The beginning of the New Year is a good time to review the association’s insurance policy to confirm that coverage suits the association’s needs. In fall 2012, the Massachusetts Court of Appeals found that a broken pipe under the basement slab of a unit that caused the slab to sink several inches was not covered by the association’s insurance policy. Audubon Hill South Condominium Association v. Community Association Underwriters of America, Inc., No. 11-P-1546, Mass. App. Ct., Sept. 20, 2012. The court found that the policy expressly assigned the covered losses to one section of the policy and the excluded causes to another section of the policy.

In addition to the premium costs, the association should also review the CC&Rs to make sure coverage is in compliance with the governing documents (don’t be under or over insured) and, given the recent changes in the real estate economy, consider having the property re-appraised.

If your association needs assistance with a review of insurance, an attorney from our firm, Mulcahy Law Firm, P.C. will be glad to assist you.

Happy New Year!

Charlene Cruz, Esq.