Whole-Building Insurance: Cover, Deductibles and Excess

The whole-building policy is the insurance contract that protects the condominium from damage to the common parts and from civil liability toward third parties. It is not required by law, but the owners' meeting can approve it and in practice it is almost always in place, because it covers events such as fire, water damage, breakage of common pipes and damage caused to third parties by the common parts under Article 2051 of the Italian Civil Code. Knowing the guarantees, deductibles and excess is essential to understand who really pays for a claim.

What the whole-building policy is

It is a multi-risk policy that insures the entire building, in many cases including the private properties and not only the common parts. The policyholder is the condominium, represented by the manager, while the insured parties are the owners. Taking out and renewing the policy fall among the acts the manager carries out in implementation of the meeting's decisions and within the powers set by Article 1130 of the Italian Civil Code.

The policy is not imposed by law, but the meeting approves it with ordinary majorities and sets its limits and guarantees. It is a matter of good management, because a single major event, such as a fire or a widespread flood, can generate costs the common fund could not cover.

The main guarantees

Each contract has a modular structure. Some guarantees are basic, others optional and must be requested explicitly. Before signing it is worth reading the list of coverages and the exclusions carefully.

• Fire and similar events, lightning, explosion
• Water damage and leak search for breakage of common pipes
• The building's civil liability toward third parties for damage from common parts
• Weather events, hail, snow overload, if requested
• Glass, vandalism, power surges, as accessory guarantees
• Recourse by third parties and neighbors for damage spread to other properties

Deductible and excess: how they work

The deductible and the excess are the two forms by which the insurer leaves part of the damage to the insured. The deductible is a fixed amount subtracted from the compensation: if the damage is lower than the deductible, the company pays nothing. The excess is instead a percentage of the damage left to the insured, often with a guaranteed minimum. The two clauses can coexist on the same guarantee.

The portion of damage not covered by the deductible or the excess remains with the condominium and, unless otherwise provided, is shared among the owners under the criteria of Article 1123 of the Italian Civil Code. If, however, the damage is attributable to a single owner, the condominium can then seek recourse against them for the share not covered by the policy.

The policy in damage between owners

In claims between one apartment and another the role of the whole-building policy depends on the source of the damage. If the damage arises from a common part, the building guarantee applies. If it arises from a private property, the individual owner's civil liability comes into play, covered by their possible personal policy or by the neighbor-recourse guarantee if included. Understanding at once where the water starts avoids opening the claim on the wrong guarantee.

How to choose and manage the policy

A good policy is not the one with the lowest premium, but the one with limits adequate to the building's value and with reasonable deductibles. It is useful to compare several quotes, check the exclusions, verify that leak search is included and bring the choice to the meeting with a transparent comparison.

• Limits consistent with the building's reconstruction value
• Clear, non-penalizing deductibles and excess
• Inclusion of leak search and neighbor recourse
• Exclusion list checked before signing
• Deadlines and renewal monitored to avoid uncovered periods

Keeping policies and deadlines under control

For cover to stay always active, constant control of limits, premiums and deadlines is needed, along with the history of open claims. With AmministraPro the manager records the condominium's policies, receives deadline reminders and links each claim to the unit and owner concerned, keeping full traceability. The features are shown on the /funzioni page and the available plans on the /prezzi page.