Insurance for Condominiums & Multifamily Projects
Condominium work carries more claims than almost any other project type for design firms, and insurance applications ask for it by name. Some carriers exclude it, cap it, or price it separately.
The reason is the owners. A condo association represents every unit owner, it has a budget for lawyers, and in many states it can bring construction defect claims years after completion.
Why Condo Work Is Different
One association claim can bundle water intrusion, cracking and code issues across the whole building.
Defect claims can arrive many years after completion, within the state’s statute of repose.
Windows, balconies, roofs and waterproofing are the most common sources of condo claims.
Turning apartments into condos brings old work under new owners who expect new-building performance.
For example: the balcony leaks
Seven years after completion, a condo association sues the developer over balcony leaks that damaged units below. The developer brings in the architect, the structural engineer and the waterproofing consultant.
Each firm’s outcome turns on its scope, what its drawings showed, whether its coverage stayed continuous with the same retro date, and whether its policy limits condo work at all.
Hypothetical example for illustration. Coverage for any claim depends on the policy terms and the facts.
Contract Language to Watch.
Broad indemnity to a developer on a condo project can reach far beyond your own negligence.
Large condo projects often use a project-specific policy for the design team. It can protect your practice limit.
Condominiums & Multifamily: Common Questions
Why does my application ask about condo work separately?
Because condominium projects produce more claims than most other building types, and carriers price that. Some limit or exclude it, so the percentage you report matters.
Is apartment work treated the same as condo work?
Usually not. Rental apartments have a single owner, while condos have an association of owners who can bring claims together. Carriers often treat them differently.
Should we buy a project policy for a large condo job?
It is worth pricing. A project policy keeps one large condo exposure from using up the limit that protects the rest of your firm.
Disciplines Most Active on Condominiums & Multifamily Projects.
Tell Us About Your Firm. We’ll Tell You What We See.
Starting out or renewing, with a policy in hand or not. If something is worth discussing, we’ll call. If not, we’ll say so.