Main points to consider as an owner and a member of the board
HOA Master Policy
All condominium associations must have an HOA master insurance policy to protect common areas against damage caused by the risks they face in their daily operation and natural phenomena: fire, explosion, lightning, earthquake, volcanic eruption, storms, hurricanes, floods, avalanches, landslides, damage to third parties and owners within the facilities, breakage of machinery and electronic equipment, theft and breakage of glass, mainly. With this insurance policy it is guaranteed to have the money for the repairs and that the operation returns to its normal standards before the accident. This policy does not cover the contents of the units or the damages that people suffer inside them. This is the responsibility of each owner and must have an individual insurance policy.
Common areas
Although several states of the Mexican Republic legally give definitions on what are the common areas considering the walls and meofs, as well as the service facilities, and the entire structure of the building including its façade, are common areas. All areas and constructions outside, including roofs, pools, retaining walls, security booth, perimeter fences, parking lots, etc., as well as machinery and equipment (elevators, pumps, transformers, gym equipment, etc.) to service everything in housing as a whole, are considered common areas as well. The owner of a condominium has a percentage (proindiviso) on all of them. Therefore, it is in his/her interest that they are protected.
Windows, sliding doors and balconies
These are part of the façade of the building and, although they are for private use, they are also considered in the HOA master policy of the whole set. The reason is that, if one has an accident and is not repaired, it will affect the image of the entire building. For this reason, it is covered within the Glass Break section of the Master Policy.
Reconstruction Values.
The first and most important step is for the administrator, together with the HOA board of directors, is to know exactly the reconstruction value of all the constructions and contents of the common areas (machinery and equipment). Having this information updated gives certainty to the owners that their investment and equity.
Damages not covered in the Master Policy
Sometimes the master policy does not cover all risks, usually that of Hydrometereological Phenomena (damage from rain, hurricane, tsunamis, flood, avalanches, landslides, etc.), so each owner must consider insuring the total investment, at market value, of their condominium.
