as Houston, Dallas and Galveston.