Many Texans choose to live in condominiums for a variety of reasons. The convenience, amenities and safety make it an attractive option. Condominium associations are relied upon to ensure the rules are adhered to and residents are protected. Part of that is having sufficient insurance. If issues arise and there is a dispute over insurance coverage, it can be challenging and costly. Understanding the basics about condominium insurance law is imperative for both the property owner and the association. When issues arise, condominium associations should be aware of the importance of qualified legal assistance.
Basic condominium insurance coverage under the law
As soon as a property is sold, the association must have various forms of insurance. This includes property insurance and commercial general liability insurance. With property insurance, the unit owner must be shielded against common loss for a minimum of 80% of its replacement or cash value. This includes fire and extended coverage. For commercial general liability, the coverage must include medical payments that the condominium board will determine. Bodily injury, death and property damage are covered based on the use of common elements on the property.
All owners will be insured for incidents such as their personal property being stolen, injuries to people in the unit, costs to live in another location if there is damage that must be repaired in their unit, and vandalism. Even if the owner has individual insurance to cover the same property that was damaged, the association is required to provide the primary coverage for repairs and replacement.
Legal assistance can help to settle condominium association disputes
The condominium association has many responsibilities with overseeing a property, not the least of which is making sure the insurance is comprehensive and up to date. Still, if there are disagreements with unit owners and the association fulfilled its duties and adhered to its responsibilities, it is important to be protected from accusations and legal claims. A firm with experience in defending condominium associations faced with challenges based on insurance law can be imperative. Calling for representation and help can be crucial to avoiding long-term legal disagreements and forging workable settlements.