INSURANCE FOR CONDOMINIUM ASSOCIATIONS
Condo Association Insurance in Michigan
Coverage for Shared Property, Board Decisions, and Association Obligations
A condominium association’s master policy must align with governing documents, building values, deductibles, common elements, board responsibilities, and the boundaries between association and unit-owner coverage. We help Michigan boards understand those moving parts before a loss exposes a gap.
Building Valuation
Ordinance and Law
Directors and Officers
Crime and Fidelity
Condo Association Insurance Begins With the Documents and the Property
The declaration, bylaws, insurance provisions, maintenance obligations, and loss-assessment language help determine what the association must insure. The master policy should then be compared with replacement-cost estimates, appraisal information, construction type, roof and mechanical updates, water-loss history, deductibles, and unit boundaries.
A complete review may include commercial property, general liability, directors and officers liability, crime or fidelity, equipment breakdown, cyber, workers’ compensation, hired and non-owned auto, umbrella, and ordinance-or-law coverage.
Buildings, Common Elements, and Valuation
We compare the policy’s property description with the documents and current replacement-cost information. Coinsurance, blanket versus scheduled limits, appraisal clauses, water deductibles, roofs, fences, signs, and detached structures all deserve attention.
Ordinance, Law, and Older Construction
A covered loss can trigger current building codes that increase demolition, undamaged-portion, and increased-construction costs. Ordinance-or-law limits should reflect the age, construction, and possible code exposure of the property.
Board Liability, Crime, and Cyber
Directors and officers coverage can address certain claims alleging wrongful board decisions. Crime or fidelity coverage can protect association funds, while cyber coverage can respond to data incidents, fraudulent transfers, and other digital risks subject to policy terms.
Equipment Breakdown and Business Income
Boilers, pumps, electrical systems, elevators, HVAC, and other machinery can create repair and income exposures. Equipment-breakdown exclusions, utility-service terms, business-income triggers, and contractor access should be evaluated—not assumed.
Local Insurance Guidance for Michigan Condo Associations
Customers First Insurance Group works from Clear Creek Plaza in Chesterfield and serves New Baltimore, Macomb County, Metro Detroit, and businesses throughout Michigan. Owner Michael Vereecke has worked in insurance since 2009 and holds the Commercial Lines Coverage Specialist (CLCS) designation.
We help boards, property managers, and association professionals translate documents and property details into an organized insurance submission. We also explain material differences to decision-makers in plain language, including deductibles, valuation, exclusions, defense costs, water limitations, equipment breakdown, and how unit owners may be affected.
Condo Association Insurance Questions
What does a condo association master policy cover?
It commonly covers association-owned buildings or common elements, general liability, and other risks selected by the board. Exactly where association coverage ends and unit-owner responsibility begins depends on the governing documents and policy wording.
How should a condo association choose its property limit?
The limit should be supported by a current replacement-cost estimate or appraisal and reflect the property the association is obligated to insure. Market value, taxable value, and the outstanding mortgage are not reliable substitutes for reconstruction cost.
Why does a condo association need directors and officers coverage?
Board members can face allegations involving governance, elections, enforcement, contracts, discrimination, records, or financial decisions. D&O coverage may provide defense and indemnity for covered wrongful acts, subject to exclusions and whether defense costs reduce the limit.
Does equipment-breakdown coverage replace property insurance?
No. It addresses certain accidental mechanical, electrical, or pressure-system failures that may be excluded from ordinary property coverage. Its business-income and property-damage terms should be coordinated with the master property policy.