The importance of the community insurance beyond your home insurance

Living in a co-owned building (or community) means that responsibility and damages are divided into two spheres: private (your home) and common (the structure, roof, stairs, facades, etc.). Relying solely on individual home insurance is a common mistake that leaves the owner exposed to major financial risks that only the community insurance can cover.

1. Coverage for damages to common elements

Individual home insurance primarily covers damages within the walls of your dwelling. However, if an incident affects structural or common elements, the responsibility falls on the community.

• Example of common damage: A broken general downpipe in the light well floods your apartment and the neighbour's. Your home insurance may cover the damage inside your home, but not the cost of locating and repairing the common pipe, which can be high. Without community insurance, all neighbours would have to pay for the repair through an extraordinary levy (derrama).
• Fire or explosion: If a fire starts in your apartment and affects the facade or the roof, your home insurance may have a coverage limit that is insufficient to cover the repair of the entire building structure, leaving the rest of the owners obliged to pay the excess cost.

2. Civil liability of the community

This is the most vital coverage and the main difference from individual insurance. Home insurance protects you (as an individual) from damages you cause to third parties. The community policy covers the community as a legal entity for damages that its common elements may cause to third parties (including other owners or pedestrians).

• Injury to third parties: If a roof tile falls off the roof (a common element) and injures a pedestrian on the street, the legal claim is directed against the Community of Owners. Without insurance, all owners would be liable with their assets for the compensation, which could be millions.
• Damage between neighbours: If the lack of maintenance of the roof causes dampness in the attic, the community is responsible. Community insurance covers this liability and pays for the repair of the private damage to the attic owner.

3. Legal assistance and defense

Community insurance provides legal assistance and defense against claims from third parties. If a neighbour sues the community over a problem in common areas or disagreement over construction work, the insurance covers the costs of lawyers and solicitors.

4. Coverage of specific essential elements

Sometimes, community insurance has agreements with home insurance that allow for coordinated repair. Furthermore, the community policy is the only one that will cover expensive and essential elements of the building, such as the lift, the entrance hall, central boilers, or garages.