Condo Master Policy in Maine
Allen/Freeman/McDonnell Agency
Condo Master Policy
- What Is It?
- Who Needs It?
- Coverages Offered
A condo master policy provides specialized coverage for condominium associations. The included coverages usually extend to both property and liability risks that common areas present.
Most associations of Maine condominium complexes ought to have condo insurance. Not insuring common areas can result in major losses, and this tends to be the most appropriate insurance for associations
- Exterior, shared and other common walls
- Entryways, hallways, elevators, stairwells and other passages
- Pools, business centers, fitness centers, community rooms and other amenities
What is a condo master policy?
The responsibility for insuring condominium complexes’ common areas usually falls to the associations of these complexes. A common way for condominium associations in Maine to procure the insurance they need is by purchasing a condo master policy.
A condo master policy provides specialized coverage for condominium associations. The included coverages usually extend to both property and liability risks that common areas present.
What condominium associations in Maine should carry condo association insurance?
Most associations of Maine condominium complexes ought to have condo insurance. Not insuring common areas can result in major losses, and this tends to be the most appropriate insurance for associations.
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What areas does condo association insurance extend coverage to?
What areas a condo association insurance policy covers depends on the specific terms of a policy. Policies frequently make coverage for the following areas available:
- Exterior, shared and other common walls
- Entryways, hallways, elevators, stairwells and other passages
- Pools, business centers, fitness centers, community rooms and other amenities
- Landscaping sheds, utility rooms and other maintenances areas
- Landscaping, fences, walkways, greens and other exterior features
Coverage for other types of common areas is also generally available.
What are the differences between bare walls-in, single entity and all-in coverage?
Condo association policies normally fall into one of three categories, each of which typically provides a different level of protection. The categories are:
- Bare Walls-In: Typically only covers the most basic features in units, often limiting coverage to walls, electrical and plumbing
- Single Entity: Typically cover basic features, often including standard items that are included in unit build-outs
- All-In: Typically covers many features, often including both standard and upgraded items in units
All-in coverage normally provides the most extensive protection, and even covers many items that individual owners are frequently expected to insure themselves. All-in is also known as modified single entity.
Which of these categories condo associations shop for policies within is up to each individual association. An insurance agent who specializes in these policies can help associations decide how much coverage they want in a policy, and then compare policies with the chosen category.
How much do condo master policies cost?
The premiums charged for condo master policies are based on many factors, and they thus vary significantly. A few details that frequently impact cost are:
- Location of a complex
- Number of buildings
- Size of buildings
- Common areas
- Coverages selected
Premiums are normally spread across all unit owners over the span of 12 months, which generally makes them affordable. Premiums certainly tend to be less than what each unit owner might have to pay if there’s a major claim that results in a special assessment.
What can associations do to save on condo master policies?
One of the most effective ways to save on condo master policies is simply to compare different policy options with an independent insurance agent. Independent agents aren’t tied to any single insurance company, and can thus show associations from multiple insurers.
Other ways to save include changing the type of policy chosen (e.g. selecting a bare walls-in policy), increasing the deductible of a policy, and working with an agent to find any available discounts.
How can condo associations in Maine obtain a condo master policy?
For help insuring a condominium complex that’s located in Maine, contact Allen/Freeman/McDonnell Agency. Our independent insurance agents will work closely with your association’s board to determine which coverages, deductibles and limits are appropriate. We can show your board several policies that meet the stipulated terms, and then discuss the options together to determine which condo master policy is best for your complex
