Maine condominiums range from in-town Portland buildings and converted Victorians to summer cottage associations in York, Ogunquit, Old Orchard Beach and the Midcoast, plus ski-area complexes inland. Many are small and self-managed. Some sit nearly empty from November to May. A few volunteer owners on the board end up deciding what the master policy covers, how big the deductible is and how a loss gets paid.
Portsmouth Atlantic Insurance is an independent agency based in Portsmouth, New Hampshire, and licensed in Maine. We don’t have a Maine office; we serve Maine associations by phone and online. We work with 40+ carriers, and on the commercial side we write habitational risks, including condominium association master policies. In Maine, the carriers we work with for master policies include Safety Insurance, Concord Group, Vermont Mutual, Andover Companies and Providence Mutual. The right fit depends on the buildings, their age and location, and what your declaration requires.
Maine law: the Maine Condominium Act
Maine condominiums created under the Maine Condominium Act (Title 33, Chapter 31 of the Maine Revised Statutes) are subject to a specific insurance section, 33 M.R.S. § 1603-113. In plain terms:
- Property insurance on the common elements against all risks of direct physical loss commonly insured against (fire and extended coverage for a conversion condominium), to the extent reasonably available. After deductibles, the total amount of insurance must be at least 80% of the actual cash value of the insured property, not counting land, foundations and similar items.
- Units in stacked buildings. Where units have horizontal boundaries between them, as in a building with units above and below each other, the property insurance must include the units. It doesn’t have to include improvements and betterments installed by owners.
- Liability insurance, including medical payments, in an amount set by the executive board but not less than any amount in the declaration.
- Notice if coverage isn’t available. If the required insurance isn’t reasonably available, the association must promptly notify all unit owners.
- Policy terms. Each unit owner must be an insured for liability arising from the common elements or association membership, the insurer must waive subrogation against owners and their households, an owner’s act can’t void the policy, and the association’s policy is primary if an owner has other insurance covering the same risk.
- Claim payments. Losses are adjusted with the association, and proceeds go to the association or an insurance trustee, not to mortgagees, to be used first for repair or restoration.
The declaration may require more insurance, and the association may carry any other insurance it considers appropriate.
Older Maine condominiums
The Act, enacted in 1981, applies to condominiums created after its effective date and to older condominiums that amend their documents to opt in (§ 1601-102). Only certain sections apply to older condominiums that haven’t opted in, and § 1603-113 isn’t one of them. Those older communities are governed mainly by the earlier unit ownership law (Title 33, Chapter 10, §§ 560-587) and their own declarations and bylaws. If your association predates the Act, have an attorney confirm which rules apply.
Sources: 33 M.R.S. § 1603-113, Insurance; 33 M.R.S. § 1601-102, Applicability; Maine Condominium Act, Chapter 31 (Maine Legislature)
What a Maine master policy package usually includes
- Property: buildings and common elements, ideally insured to replacement cost, which is usually more than the 80% of actual cash value floor in the Act
- General liability: icy walkways, stairs, decks, docks, beach paths, pools and parking areas
- Directors and officers (D&O): protection for board members for volunteer decisions
- Fidelity / crime: protection for association funds
- Optional: umbrella, equipment breakdown, ordinance or law, and water backup
Bare walls, original specs or all-in?
Your declaration sets the unit boundaries and what the master policy covers inside units, within the rules of § 1603-113 for stacked units.
- Bare walls: the master policy covers the structure, and owners insure finishes, fixtures and flooring.
- Original specifications: the master policy covers units as originally built; owners insure upgrades.
- All-in: the master policy also covers owner improvements. Owners still need an HO-6 for belongings, liability, loss assessment and the deductible.
Each renewal, send owners a one-page summary of what the master policy covers and the deductible, so they can set up their own condo policies to match. Two-unit associations have a separate set of issues; see condex insurance in Maine.
Maine winter risks for associations
Frozen pipes and seasonal vacancy
In a summer association, many units sit empty all winter. A heating failure in one unit can freeze pipes and damage the units next to or below it, and nobody may notice for days. Many policies have conditions about maintaining heat or draining systems when a unit is unoccupied. Boards should write clear winterizing rules, require low-temperature alarms or remote monitoring, and decide in advance how the documents handle water damage that starts inside a unit.
Snow load and ice dams
Long runs of townhouse roofs and older low-slope roofs collect heavy snow. Ice dams push water under shingles and into top-floor units. The board should have a roof snow removal plan, keep roof and gutter maintenance records, and budget reserves for roof replacement. Underwriters ask about roof age and condition on almost every master policy.
