Insurance for business condominiums and residential association
Help protect your business and residential property association against risk.
What is insurance for business condos & HOAs?
Insurance for business condominiums and residential associations helps cover both tangible assets (like buildings and common areas) and intangible issues (such as legal claims against board members) related to your property and association.
What does insurance for business condominiums and residential associations cover?
By bringing together the right coverages, this insurance can help safeguard your business condominium or HOA, allowing it to best meet the needs of the association.
Building coverage
Helps cover the building and anything attached to it, like fixtures, flooring and cabinets, as well as any common buildings used by your association
Liability
Helps provide protection against legal liability caused by bodily injury, property damage, personal injury and advertising injury to others
Directors and officers liability
Helps protect members of your association board against claims alleging wrongful acts in carrying out their duties
Backup of sewer and drain
Helps cover damages to building and business personal property from sewer or drain backups. This coverage, automatically provided to HOAs, would need to be purchased for a business condominium
Employee dishonesty
Helps cover certain losses from dishonest acts committed by employees. Associations hiring a property management firm should consider obtaining a fidelity bond
Ordinance and law
Helps cover increased costs for building upgrades required by municipal laws and ordinances
Inflation coverage
Automatically increases insurance coverage for buildings and association personal property to keep pace with inflation
Replacement cost claim settlement
Provides claim payments based on the replacement cost of damaged property, subject to policy conditions
Loss of income and extra expense
Helps cover up to 12 months of lost income due to business operation suspension from an accidental direct physical loss covered by the policy
Coverage in action
What would you do if your business condo or HOA's officers were accused of conflicts of interest or negligence? Liability coverage protects board members against these claims.
Frequently asked questions about insurance for business condominiums and residential associations
The following groups or entities may want to consider this type of insurance:
- Homeowners associations
- Condominiums
- Cooperatives
- Planned unit developments (PUDs)
Who may be covered by insurance for HOA:
- Unitowners
- Volunteers
- Board members
Insurance for business condominiums and HOAs helps cover the association's liability, while unitowners insurance protects the unitowner's liability.
Gather this information and these documents to get a competitive quote:
- Declaration pages from your current insurance policy
- Copy of association bylaws
- Association’s annual gross income
- Property’s age and approximate square footage
- Information about any recent property system replacements or upgrades, including roof, heating and air, electrical, and plumbing
Insurance for business condominiums and HOAs helps provide coverage for the physical property they own, which would include the roofs on the structures they own.
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Prices are based on rating plans that may vary by state. Coverage options are selected by the customer, and availability and eligibility may vary.
This is only a general description of coverages of the available types of business insurance and is not a statement of contract. Details of coverage, limits, or services may not be available for all business and vary in some states. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements. Contact a State Farm agent for more information and a customized quote.
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