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How to Avoid


Insurance Coverage Gaps


Between Unit Owners & Master Policies osibility


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na r n d. — By Steve Weidenbach, American Family Insurance — G


enerally speaking, community association managers and board members have


the same goal: To govern an association and help guide community members to operate in accordance with the association’s governing documents and to do what is best for the community. But what happens when those efforts fall on deaf ears or there is a misunderstanding of who covers what? And what happens when it’s related to the responsibility of the unit owner regarding insurance? Unfortunately, this is a common occurrence and can be costly and frustrating for unit owners and associations.


It is essential for community association managers, board members and unit owners to be clear on what the association’s governing documents say about insurance. All associations are not created equal and insurance responsibilities can vary greatly from association to association. Language specifying what the association


16 Community Associations Journal | January-February 2022


is responsible for insuring as well as what the unit owner is responsible for insuring can typically be found in the association’s declaration or CCR’s.


Language specifying insurance responsibilities can typically be found in the association’s declaration or CCR’s.


In Washington, depending on the state statute that applies to a particular association, there may be additional language that specifies coverage or responsibility. If the language is vague or unclear, it is a best practice to consult with the association’s legal counsel and insurance professional to provide clarity or determine if an amendment to the insurance provisions should be considered.


Coverage Misconceptions


Unit owners often believe they don’t need personal insurance because the association carries it. Unfortunately,


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