At Southern we believe that there are insurance policies that are more than important, they are indispensable for the peace of mind of the homeowners' association.
Community insurance policies
How many times have we found ourselves at a homeowners' association meeting and a discussion or suggestion has arisen about the convenience or necessity of having insurance for the association?
The homeowners' association insurance is presented as a protective shield against a wide variety of claims and incidents that may occur in the properties of the homeowners' association. They can cover numerous areas of incidence, from the breakdown of the communal lift, a fire in a property of the community or water damage due to flooding, among many others.
Finding a good and indispensable insurance for the community of owners is one of the main tasks of the governing board of the community of owners, as it is their responsibility to protect the homes and common areas of all the co-owners. Therefore, getting the best insurance with the best coverage is often one of the most important tasks that the managing agency of your community can manage.
Why have community insurance?
Each community needs an insurance policy tailored to its needs, which is why it is essential that when applying for an insurance policy, the particularities of the community are notified in order to optimise the insurance clauses and the price of the policy.
Not only does it allow us to live with the peace of mind that comes from knowing that any accident or unforeseen incident will be covered by our insurance, but it also provides us with a series of benefits of various kinds that we should consider.
For example, thanks to having a community insurance, we can say goodbye to large extraordinary payments. More often than we would like to admit, the repair of these damages involves the payment of high charges, which can sometimes be difficult for homeowners to afford.
In addition, sometimes the amount of the payment can lead to arguments between neighbours, thus damaging the good atmosphere of coexistence in the community. With a community insurance policy, depending on the coverage that has been taken out, the company will cover all the expenses arising from the claim.
Taking out an insurance policy also contributes to saving community funds, not only because it avoids paying community fees, but also because, if you are aware of the coverages included, you can exclude them from those of the private home insurance.
Finally, it is interesting to note that some insurance companies include bonuses in the premiums for the renewal of the insurance policy, in case there have been no previous claims.
Is it compulsory to have insurance for the residents' association?
At the national level, there is no law obliging us to take out such insurance. According to the Horizontal Property Law (LPH)The community can either take out an insurance contract to cover the damage caused to the property or conclude a contract for the permanent maintenance of the property and its general installations.
According to the aforementioned law, in article 9, what is specified is that it is necessary to have a reserve fund, that is to say, an annual sum to cover conservation, maintenance and repair works of the building or those derived from fires or floods.
Although there is no law at the national level that explicitly requires it, there are certain regulations that make it compulsory to take out community insurance. Specifically, it is currently compulsory in the Community of Madrid and the Community of Valencia, while it is voluntary in the rest of Spain.
What do these insurances cover?
We begin by saying that these insurances have a very similar base to Home insurance in terms of guarantees, but instead of covering a single home, we are going to cover a group of homes with their common areas, garages and storage rooms.
Each company sets the basic coverage of its homeowners' association insurance, including a greater or lesser number. However, there are some which are shared by the vast majority of insurers and which are listed below.
Civil Liability:
It covers damage or injury that may be caused to any person passing under or in the vicinity of the building.
Material Damage:
The most common are usually damage caused by fire, explosion, lightning or other atmospheric phenomena.
Water damage:
It includes water damage in pipes belonging to the community of neighbours, leaving as an optional guarantee those generated by private pipes.
Community Assistance:
Most insurers include a community assistance service 24 hours a day, 365 days a year.
Treatment and Prevention of Pests:
They offer a complete service to eradicate the proliferation of cockroaches, moths, etc., throughout the community.
Depending on the neighborhood community, insurers also offer a wide catalog of optional coverage to complete the policy. These tend to be the most common
- Theft.
- Aesthetic damage.
- Breakage of glass, mirrors, etc.
- Legal defence.
- Damage to vehicles inside the garage.
- Clogging of communal pipes and downpipes.
- Accidents suffered by personnel hired by the community.
How to take out a good insurance policy?
First, we must know in detail what the real needs of our community are and pay attention to all those that may need to be implemented.
As a guideline, we should point out that the most frequent claims are those caused by water, such as leaks due to rain or a pipe in poor condition. These claims are followed by civil liability claims.
Finally, the best option is always to be properly informed by a professional to ensure that all the needs of the community are covered. At Meridional Team we can help you to find and contract the insurance that best suits your community of neighbours' needs.