Condo Association / HOA Insurance in Washington State

Condo associations in Washington carry a uniquely layered set of liabilities that most board members never fully appreciate until a claim arrives. Unlike a single landlord who controls an entire building, a condo association is responsible for common elements — lobbies, hallways, parking garages, elevators, roofs, and exterior walls — while individual unit owners maintain their own interiors. This split-ownership structure creates coverage gaps that are fertile ground for disputes, lawsuits, and uncovered losses if the association's insurance program isn't carefully designed.

The Washington Condominium Act (RCW 64.34) imposes specific insurance obligations on associations. The statute requires the association to maintain property insurance on the common elements and, in most cases, on the building structure itself. It also requires liability coverage for common areas. But the statute sets minimum requirements — and minimums are rarely adequate. Washington has a long history of construction defect litigation in condominiums, particularly in the Puget Sound region where moisture intrusion in wood-frame buildings has spawned multi-million-dollar lawsuits. If your building was constructed between the mid-1990s and mid-2000s and hasn't been through a building envelope inspection, your association is sitting on a potential claim that could dwarf your reserves.

Directors & Officers liability is arguably the most critical — and most overlooked — coverage for condo associations. Board members serve voluntarily and make decisions about assessments, maintenance priorities, vendor contracts, rule enforcement, and reserve funding. Any of those decisions can trigger a lawsuit from a disgruntled owner. An owner who believes a special assessment was improperly levied, that the board failed to maintain the building adequately, or that rules were enforced selectively can sue individual board members personally. Without D&O coverage, board members face personal financial exposure, and the association will struggle to recruit competent volunteers.

Common area liability rounds out the risk picture. A visitor slips on an icy walkway the association was supposed to salt. A child is injured in a pool area with inadequate fencing. A delivery driver trips over a cracked sidewalk. Washington juries have awarded significant damages in premises liability cases, and the association — not individual unit owners — bears responsibility for conditions in shared spaces. Add in cyber liability for the association's financial records and owner personal data, and the insurance needs of a Washington condo association become substantial and complex.