The Association works closely with the master insurer of the Association to deepen the understanding of how owners, landlords, tenants, guests, and contractors affect the Association’s liability. The ultimate goal of the Association is to effectively reduce common liability and thereby decrease common expenses. The information gathered is passed onto the owners and tenants via this page. Due to the complexity of insurance in condominium ownership, the Association provides a summary guideline on the various facets of insurance coverage.

PROVISO

• This information does not replace the advice of your insurance professional who can provide further details and understanding.
• This information is by no means exhaustive and is meant only as a guide.
• It is advisable for owners and tenants to provide the by-laws to their insurance professional when purchasing a policy. All policies must be written in accordance with the provisions of the by-laws. This will allow the insurance provider a full understanding of what type and extent of coverage may be required, as well as desired.

MAPLEWOOD MASTER INSURANCE POLICY

As per condominium by-laws, the Association must acquire and maintain hazard and liability insurance coverage in order to protect common property as well as all aspects of the operations. In the master policy:

a. Owners are not covered for their personal property and dwelling (all that is deeded to an owner). For this reason, owners are responsible for acquiring and maintaining their own insurance to cover such matters.

b. Owners are also not covered for personal property that is housed on the common property (vehicles, etc.,).  For this reason, owners are responsible for acquiring and maintaining their own insurance to cover such matters.

c. Guests (family, friend, visitor, hired representative, contracting professional, realtor, etc.,) are considered Third Party entities and are not covered in any manner, hence they raise the liability to the Association. For this reason, the Association requires proof of insurance for certain guest categories, such as hired contracting professionals.

d. Tenants are considered Third Party entities and are not covered in any manner, hence they raise the liability to the Association.  For this reason, the Association requires proof of insurance.

CONTRACTORS

A contractor is a person, persons, or company that is hired by the Association, an owner, or a tenant. Contractor professionals are considered Third Party entities, raise the level of liability to the Association, hence require proof of insurance before coming onto the property.  In general, contractors should have coverage for:

a. Property Damage/Destruction: This coverage is for damages or destruction that may be caused to others’ personal and Association property, as well their own, while in the conduct of work.

b. Injury to Others: This coverage is for physical injury or death that may be caused to others on the property while in the conduct of work.

c. Injury to Themselves and Employees: This is for coverage of physical and mental injury that the contractor him/herself, and/or employees and/or persons in his/her charge, may suffer while in the conduct of, and as a result of, work on the property.

 HOME OWNER INSURANCE POLICY

An owner is responsible for acquiring and maintaining insurance and such a policy is typically referred to as a Homeowner’s Insurance Policy.  Owners should acquire and maintain a Homeowner Insurance Policy that includes at least the following coverage:

a. Personal Property & Renovations: It is advisable to create and maintain an updated list of all your valuables, along with pictures, and also record a video of the interior of the unit. Take stock of all that you wish to insure (clothing, furniture, jewelry, collectibles, paintings, electronics, office items, computer, books, household items, kitchen, garden equipment, appliances, etc.,) and estimate the total cost of replacement for unit contents. The total cost of replacement of personal contents, as well as the value of renovations, is the value that should be insured. Please be advised that, in the event that Maplewood is re-built after partial or total destruction, the Association will not restore your interior to the level of your renovation. Instead, your homeowner policy will provide additional funding to restore your current renovations. All personal property that is housed on common property, such as vehicles, should also be insured.

b. Medical Liability (if persons hurt themselves inside your unit): This is to insure the owner in the event that someone other than the owner injures themselves inside the respective unit (family member, friend, guest, casual visitor, contractor, representatives, realtor, etc.,).

c. Personal & General Liability (if you damage the unit or other’s property, and injure others): This is to insure the owner against his/her own misconduct and negligence towards (1) the unit itself, and (2) against damages sustained by others and their property. Hence, this is for coverage if an owner causes damages and destruction to his/her own personal property and unit dwelling. It is also for coverage if an owner causes damages and destruction to others physically, and their property. As an example, an owner may cause fire to the unit that spreads to other units, thus touching upon other’s property as well as that of the Association (common property elements). This event, and others similar to it, would potentially set in motion a host of liability issues. While there is no required minimum, it is advised to carry $500,000 of liability.

d. Loss of Use: This is to insure the owner for living expenses not covered by the Association’s Master Insurance in event the building is rendered uninhabitable by gross damages.