Slip-and-fall on common areas
Icy walkways and parking areas are a common liability claim. Hire plowing and sanding contractors under written agreements, ask for certificates of insurance, and keep a log. Higher liability limits or an umbrella are worth considering for larger associations or those with docks, pools or beach access.
Coastal wind and flood
Associations along the York County beaches, Casco Bay and the Midcoast face nor’easters and storm surge. Coastal master policies may carry separate wind deductibles. Standard master policies exclude flood. For a building that’s at least 75% residential, the NFIP’s main option is the Residential Condominium Building Association Policy (RCBAP), and private flood may also be available. See flood insurance. Source: FEMA NFIP Summary of Coverage: Residential Condominium Buildings.
Short-term rentals inside an association
When owners rent units by the week, the association’s risk changes: more guests on stairs, decks and docks, and more people who don’t know the building. Boards should check what the declaration and rules allow and tell their agent how many units are rented short-term. Towns are regulating this too. In Portland, a short-term rental in a condominium can’t be registered without an attestation from the association that its governing documents allow it, plus a copy of those documents. Owners who rent their units also need their own coverage written for rental use; see Maine landlord insurance. Source: City of Portland, Short-Term Rental Registration.
Deductibles, reserves and loss assessment
- Who pays the deductible. The declaration and bylaws decide whether it’s charged to the unit where the loss started or shared as a common expense.
- Reserves. Reserves that can absorb the deductible and uninsured repairs keep owners from facing a special assessment.
- HO-6 loss assessment coverage. An owner’s HO-6 can include loss assessment coverage for the owner’s share of an assessment from a covered loss to common property, up to that limit and subject to policy terms. Owners can often raise a low starting limit.
D&O and fidelity
Volunteer boards approve budgets, hire contractors and enforce rules, and owners sometimes sue. D&O helps defend board members. Fidelity or crime coverage protects association money; set the limit at least as high as the most the association holds at once, including reserves, and confirm volunteer officers are covered.
What a board should send for a review
- Declaration and bylaws, especially unit boundaries and the insurance article
- Current master policy declarations page and renewal
- Number of units, year built, construction, heating and roof details
- How units are used: year-round, seasonal or short-term
- Budget, reserve balance and 3-5 years of loss history
Have your Maine master policy reviewed
Send us your declarations page and insurance article, and a licensed agent will compare Safety Insurance, Concord Group, Vermont Mutual, Andover Companies and Providence Mutual for your association. We don’t charge any fees. Call us at (603) 431-4020.
Why associations work with Portsmouth Atlantic Insurance
We’re family-owned, founded in 2005, and hold an A+ BBB rating. We have 1,000+ Google reviews and over 2,000 testimonials, and we’re New Hampshire’s highest-rated agency on Google. We don’t charge any fees.
Associations in other states: see small condo association insurance in New Hampshire, Massachusetts condo association insurance and Connecticut condo association insurance. Own a rental building with five or more units? See Maine apartment building insurance.
Frequently asked questions
What insurance does the Maine Condominium Act require?
Section 1603-113 requires property insurance on the common elements (and on the units in buildings with units stacked above each other) and liability insurance, to the extent reasonably available. After deductibles, the property insurance must be at least 80% of actual cash value. The declaration can require more.
Does the Act apply to older Maine condominiums?
Not entirely. It applies to condominiums created after its effective date and to older ones that opt in. Most older condominiums are governed by the earlier unit ownership law (Title 33, Chapter 10) and their own documents. Have an attorney confirm.
What happens if the required coverage isn’t available?
Under § 1603-113(c), the association must promptly notify all unit owners by hand delivery or prepaid U.S. mail.
Are frozen pipes in a vacant seasonal unit covered?
It depends on the policy and the documents. Many policies have conditions about maintaining heat or draining systems in unoccupied units, so boards should set winterizing rules.
Who pays the master policy deductible?
The declaration and bylaws decide. Some charge it to the unit where the loss started, and others treat it as a common expense.
Is flood covered by a condo master policy?
No. Associations need a separate NFIP RCBAP or private flood policy.
Which carriers do you work with for Maine condo associations?
For master policies in Maine, the carriers we work with include Safety Insurance, Concord Group, Vermont Mutual, Andover Companies and Providence Mutual.
Ready for a review? Request a quote or call us at (603) 431-4020.