Rhode Island Condo Association Insurance Policy Information
Rhode Island Condo Association Insurance. If you are a part of a condominium association or you own a part of a condo, then you know how important it is to have insurance. A condo is a building that contains a number of individually owned apartments or houses. Although each person owns a part, there are parts of the condo that are shared.
Just as a typical home, many risks come with owning a condominium. This is why it's important to get Rhode Island condo association insurance to protect your property.
Rhode Island condo association insurance protects your property from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Condo Association Insurance Basics
A condominium owners' association is created to help with management of the building. Whatever the size of the property this association is required to assist in the administration of the expenses, repairs and ensuring that the buildings are secured with insurance.
These types of associations create rules that help to govern the operation of the buildings. The Rhode Island condo association insurance master policy outlines which parts of the property the association has insured and which parts the different persons who own units must get insurance to protect.
Condo Association Property Coverage
An association master policy provides protection for the different parts of the RI condo such as hallways, sidewalks, elevators, roofs and basements of the condo building. As a unit owner, you are responsible for protecting your part of the condo.
With condo association insurance you are provided with three types of building coverage, and they include:
- Single entity coverage: This coverage helps to protect the basics elements of the building. It also covers standard finishes inside each of the units. However, it does not cover the personal property of the unit owner. To protect your personal property, you'll have to get separate insurance.
- Bare walls coverage: With this Rhode Island condo association insurance coverage, you also cover the essential building elements. This insurance also provides coverage for parts of the building such as walls, roof, floors, and elevators. As a unit owner, you'll have to get separate insurance for items such as bathrooms and kitchen fixtures, flooring, countertops and the other parts of your condo.
- Modified single entity coverage: Also known as all-in coverage covers improvements made to your RI condo. It includes fixtures, installations and any improvements you make to inside your of the condo.
Condo Association Liability Coverage
Your condo association insurance should cover lawsuits. Something as simple as a slip or fall could result in a devastating loss from a lawsuit. If the RI property has a pool, hot tub or other shared places, then the chances of bodily injury are even higher, which requires you to have the right Rhode Island condo association insurance. Following are some of the most common coverages for condominium associations:
General Liability Insurance: With this type of Rhode Island condo association insurance, you can get broad coverage for any accident that can happen on your complex. If someone comes to your condo and they slip and get injured the association can be sued for any damages.
Crime and Fidelity Coverage: If there is theft of association funds or another type of financial theft then having this insurance provides you with the necessary protection.
Equipment Breakdown Coverage: This type if insurance covers any costs associated with the breakdown of machinery. When machinery breaks down, you stand the chance of losing income. By having this type of insurance, you can keep your business running.
Directors and Officers Liability Insurance: With this Rhode Island condo association insurance protection, the directors of the condo association are covered against lawsuits. A director's performance on the board could result in a lawsuit. As a director, you are responsible for making important decisions which you can be held liable for.
Hurricane of Flood Insurance : Hurricane and flood insurance gives you the protection you need in the event a storm hits your condo. The damage caused by floods or hurricanes are usually not a part of your association master policy. This means you will have to get this coverage separately.
Rhode Island Condominium Association's Risks & Exposures
Premises liability exposure comes from use of the communal areas as the association is responsible for all maintenance and upkeep. All buildings should meet life safety codes regarding smoke and fire detection, fire extinguishers, and carbon monoxide detectors. To prevent slips and falls, all premises must be well maintained.
There should be no frayed or worn spots on carpet, and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked with backup lighting systems in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. Balconies should be regularly inspected and maintained.
Swimming pools, exercise facilities, and playgrounds should be limited to members and their guests and properly maintained. There should be a maintenance activity log to document the association's response to unit owners' needs. Personal injury losses may occur due to alleged discrimination or invasion of privacy.
Directors and officers exposure is from actions and decisions made by the elected officers of the condominium association. The exposure can be minimal when all responsibilities are shifted to an outside management firm. If the condo association operates without outside assistance, the condo association and its individual officers can be held liable for adverse actions such as discriminatory practices, failing to maintain the property in a responsible manner, or mismanagement of shared escrow funds. Policies and procedures should be published and consistently followed.
Workers compensation exposure is nonexistent if the condo association contracts all services to an outside management firm. If there are employees, office workers may develop repetitive motion injuries such as carpal tunnel syndrome. Maintenance workers can experience cuts, burns, back sprains from lifting, and exposure to machinery used for lawn maintenance and other repairs.
Skin and lung irritations can result from working with cleaning chemicals and paint. Animals owned by unit owners can bite or kick workers. Any contract with outside firms must specify who is responsible for providing workers compensation coverage to the workers. If the subcontracting firm is responsible, the condominium condo association should obtain certificates of insurance to verify that coverage.
Property exposure consists of the buildings, grounds, swimming pools, parking areas, and other property jointly owned by the condo association's members. The bylaws of the association will specify what is owned by the association and how it must be insured. Ignition sources include electrical wiring, heating and air conditioning systems, and cooking equipment within residential units. There should be hard-wired smoke or fire alarms in all units and common areas. Personal property is limited to the office and furnishings in the community building.
Crime exposure comes from employee dishonesty in the handling of the escrowed funds to be used for maintenance and repair. Employee dishonesty is controlled through background screening, disciplined controls, and division of duties.
Inland marine exposure comes from accounts receivable for condominium association fees and assessments due, computers, and valuable papers and records for association and owners' information. Duplicates of all records should be made and kept off premises for easy replication in the event of a loss. Lawn equipment may be considered contractors' equipment, but is usually included as building property.
