Is it required for a condo association to have insurance?

Question

Is it required for a condo association to have insurance?

Answer 1

its subjective depends on which country you are residing.

However please do consider the consequences that will happen if no insurance is in place versus having 1.

"Insurance is like a parachute. Its either you have one when you need it or you will never get to use it"

Answer 2

No but the association will require you to carry a policy

Answer 3

No, there's no law requiring a condo association to carry insurance.

Answer 4

no, it is not necessary for the condo association to have insurance.  But, if your condo association elects officers it would be in their best interest to have a policy for officers and elected officials.  

These people have exposure if they have any say in hiring snow removal service, painters, or lawn care people.  If one of these people would do something to a condo owner, they could potentially come back on the association for hiring someone without a background check.  Additionally if the association were to hire a secretary and for some reason get rid of that person, they could potentially have a harassment suit on their hands.  

If I was an association member I would want a policy especially since they are pretty low cost.

Answer 5

There may be no law that an association has to have insurance but from a practical viewpoint if you wanted to buy one of the units you would not be able to secure mortgage financing if there was no insurance on the condominium.

The association has to carry fire insurance on at least the building structure itself as well as maintain liability insurance for the common areas.