Every year more people are purchasing units in condominium associations. If it is your first home, an investment property, or a downsize, purchasing a unit in an association has many benefits. For example, the association will maintain the common elements and you may have access to many amenities. However, when buying a unit, one thing that owners often overlook is purchasing additional insurance for their unit.

Almost every Declaration in the state of Illinois requires homeowners to take out some form of insurance policy for the interior of their units. These insurance policies do not cover displacement, lost rent, or loss of income. Most people think that additional insurance policies are unnecessary. However, if something catastrophic occurs, such as a pipe burst, a fire, or a storm, and your unit is deemed uninhabitable, you will be forced to move out of your unit and pay thousands of dollars to relocate while the unit is under construction. Further, if your property is used as an investment property, there are policy endorsements that you can add to your insurance policy (and your renter can add to their renter’s policy) that will afford each of you additional protections, including loss of rental income and displacement coverage for the tenant. The cost for displacement insurance and lost rent or lost income insurance is additional, but it will save you money and prevent stress if your unit is damaged.  

Tressler recommends that the association board discuss this topic with their insurance carrier and see if there is additional information that can be provided to the owners about this additional coverage – working with the owners to ensure that they have adequate coverage can also avoid stress and lack of coverage issues on the association side of a catastrophic event as well.  

For more information about this article, contact Tressler attorney Joseph Silverstein at