Condo Association Master Policy in Michigan
The condo association's master policy is the foundation of insurance for the entire community. It protects the building structure, common areas, and the association itself — and unit owners coordinate their HO-6 policies around it.
What Is Condo Association Insurance?
Michigan condominium associations — whether governing a 6-unit building on a West Michigan lake or a 200-unit high-rise in Grand Rapids — carry significant insurance responsibilities as legal entities. The association owns and maintains the building structure, common areas, and shared systems. It employs or contracts workers. Its board makes governance and financial decisions that affect every unit owner. And if a major loss, lawsuit, or governance dispute occurs, the association — and potentially its board members — can face serious financial exposure. Knight Family Agency works with Farmers to build condo association master policy programs for Michigan condominium communities of every size.
Knight Family Agency serves West Michigan with Farmers Insurance products tailored to Michigan families and businesses.
What's Included
Covers the condo building structure, roof, exterior, hallways, lobbies, elevators, mechanical rooms, parking garages, recreational facilities, and all association-owned property at replacement cost. The scope (bare walls, walls-in, or all-in) is defined in your declaration — we help you choose the right standard for your community.
Covers bodily injury and property damage claims arising from common areas — a resident or guest slipping in the lobby, a pool accident, a parking structure incident, or damage caused by association contractors. GL is the association's primary protection against third-party claims.
Board members can be personally sued by unit owners for governance decisions — assessment disputes, rule enforcement, construction defects, and employment decisions. D&O protects both the association and individual board members from personal financial exposure.
Protects association funds from embezzlement, theft, or fraudulent transfer by board members, officers, management companies, or employees. Michigan's Condominium Act and most association bylaws require fidelity coverage sufficient to cover the maximum funds held by the association at any time.
Covers mechanical and electrical failure of shared building systems — elevators, HVAC, boilers, pumps, generators, and pool equipment. Equipment breakdown fills the gap that standard commercial property leaves for internal mechanical failures.
A serious injury in a common area, an elevator accident, or a major lawsuit by a unit owner can generate a claim above standard GL limits. Umbrella coverage adds $1–$5 million in additional liability protection above the base policy for catastrophic events.
Who Needs This Coverage
Whether you're a 4-unit association with a volunteer board or a 300-unit professional community, the association is a legal entity with real property and liability exposure that requires a commercial master policy.
Multi-story condo buildings have elevator liability, shared mechanical systems, higher structural values, and a concentrated population creating a wide range of common area liability exposure.
Michigan lakefront condos face elevated property risks from Great Lakes weather, flooding, and water damage, plus amenity liability from boat launches, docks, and beach areas.
Buildings with commercial space on lower floors and residential condo units above require a master policy that explicitly covers all uses and clearly defines the scope of the commercial policy relative to tenant and unit owner responsibilities.
Self-managed boards with no professional management have the highest D&O and fidelity exposure — governance mistakes and financial mismanagement are more likely without professional oversight.
Large construction projects, facade replacements, or elevator modernizations create additional builder's risk, contractor liability, and assessment exposure that may require temporary coverage enhancements.
Frequently Asked Questions
Get a Condo Association Master Policy Quote
Knight Family Agency builds master policies for Michigan condo communities — properly structured, correctly scoped, and sized to your building.