Question

what about liability in the condominium policy especially if someone gets hurt while using gym equipment? Would be covered? Is there liability in this type of insurance?

Answer 1

Essentially there are three legal liability possibilities following bodily injury or property damage at a residential condominium property. Legal liability is placed on: 1) the condominium association; 2) the unit owner; or 3) jointly on the association and the unit owner.

Arriving at the more correct answer to the question: which party (the association or the unit owner) may be ultimately responsible for paying the cost of injury or damage suffered by a third party? Knowing where the injury occurred provides clues as to who is most likely going to be held financially responsible.

Like analysis of the property coverage, analysis of the liability coverage requires knowledge of and a deep understanding of three definitions: common elements, limited common elements, and unit property. The definition of each indicates which party (the association or the unit owner) is responsible for the care and upkeep of the property; and also who is responsible for any injury or damage suffered on the property.

When working with a residential condominium association or the unit owner, each party's potential legal liability must be considered, not just the property exposure. As detailed in this article, the agent must review certain key points when considering liability protection, such as:

• Where did the injury or damage occur?

Coverage limits:

• Does the association require unit owners to carry relatively high limits of liability coverage?
• How great is the difference between the association's and unit owner's liability limits?

• Does the unit owner carry additional loss assessment coverage? What version of the endorsement is being used?
• How does the state in which the association is located apply the concept of joint and several liability?

The injury occurred leaving a limited common element and moving into unit property. Based on statute, the associations bylaws, and policy wording, who knows? Some situations may require court involvement.

As stated previously, most situations involving limited common elements will follow the rules for common elements. But some may end up in a court of competent jurisdiction to decide if one or both parties will be held responsible for the injury or damage.