Condominium Corporation

Definition
A Condominium Corporation is the entire group of individual home units along with the land upon which the unit sits. The ownership of the individual home is composed of only of the space within the boundaries of the home. Usually these boundaries will include the inside walls surrounding a room, which allows the homeowner to make some inside modifications without impacting the common area.

What is a common area?
A common area could be a detached recreation facility, common garden area, the lobby of an apartment-type building.

Do others share in the ownership of my unit?
The corporation does not have ownership in the property. It just holds this property in trust on behalf of the group of condominium unit owners.

What is a condo board?
A Condominium Corporation has a board consisting of owners who oversee that the building and common areas have insurance coverage in place and make sure that the corporation conforms to the restrictions imposed by the charter and local authority.

Is there any financial risk in sitting on the board?
The Directors and Officers should consider having special coverage in the form of a liability policy specifically for Directors and Officers which addresses the actions and responsibilities of such a board. The fiduciary claims which could arise are excluded from the Commercial General Liability policy that the condominium corporation will have in place.

The insurance answer
Condominiums have unique concerns. Some of the fire concerns for apartments are the same including the value of building and storage of potentially hazardous items. The condominium corporation needs to clearly define insurance responsibilities for common areas. Unit owners need to know what is considered an upgrade so that they are aware of insurance needs.