Pools, hot tubs, saunas and gyms are big-ticket, high-demand amenities. They add value and enjoyment to properties without question—but they also come with major considerations when it comes to insurance coverage.
A condominium association’s insurance protects the condominium building and commonly owned assets, as well as offering liability assurance for the association, but when it comes to potential high-risk amenities like the ones mentioned above, basic liability coverage sometimes just doesn’t do the trick. That's why supplemental or additional insurance is most likely necessary to cover the potential hazards that come with these deluxe amenities.
According to Karyl Dicker Foray, CIRMS, CIRS for Rosenthal Brothers, Inc., liability policies can include coverage for various items such as a slip-and-fall exposure, products liability (if someone should become ill as a result of eating tainted food at an association sponsored event, for example), host-liquor liability and medical payments to guests of the association and its unit owners.
“A condominium association provides insurance for the outside walls of habitational buildings, plus common areas (such as grass and walkways) surrounding the buildings,” she says. “Coverage should also be included for a clubhouse, gazebo, pool, storage areas, parking facilities, tennis courts and any other areas owned by the association.”
Generally the amenities, also known as the common elements, of a condo will be defined in the building or association's offering plan, condo declaration, and sales brochures. In a cooperative apartment, they're defined in the building's occupancy agreement or proprietary lease.