LANDLORD INSURANCE POLICY

An owner who is leasing is responsible for acquiring and maintaining insurance for the duration of the lease term, and such a policy is typically referred to as a Landlord Insurance Policy.  Owners should acquire and maintain a landlord Insurance Policy that includes at least the following coverage:

a. Personal Property: Coverage for appliances, personal objects, furniture, and items necessary for renting.

b. Business Insurance: All else not covered under (a) Personal Property.

c. Medical Liability (if persons hurt themselves inside your unit): This is to insure the owner in the event that the tenants or their guests injure themselves inside the respective unit.

d. General Liability (if your tenant damages the unit or other’s property, and injures others): This is to insure the owner against the tenant’s misconduct and negligence towards (1) the unit itself, and (2) against damages sustained by others and their property. Hence, this is for coverage if a tenant causes damages and destruction to the owner’s personal property and unit dwelling. It is also for coverage if a tenant causes damages and destruction to others physically, and their property. As an example, a tenant may cause fire to the unit that spreads to other units, thus touching upon other’s property as well as that of the Association (common property elements). This event, and others similar to it, would potentially set in motion a host of liability issues. While there is no required minimum, it is advised to carry $1,000,000 of liability.

PROVISO TO LANDLORD

• The Master Insurance policy will not subrogate against owners because they are naturally, as members of the Association, covered for liability under this plan with regards to damages unwittingly caused to the common property.
• The Association will subrogate against a tenant, however, because they are Third Party entities not covered under the Master Insurance policy for similar situations.  Hence tenants require their own liability insurance.
• Be advised that because owners and tenants are jointly and severally liable, an owner can be subrogated against by the Association’s insurance policy due to a tenant’s damaging actions towards the common property.  Therefore, if the tenant has insurance, an owner can be subrogated against for the remaining balance not covered in such policy. If tenant does not have insurance, an owner can be subrogated against for the total balance not covered in such policy.
• Be advised that, by the same process, whether a tenant has insurance or not, owners may be held liable for damages sustained to other persons and their property caused by the tenant.
• It is therefore ALWAYS prudent for a Landlord to acquire and maintain appropriate levels of insurance coverage.

TENANT INSURANCE POLICY

Tenants are considered Third Party entities and raise the liability to the Association. Please be advised that tenants are personally responsible for damages and destruction to the common elements. Tenants are required to acquire and maintain insurance, and such a policy is typically referred to as Renter’s Insurance. A tenant MUST:

a. Acquire insurance and show proof thereof prior to coming onto the property.

b. Maintain insurance for the duration of the lease term, and show proof thereof at renewal dates.

c. Carry minimum liability coverage in the amount of $500,000.

d. Name Maplewood Condominium Association and the Landlord as ADDITIONAL INSURED in the policy.

Tenant’s should acquire and maintain a Renter’s Insurance Policy that includes at least the following coverage:

a. Personal Property: It is advisable to create and maintain an updated list of all your valuables, along with pictures, and also record a video of the interior of the unit. Take stock of all that you wish to insure (clothing, furniture, jewelry, collectibles, paintings, electronics, office items, computer, books, household items, kitchen, garden equipment, appliances, etc.,) and estimate the total cost of replacement for unit contents. The total cost of replacement of personal contents is the value that should be insured. All personal property that is housed on common property, such as vehicles, should also be insured.

b. Medical Liability (if persons hurt themselves inside the unit): This is to insure the tenant in the event that someone other than the tenant injures themselves inside the respective unit.

c. Personal & General Liability (if you damage the unit or other’s property, and injure others): This is to insure the tenant against his/her own misconduct and negligence towards (1) the unit itself, and (2) against damages sustained by others and their property. Hence, this is for coverage if a tenant causes damages and destruction to the landlord’s property and unit dwelling. It is also for coverage if a tenant causes damages and destruction to others physically, and their property (adjacent units or entire building). As an example, a tenant may cause fire to the unit that spreads to other units, thus touching upon other’s property as well as that of the Association (common property elements). This event, and others similar to it, would potentially set in motion a host of liability issues. The required minimum to carry is $500,000 of liability.

PROVISO TO TENANT

• The Association will subrogate against a tenant because they are Third Party entities not covered under the Master Insurance policy.  Hence tenants require their own liability insurance.
• Therefore, if a tenant causes damages (willfully or not), such as in the event of a fire, the Association’s master insurer will first restore such damages, and secondly take legal action against the causal party for the total cost of damages plus deductible. This process will go into effect automatically from the master insurer without the intervention of the Association.