Washington State Specialists

Protecting Washington'sCondo Communities

Protecting community associations requires more than a standard policy. Our team partners with Washington condo boards to develop comprehensive coverage strategies that address your unique exposures and fiduciary obligations.

425-209-1206
300+Associations Served
15+Years Experience
WAState Focused

Trusted by associations working with top-rated carriers

TravelersHartfordLiberty MutualNationwideCNAAmTrust

Understanding Association Risk

Condo associations face complex exposures that standard business policies weren't designed to address. Effective risk management starts with understanding these unique challenges.

Shared Property Complexity

Overlapping coverage needs between association and owners

Fiduciary Responsibility

Personal liability for board governance decisions

Water Damage Exposure

Single leak can affect multiple units and common areas

CC&R Compliance

Insurance requirements defined by governing documents

Modern condominium building
Coverage Solutions

Comprehensive Protection

We help associations build layered protection that addresses property, liability, and governance exposures.

Master Property Policy

Comprehensive coverage for your building structure, common areas, and shared systems. Protects against fire, wind, water damage, and more.

Building structure
Common areas
Mechanical systems
Building ordinance
Equipment breakdown
Flood & earthquake options
Master Property Policy
Recent Wins

Associations We've Protected

Real results for Washington condo associations facing real challenges. Here's how we've helped boards secure the right coverage.

Bellevue, WA30 Units

Non-Renewal Rescue

Faced non-renewal after their carrier exited the habitational insurance market entirely — leaving the board scrambling for coverage mid-term with a 45-day deadline.

Our Solution

SmartInsured leveraged its carrier network to repackage the association's property, liability, and D&O coverage into a comprehensive program with a carrier committed to the habitational space.

See how we solved it
🛡️
0%
Premium Savings

Full coverage placed with zero gap in protection

Placed in 18 days
Seattle, WA8 Units

Small Association, Big Coverage Gap

This boutique Capitol Hill association had been operating with a bare-bones property policy and no D&O coverage — exposing board members to personal liability on every vote.

Our Solution

We built a right-sized program pairing master property with D&O and umbrella coverage, negotiating small-association pricing that kept costs manageable for an 8-unit budget.

See how we solved it
✅
First-ever D&O protection

Comprehensive coverage at small-association pricing

Placed in 12 days
Redmond, WA16 Units

Water Damage Wake-Up Call

After a $120K water intrusion claim exposed gaps in their master policy, this association needed a complete coverage overhaul — including proper building ordinance and equipment breakdown coverage.

Our Solution

SmartInsured conducted a full gap analysis against their CC&Rs, restructured the master policy to include building ordinance, equipment breakdown, and proper water damage sublimits, and a $5M umbrella.

See how we solved it
💧
Eliminated 4 critical coverage gaps

$5M umbrella added for catastrophic protection

Placed in 21 days
Facing a non-renewal, coverage gap, or rate increase?
Schedule a Coverage Review

Request a Coverage Gap Analysis

Get a complimentary review of your current coverage to identify potential gaps and opportunities for better protection.

Compliance

Washington State Requirements

Understanding state law and lender requirements helps ensure your association maintains compliant and adequate coverage.

Washington Condominium Act

RCW 64.34 establishes minimum insurance requirements for Washington condominiums, including property coverage, liability minimums, and fidelity bond requirements.

Lender Requirements

Fannie Mae and Freddie Mac have specific insurance requirements for condos to qualify for conventional financing. Non-compliance affects unit sales.

Governing Documents

Your CC&Rs and bylaws often require coverage beyond state minimums. We review your documents to ensure compliance.

Our Approach

Advisory Process

We take a consultative approach, working with your board to develop and maintain an effective insurance program.

Document Review

Analyze CC&Rs, bylaws, and current policies to identify coverage requirements.

01

Risk Assessment

Evaluate property, operations, and governance to understand your exposure profile.

02

Coverage Strategy

Develop recommendations tailored to your needs, budget, and risk tolerance.

03

Market Placement

Access specialized markets to secure competitive terms and coverage.

04

Board Presentation

Present options with clear explanations of coverage, costs, and trade-offs.

05

Ongoing Support

Annual reviews, certificate management, and claims assistance.

06
Real-World Examples

Common Claim Scenarios

Understanding how claims occur helps associations prepare and ensure adequate coverage is in place.

Property Claim

Water Intrusion Event

A pipe burst in a common wall affects five units. The master policy covers building repairs, but disputes arise over interior damage responsibility.

Key Takeaway

Clear CC&R language and proper "walls-in" vs "walls-out" coverage definitions prevent costly disputes.

D&O Claim

Board Decision Lawsuit

Owners sue the board alleging the special assessment for roof repairs was improperly calculated and approved.

Key Takeaway

D&O coverage provides defense costs and protects board members' personal assets.

Liability Claim

Slip and Fall Injury

A visitor slips on an icy walkway and suffers a serious injury. Medical bills exceed $500,000.

Key Takeaway

Adequate GL limits plus umbrella coverage protect association reserves from catastrophic claims.

Fidelity Claim

Embezzlement Discovery

An audit reveals the property manager embezzled $85,000 from operating funds over three years.

Key Takeaway

Fidelity bond coverage reimburses stolen funds and covers forensic accounting costs.

FAQ

Frequently Asked Questions

What insurance does a Washington condo association need?
Washington condo associations typically need a master property policy covering common areas and building structure, general liability insurance, D&O coverage for board members, fidelity bonds, and umbrella coverage. The specific requirements depend on your governing documents, lender requirements, and association size.
What is the difference between a master policy and unit owner insurance?
The master policy covers common areas, building structure, and shared amenities. Unit owner policies (HO-6) cover personal property, interior improvements, and loss assessment. Washington law and your CC&Rs determine exactly where the association coverage ends and unit owner responsibility begins.
Do condo board members need D&O insurance?
Yes, D&O (Directors & Officers) insurance is essential protection for volunteer board members. It covers legal defense costs and settlements from claims alleging mismanagement, breach of fiduciary duty, or wrongful acts in governance.
How much liability coverage should a condo association carry?
Most associations should carry at least $1 million per occurrence and $2 million aggregate in general liability. Larger associations with pools, gyms, or high-value common areas often need $3-5 million or more.
What is a fidelity bond and why do associations need one?
A fidelity bond protects against theft or embezzlement of association funds by board members, employees, or property managers. Many lenders require fidelity coverage equal to at least three months of assessments plus reserves.
How often should we review our association's insurance?
At minimum, review coverage annually before renewal. Additionally, review after significant changes: major improvements, new amenities, CC&R amendments, or large reserve balance changes.

Request a Coverage Review

Schedule a complimentary consultation with our community association specialists. We'll review your current coverage, identify potential gaps, and provide recommendations tailored to your association.

No-obligation consultation
CC&R and policy review
Gap analysis report
425-209-1206

Serving condo associations throughout Washington State including Seattle, Bellevue, Tacoma, Spokane, and surrounding areas.