COVERAGE OVERVIEW. OPRC SMALL CONDOMINIUM MANAGEMENT PROGRAM. CONDOMINIUM ASSOCIATION. INSURANCE ...
CONDOMINIUM ASSOCIATION INSURANCE C O V E R A G E O V E RV I E W OPRC SMALL CONDOMINIUM MANAGEMENT PROGRAM
IS YOUR INSURANCE COVERAGE SUFFICIENT? Do you understand what coverage your association requires?
COMMERCIAL PROPERTY Property Insurance Coverage: • Buildings / Real Property • Business Personal Property • Business income • Building Ordinance or Law • Equipment Breakdown • Sewer or Drain Back Up • Flood • Earthquake • Enhancement Endorsements
General Liability covers damages the association is legally obligated to pay due to bodily injury or property damage resulting from the association's negligence. Medical Payments Coverage provides a limited amount coverage for bodily injury caused by an accident regardless of fault.
CRIME INSURANCE Crime Insurance Coverage: • Fidelity/Employee Dishonesty – How much do you need? • Forgery or Alteration • Money and Securities – On and off premises.
DIRECTORS AND OFFICER’S LIABILITY This is an errors and omissions insurance coverage for claims made against the association regarding directors and officers alleged wrongful or negligent actions or inactions.
COMMERCIAL AUTO Commercial Auto Coverage: • Even if the association does not own any automobiles, it could be at risk for an auto related claim. • Automobile Liability is excluded from the general liability policy unless hired and no-owned auto liability coverage is purchased. • $1 Mil of hired and non-owned auto liability usually costs less than $200 per year.
WORKERS COMPENSATION Workers Comp Coverage: • Part one of this insurance policy provides coverage to an injured employee for medical payments, lost income and permanent or temporary disability. • Part two provides coverage to the association for lawsuits alleging negligence causing a work related injury. • Injured uninsured subcontractors could be your responsibility.
COMMERCIAL UMBRELLA Umbrella Liability Insurance: • Additional liability limits are available through an umbrella policy. This policy extends over existing general liability, auto liability, D&O liability and employers liability policies. • In today’s legal environment, $1 Mil of insurance coverage may not be enough.
ILLINOIS CONDOMINIUM PROPERTY ACT • Property insurance including full replacement cost coverage for building including coverage for the increased costs of construction due to building code requirements. • General liability insurance with a limit of no less than $1 Mil.
• Directors & Officers Liability Insurance • Employee Dishonesty Insurance with a limit no less than the total of the association funds and it’s reserves.
• Contractors and vendors (except public utilities) doing business with a condominium association under contracts exceeding $10,000 per year must provide certificates of insurance naming the association, it’s boards of directors and it’s managing agent as additional insured parties. Source: IL Condo Property Act, 605/12 Insurance
ASSOCIATION VS. UNIT OWNER Association Responsibility
Unit Owner Responsibility
• Common elements including fixtures located within the unfinished interior surfaces of the perimeter walls, floors and ceilings of the individual units initially installed by the developer.
• Floor, wall and ceiling coverings. “Improvements and betterments” meaning all decorating, fixtures and furnishing installed or added to and located within the boundaries of the unit, including electrical fixtures, appliances, air conditioning and heating equipment, water heaters or built-in cabinets installed by unit owners.
Source: IL Condo Property Act, 605/12 Insurance The above reflects responsibilities as defined by the IL Condo Act. Responsibilities may vary depending on how they are defined in the association’s by-laws.