Lewis-Chester Associates, Inc., is a leading writer of insurance for condominium associations and condominium unit owners. We have been doing this for many years and have learned where the “gaps” in condominium coverage are! Little attention seems to be given to certain personal exposures, or additional premium charged to include this protection.
Please consider just the few examples below.
If you are involved in a separation/divorce situation, a no-cost coverage amendment may be necessary to extend your policy’s personal liability coverages to both spouses.
(2) Babysitting, Snow Shoveling, Etc.
Coverage for your liability arising out of certain “for profit” activities — even if done by your children or other household residents — may not be covered in the normal Homeowners’ or Condominium Unit Owners’ policy, unless such coverage is specifically added.
The additional charge is typically less than $5.00 per year, and can extend to the following representative situations: babysitting, snow shoveling, lawn mowing, leaf raking, sales of homemade foods, garage sales, certain “fellow employee” damage and injuries, etc.
(3) Condominium Loss Assessment
Members of a condominium association may be assessed additional fees by their board of directors for unexpected expenses that exceed the association’s operating budget or funds. These additional expenses could be due to uninsured losses, insurance deductibles, losses in excess of the limits of insurance, pollution liability, etc. As a unit owner, you may be assessed for your portion of these expenses, which could be thousands of dollars.
If such assessments are necessary due to accidental loss that should be covered by the condominium association’s commercial insurance policy and is not, you could be covered if you have a certain coverage part added to your Condominium Unit Owners’ policy. This coverage typically costs only $.58 per $1,000.00 of coverage per year!
This “missing” coverage would also respond for liability claims, including directors’ and officers’ liability respecting your membership on your own condominium association’s board of directors, providing you are in an elected position and you serve without remuneration.