Question:
Question regarding insurance.
Is it possible for a Townhome Association to only carry a Master INS. Policy for common area, contractors etc.
but the Homeowners then get a HO-3 rather than have a HO-6 and be under the Associations Master policy?
We have 59 residences consisting of 20 buildings total. Some are 2, 3 and 4 units with common roofs.
Our Bi-laws states: In Article XII Insurance
Section 1 maintenance of insurance “the association, shall maintain, to the extent reasonably available, the following insurance.”
Then followed by maintenance of insurance…..
Thank-you
– Lynn
Answer:
Hi Lynn,
Townhome associations may only be required to maintain insurance according to the Minnesota Common Interest Ownership Act Section 515B.3-113. Subsection (a)(2) states that unit owners shall be included but only for liability claims connected to the existence, ownership, use, or management of the common elements. Subsection (f) also states that unit owners can purchase insurance for their personal benefit in addition to the association’s insurance. The association must also maintain insurance policies required by the governing documents.
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