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🏢 '''Condominium association''' is the governing body of a condominium property that collectively manages common areas, shared infrastructure, and — critically for the insurance industry — the [[Definition:Property insurance | property insurance]] and [[Definition:Liability insurance | liability coverage]] required to protect the building, its common elements, and the association's legal obligations. In insurance terms, condominium associations occupy a distinctive position because they represent a form of shared ownership where the boundary between what the association insures and what individual unit owners must cover is governed by the association's master deed, bylaws, and applicable state or provincial law. Insurers underwriting condominium risks must navigate these legal structures carefully to avoid gaps or overlaps in coverage.

🔧 A condominium association typically purchases a [[Definition:Master policy | master policy]] — sometimes called a blanket or association policy — that covers the building's structure, common areas (lobbies, elevators, pools, parking garages), and the association's [[Definition:General liability insurance | general liability]] exposure. The scope of what this master policy covers depends on whether the association's governing documents follow a "bare walls" approach, covering only the structural shell, or an "all-in" approach that extends to fixtures, installations, and improvements within individual units. This distinction directly shapes what individual unit owners need from their own [[Definition:HO-6 policy | condominium unit-owner policies]] (known as HO-6 policies in the U.S. market). Beyond property and liability coverage, associations frequently carry [[Definition:Directors and officers liability insurance (D&O) | directors and officers liability]], [[Definition:Fidelity bond | fidelity bonds]] to protect against employee or board-member dishonesty, and [[Definition:Umbrella insurance | umbrella policies]] for catastrophic liability scenarios. In markets outside the United States — including Canada, parts of Southeast Asia, and Australia — analogous structures exist under terms like strata corporation or owners' corporation, each with its own regulatory and insurance requirements.

🏠 From an [[Definition:Underwriting | underwriting]] perspective, condominium associations present concentrated [[Definition:Exposure (insurance) | exposures]] that demand careful evaluation. A single building can house hundreds of units, creating significant [[Definition:Aggregation risk | aggregation risk]] for [[Definition:Catastrophe insurance | catastrophe perils]] such as hurricanes, earthquakes, or wildfire — particularly in coastal or seismically active regions. [[Definition:Loss history | Loss history]], building age, construction quality, and the association's maintenance practices all factor into [[Definition:Risk assessment | risk assessment]] and [[Definition:Premium | pricing]]. Disputes over whether a loss falls under the master policy or the unit owner's policy are among the most common [[Definition:Coverage dispute | coverage disputes]] in residential insurance, making clear policy language and coordination between the association's [[Definition:Insurance broker | broker]] and individual unit owners essential. For insurers, this market segment represents a substantial book of business with unique risk characteristics that require specialized expertise in both property valuation and the legal nuances of shared-ownership structures.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Master policy]]
* [[Definition:Property insurance]]
* [[Definition:General liability insurance]]
* [[Definition:HO-6 policy]]
* [[Definition:Directors and officers liability insurance (D&O)]]
* [[Definition:Aggregation risk]]
{{Div col end}}

Definition:Condominium association - Revision history

PlumBot: Bot: Creating new article from JSON