| Workers Compensation Insurance Maybe A Necessary Coverage For Condo Associations |
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| Written by Nancy Whittington |
| Saturday, 09 April 2011 01:18 |
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Homeowners and Condo owners share one thing in common: The common areas of their property like building structures, shared utilities, common service or enjoyment area, common hallways and driveways, etc. These jointly owned properties are exposed to property and liability losses for which insurance is very vital for protection. For this reason and other reasons, condominium and homeowners associations are formed to render services in connection with these common areas. Amongst these services are risk management and insurance services.
Homeowners and Condo owners share one thing in common: The common areas of their property like building structures, shared utilities, common service or enjoyment area, common hallways and driveways, etc. These jointly owned properties are exposed to property and liability losses for which insurance is very vital for protection. For this reason and other reasons, condominium and homeowners associations are formed to render services in connection with these common areas. Amongst these services are risk management and insurance services. While each unit owner is legally liable for the property and liability losses that may emerge inside their units, condominium and home associations are charged with dealing with the common areas and for getting insurance policies for the benefit of all participating members. For that reason, condominium associations secure a master policy and schedule each unit owner as a loss payee and additional insured on the master policy, each owner with the same proportion of their ownership compared to the total. Unit owners pay monthly assessment fees to cover managerial and operative overheads of the association including premium payments for the condominium master insurance policy. Depending on the size of the association, a trustworthy management company may be sought to run the association's activities, or some elected members of the association board of directors may oversee these daily functions. Elements Impacting Insurance Premium Rates For Condominium Associations The main factor that impacts the price of property and casualty insurance rates is the characteristics of the buildings associated with the association in terms of the number of units and the construction material used, and history of plumbing/ heating/ electrical updates are very important in determining the insurance rates for the association's master policy. Scope of services retained and managed by the association: Associations that own, control or maintain businesses such as grocery store, sporting and recreation facilities and events such as swimming pools, gymnastic capacities, pleasure places and parks, etc. are more vulnerable to adverse legal actions than smaller condo associations that have different range of activities. When these services/ facilities are furnished, insurance carriers will want to obtain more specifics about the security presented to protect members and visitors from injuries and harm. In larger associations, more risky things may be offered, such as ice skating, baseball parks, and even diving. These activities and facilities can get to much higher risk levels when associations are involved in offering airport facilities, horse trail, bike trail, and stables that may be managed or maintained by the association, and for which the association will be accountable. Other Coverages That Could Be Needed By Condo Associations Workers compensation is a coverage that is necessary if the association recruits people to manage the affairs of the association. Depending on the size and scope of the routines assumed by the association workers comp coverage can range from clerical exposure to too much higher risks such as maintenance people or vehicle operators. Auto liability is also wanted in the event that the association owns their own business vehicles such as service/ maintenance vehicles, snow plowing autos, etc. Umbrella, or excess liability insurance is vital for all condominium associations, especially for medium to larger size condominium association where losses caused by lawsuits against condo association can be sizable. Umbrella will concurrently raise the liability limits on all underlining general liability, auto liability, workers compensation to much higher limits (ie $2 or even $5 million, each occurrence). DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Insurance Navy is a major provider of all personal line including auto insurance Chicago. The agency also provide condo association insurance in Chicago |