Liability and Event Insurance for Condo Event Spaces
In a great condominium complex, your unit owners are more than just neighbors: they’re a community. To build on the sense of community, common areas are available for use for all owners. While you might have a gym or pool, one of the most common areas is an event space that is available for condo owners to use or rent. However, especially for larger events, these events can open up your condo association to large amount of liability that may exceed or not be covered under your general liability coverage for your common areas in your master policy. It’s time to look at event insurance for condo event spaces.
General Liability Coverage for Condo Event Spaces
As part of the master policy for any condo association, you have general liability insurance that provides coverage to the superstructure (sometimes all the way to an all-in policy), as well as to the “common areas” that are used by multiple owners. The problem that can occur is when a large event is hosted at these community centers, where the potential liability or property damage may exceed coverage. More so, some policies may limit the coverage for event spaces, especially for condo guests.
Reasons to Require Event Insurance for the Space
Requiring event insurance for your condo’s event space allows you to increase the liability coverage of events your condominium hosts, ensuring the space can be used to the full potential while still providing complete coverage to all occupants. Event insurance can be useful to expanding options for the space, especially if the space is under-utilized or if you’re planning on renovations or additions to this area. Requiring event insurance, especially for large events such as wedding receptions, corporate events, or other large and expensive gatherings helps provide additional coverage without modifying the master policy or increasing condo fees.
Understanding Event Insurance
Event insurance can differ from provider to provider, from one-day coverage to an extended policy that covers long-term leasing. Most event insurance provides these three common types of coverage:
- Liability: First and foremost, event insurance provides coverage for legal or medical costs due to bodily injury for any of the event-goers.
- Property Damage: This coverage provides coverage to the event space itself, paying for any damages to condo property that are incurred during the event.
- Event Cancellation: If the event is ticketed or services and equipment has been rented, event cancellation coverage can help avoid lawsuit for unpaid services or refunds.
Events and your condo’s event space can help foster a sense of community within your condominium, but it’s important to balance such events with the liability they put on the association’s insurance policies. Requiring event insurance for your condo’s event space is just one way you can better balance the needs of the complex with your master policy. Want to learn more? The condo insurance specialists at H&K insurance can help you uncover issues with your current insurance policies and provide solutions that provide the best insurance coverage for your association and all your unit owners. Contact H&K Insurance today to get started.
