Condominium insurance: is it mandatory? The meeting's role

In Italy the law does not generally require insurance of the condominium building: there is no rule obliging the condominium to take out a global building policy. The duty can, however, arise in two ways: if the condominium regulation provides for it, or if the owners' meeting decides so with a resolution. Outside these cases the choice to insure remains an option, though strongly advisable given the condominium's objective liability toward third parties. The administrator, alone, cannot sign the policy without authorisation.

No legal duty, but a high risk

The absence of a legislative duty does not mean the absence of risk. As custodian of the common parts under Article 2051 of the Italian Civil Code, the condominium responds objectively for damage caused to third parties by the roof, facade, stairs and shared systems. Without cover, the compensation falls directly on the owners according to their thousandths (millesimi). This is why the global building policy, although not mandatory, is in practice a prudent management tool that the administrator has an interest in proposing to the meeting.

When the duty arises from the regulation

If the condominium regulation provides for the duty to insure the building, taking out the policy becomes obligatory and the administrator must carry it out. A clause of this kind, contained in a regulation of a contractual nature, binds all the owners. In that case the meeting does not decide whether to insure, but may resolve on the content of the policy, the company and the limits. Failing to activate the cover provided by the regulation can expose the administrator to liability for breach of their management duties.

When the meeting decides: the resolution

In the absence of a provision in the regulation, the insurance is taken out by the administrator upon a resolution of the meeting. It is the meeting that assesses the opportunity of insuring the building, chooses among the proposals and sets the essential parameters. The administrator is not entitled to conclude the contract without having received authorisation from a resolution of the participants: acting autonomously would expose the expense to challenge. The resolution should indicate at least the limits, the required covers, the duration and the premium cap.

What majority is needed

The resolution ordering the building insurance is an act of ordinary management and follows the majorities of Article 1136 of the Italian Civil Code. On first call the favourable vote of the majority of those present representing at least half the value of the building is required; on second call the majority of those present representing at least one third of the value of the building is sufficient. These are useful points to keep in mind when running the meeting:

• Place the item on the agenda with a clear indication of the decision to be taken
• Present several comparable quotes, with limits, deductibles and uncovered amounts compared
• Minute the parameters resolved, so as to define the administrator's mandate
• Distinguish the resolution authorising the policy from the one approving its cost in the budget

The limits on the administrator's powers

Outside the regulation or a resolution, the administrator cannot bind the condominium to a multi-year insurance contract nor decide limits and covers autonomously. They may, however, carry out the urgent conservative acts provided by Article 1130 and act to protect the common parts in situations of danger. The dividing line is clear: the strategic choice to insure the building belongs to the meeting, while the execution and operational management belong to the administrator.

Bringing the decision to the meeting with clear data

An informed decision requires ordered information: comparison of proposals, the building's claims history, deadlines of current policies. A management software such as AmministraPro helps the administrator prepare the agenda, attach the quotes, minute the resolution and archive the policy with its deadlines, keeping the entire decision path traceable for the benefit of the owners: the features are described on /funzioni and the plans on /prezzi.