Greater Seattle Condo Association Insurance

Building coverage covers the condo building and anything attached to it.  The building limit is based on a replacement cost valuation.  Many HOA insurance policies include agreed value, extended replacement cost, or guaranteed replacement cost, which acts as an important safety net.  

If the HOA experiences a loss that is severe enough to require permits to repair, the local government may require that the building be modified to adhere to current building codes.  Ordinance coverage pays to rebuild (ordinance A), demolish (ordinance B), or upgrade (ordinance C) if it is required by law.   Unless the condo is brand new or recently renovated, we recommend at least 10% ordinance B & C under an HOA policy.    

Crime coverage covers embezzlement of homeowners association funds.  Under condo building insurance, we recommend a crime limit equal or greater than the maximum amount in HOA accounts.  

Income and extra expense coverage covers HOA fees that are uncollectable and any extra expenses associated with a loss that renders condominium units uninhabitable.  Under condo association insurance, we recommend an income and extra expense limit that is based on dues that could be uncollectable after a covered loss.  

Offers insurance coverage if, for example, a toilet, tub or sink overflows and damages the condo building.  Under a master policy, we Recommend a sewer and drain backup limit of at least $50,000 per floor.  

Sprinkler leakage coverage covers damage from sprinklers that leak after an earthquake.  This coverage is offered under a master insurance policy with a deductible that is typically much lower than an earthquake insurance deductible.  

General liability coverage protects the homeowners association financially if held responsible for injuries or property damage.  A general liability limit of at least $1,000,000 is recommended under a master insurance policy.  This would cover the vast majority of losses, and help to prevent a situation where the HOA policy runs out of coverage and the HOA must pay out of pocket.  

Directors and offers coverage covers directors and officers as individuals if they are held responsible for wrongful acts associated with their homeowners association duties.  We can offer broad insurance coverage under our condo building insurance policy other insurers do not, such as: nonemployee discrimination and harassment; employment practices; defense costs outside limits; punitive damages; full prior acts; no exclusions for adequate reserves, noise or failure to insure; defense costs for breach of contract and dishonesty/fraud that is not proven; and crisis management for medical expenses, counseling and extra security measures.  For condo association insurance, a directors and officers limit of at least $1,000,000 is recommended.