Business auto exposure is generally limited to hired and non-owned for employees running errands. If a maintenance vehicle is owned by the condominium association, all drivers must have licenses appropriate for the vehicles driven and acceptable MVRs. All vehicles must be maintained with records kept in a central location.
RI Condo Association Insurance
As an owner of a condo unit, it's important that you find the right protection. With association master policy some things are covered in the condominium building. You, on the other hand, may need to get additional insurance for your part of the condominium. When you get insurance for your condo, you are protecting your investment.
Rhode Island Economic Data, Regulations And Limits On Commercial Insurance
If you are considering starting a business, it's important that you choose the right location for your operation. Ensuring that the area offers the right market and demographics that will benefit from and be interest in the goods and/or products that your business intends on providing are vital for your success.
If you are thinking about starting a new company in Rhode Island or would like to expand the operations of an existing company into the state, it's crucial that you ensure the state offers a healthy climate that will allow your business to reap as much success as possible.
By assessing the employment rate of a state, as well as the key business sectors that are thriving there, you can determine if Rhode Island is a practical location for your company. Additionally, to ensure that you are in compliance with the law, it's imperative that you are aware of the commercial insurance coverage that business owners are required to carry in the state.
Below, we offer an overview of the economic trends and commercial insurance requirements in the Plantation State so you can determine if it will be a good location for your business.
Economic Trends For Business Owners In Rhode Island
As of December, 2019, the Bureau of Labor Statistics reported that the unemployment rate in the state of Rhode Island was 3.5%, which was on-par with the national average, which was also 3.5% at the same time.
Economists credit favorable taxes, the close proximity to regional markets, and the diverse workforce for the state's health economy.
In regard to locations within the state that offer the best opportunities in the Ocean State, urban areas are ideal. This includes:
The suburban regions that surround the state's metropolitan areas also offer favorable conditions for businesses.
Businesses of varying sizes and in a variety of industries are thriving in RI. At the time of writing, the sectors that are seeing the most activity in Rhode Island include:
- Financial services
- Health care
- Hospitality and tourism
- Professional services
Commercial Insurance Requirements In Rhode Island
The Rhode Island Division of Insurance Regulation regulates insurance in RI. Rhode Island mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Rhode Island requires you to have worker's compensation insurance if you have four or more employees on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Rhode Island also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Commercial Property Insurance
Read up on small business commercial property insurance, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.
- Apartment Building
- Business Interruption
- Commercial Flood Insurance
- Commercial Property
- Commercial Property Insurance Policy Coverage Forms
- Condo Association
- Contractors Equipment
- Duplex Rental Property
- Electronic Data Processing Equipment
- Equipment Breakdown Protection Insurance
- Homeowners Association Insurance
- Inland Marine
- Jewelers Block
- Manufacturing And Mercantile Rental Property
- Mobile Home Park
- Non-Residential Building Operators
- Office Buildings
- Safeco Landlord Insurance
- Shopping Center & Strip Mall
- Vacant Land
- Vacant Property
- What Are Commercial Property Insurance Endorsements?
Rental property owners, real estate developers and property managers should keep an accurate survey of each property they own or that is in their care. This survey should include inventories of furnishings and equipment at those properties. These documents establish the extent of their insurable interest, facilitate the arrangement and placement of insurance and minimize controversy and confusion if a loss occurs.
Insurance coverage on property, general liability and professional or errors and omissions liability should be arranged and placed for every real estate and rental property risk.
The main goal of any commercial property insurance program is to protect the insured's real and business personal property. Buildings and their contents property usually represents a significant portion of its total assets, regardless of the size of the business. A commercial property program can provide the coverage you need if a loss should occur.
The ISO Commercial Property Building and Personal Property Coverage Form is an insurance industry standard that provides this needed coverage. As a result, it should always be reviewed and used as a benchmark for comparison when evaluating any commercial property coverage form.
This policy treats business personal property as more than just the contents of a building. When there is a limit of insurance on the declarations, property can be covered if inside the building or structure or within 100 feet of the building or premises and either in the open, or even in or on a vehicle.
There are many endorsements available to tailor the ISO Commercial Property Coverage Forms. Some are mandatory for all policies while others are mandatory for specific classifications and types of business. Others are optional and permit a standard form to be customized to meet a specific risk's coverage needs. Endorsements broaden, restrict, delete, modify, or add coverage.
These policies can provide the following additional coverages for small specific limits of insurance: debris removal, preservation of property, fire department service charge, pollutant clean up and removal, increased cost of construction and electronic data.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Contractors' Equipment, Fine Arts, Cyber Liability, Employment-related Practices, Automobile Liability and Physical Damage, and Stop Gap Liability.
Request a free Rhode Island Condo Association insurance quote in Barrington, Bristol, Burrillville, Central Falls, Charlestown, Coventry, Cranston, Cumberland, East Greenwich, East Providence, Exeter, Foster, Glocester, Hopkinton, Jamestown, Johnston, Lincoln, Little Compton, Middletown, Narragansett, New Shoreham, Newport, North Kingstown, North Providence, North Smithfield, Pawtucket, Portsmouth, Providence, Richmond, Scituate, Smithfield, South Kingstown, Tiverton, Warren, Warwick, West Greenwich, West Warwick, Westerly, Woonsocket and all other RI cities & Rhode Island counties near me in The Ocean State.
Also find RI local small businesses by General Liability Class Code and learn about Rhode Island small business insurance requirements for general liability, business property, commercial auto & workers compensation including RI business insurance costs. Call us (401) 371-8771.