Who Pays for Condo Association Insurance?
Since condo association insurance policies are typically purchased by condo associations, associations are usually the party that actually submits premium payments. Most condo associations in New York, NY pass on this cost to condo owners, though. It’s fairly common for associations to include a condo association’s yearly premiums in the association’s annual assessment, dividing the cost of the premiums evenly among all condo owners.
Condo association policies’ deductibles, similarly, are normally paid by condo associations but can be passed onto condo owners. Since it’s impossible to know precisely when a claim will be filed and deductible have to be paid, deductibles aren’t typically included in annual assessments. Instead, the cost of a deductible is often passed onto condo owners through a special assessment, which can generally be assessed at any time of year.
Because condo association policy’s costs are frequently passed onto condo owners, condo associations in New York, NY should clearly communicate how much condo owners might be assessed. Owners deserve to know how a policy’s premiums will impact their annual assessment and how much a special assessment for a deductible might be. Communicating these details helps owners financially prepare for the assessments they might have to pay.