Condo Building Insurance
Guardian Insurance Agency
Protect the building. Protect the community. Protect your investment.
Condo buildings have unique coverage rules, shared property, private units, and association responsibilities. A clear insurance program guards common areas and building systems, aligns unit‑owner responsibilities, and keeps cash flow steady after a loss.
The Four Master Policy Approaches (What’s Covered Where)
- Association Master Policy :The association insures common elements (lobby, halls, elevators, roof, exterior, mechanicals). Unit owners carry separate policies for what’s inside their units (HO‑6). Exact responsibility depends on which “walls‑in” approach is adopted.
- Bare Walls Coverage: (“Studs‑to‑studs”) Association covers structure only: walls, floors, ceilings to the unfinished interior. Unit owners insure fixtures, finishes, and built‑ins (cabinets, countertops, flooring, appliances) under their HO‑6.
- Modified Single Entity Coverage (“All‑in with upgrades”) : Association covers standard finishes and certain improvements/replacements (policy‑specific). Unit owners still cover personal property and any items excluded by the master policy.
- Single Entity Coverage (“Original builder’s finishes”) : Association covers the original, standard finishes as delivered by the builder. Upgrades (e.g., replaced kitchen counters, custom flooring) become the unit owner’s responsibility under HO‑6.
Tip: Always verify your CC&Rs and master policy language what’s “standard,” what’s an “upgrade,” and where “walls‑in” begins so unit owners buy the right HO‑6 with building additions & alterations, personal property, loss of use, and loss assessment coverage.
What the Association Typically Insures (Master Policy)
- Property (Building & Common Elements): Structure, roof, exterior, elevators, mechanicals, pools/amenities, garages.
- Business Income / Loss of Assessments (Association): Keep operations funded after a covered loss.
- Ordinance or Law: Increased costs to meet current codes after a rebuild.
- Equipment Breakdown (Boiler & Machinery): Elevators, pumps, HVAC, electrical panels.
- General Liability: Bodily injury/property damage in common areas, premises exposures.
- Directors & Officers (D&O): Alleged wrongful acts in governance (board decisions).
- Crime / Fidelity Bond: Protect association funds from theft; often required.
- Umbrella / Excess Liability: Higher limits over GL/D&O/Employers Liability.
- Workers’ Compensation / EPLI: If the association has employees; EPLI for employment claims.
- Flood / Earthquake (separate forms): Critical in higher‑risk zones; standard property often excludes these perils.
What Unit Owners Usually Insure (HO‑6)
- Interior “walls‑in” items not covered by the master policy (varies by the approach above).
- Personal property (furniture, electronics, clothing).
- Additional living expenses / loss of use during repairs.
- Personal liability for incidents inside the unit.
- Loss assessment for shared deductibles or uncovered association costs (choose limits thoughtfully).
Why clarity matters (and saves money)
- Prevents coverage gaps between master and unit policies.
- Speeds claims handling and rebuild decisions after a loss.
- Sets proper deductibles and loss assessment limits so owners aren’t surprised.
- Aligns contractor scopes and reserve planning with real insurance language.
What affects pricing for the master policy
- Building age & construction, fire protection, sprinklers.
- Common area amenities (pools, gyms, rooftop decks, garages).
- Loss history and risk controls (lighting, cameras, access control).
- Selected limits, deductibles, endorsements (ordinance or law, breakdown, flood/quake).
- Number of units and occupancy profile (owner‑occupied vs. rentals).
Practical steps for boards & managers
- Publish a coverage summary (bare walls vs. single entity vs. modified) to owners.
- Require proof of owner HO‑6 with additions/alterations and loss assessment limits.
- Maintain vendor COIs (additional insured, primary & non‑contributory, waiver of subrogation) for contractors.
- Inspect and service elevators, pumps, HVAC, sprinklers; keep PM logs.
- Plan reserves with ordinance or law and deductible strategy in mind.
- Consider flood/earthquake feasibility if exposure warrants.
The Guardian way
We review your CC&Rs, bylaws, and historical claims, confirm your walls‑in approach, then build a master policy with the right property limits, ordinance or law, equipment breakdown, liability, D&O, crime/fidelity, and umbrella, plus optional flood/earthquake coverage. We also provide a unit owner HO‑6 guidance sheet so owners can buy complementary coverage (including loss assessment).
Guardian Insurance Agency — Proper protection—prior to peril.
Call
+1 888 388 2864
Visit
1818 E 1st Street #530 Santa Ana CA 92705