Condominium civil liability policy: cover for third party damage

The condominium's civil liability policy covers the sums the condominium must pay, as a party civilly liable, for damage involuntarily caused to third parties by the common parts of the building. It is the cover that responds when a passer-by is struck by falling plaster, when a guest slips on a poorly maintained common staircase, or when seepage from a condominium pipe damages a neighbour's flat. The basis of the liability is Article 2051 of the Italian Civil Code, which places on the custodian of the common parts a liability of an objective nature.

The condominium's liability as custodian

Article 2051 states that everyone is liable for damage caused by the things in their custody, unless they prove force majeure. The condominium is custodian of the common parts: roof, facade, stairs, courtyards, shared systems. The liability is objective, meaning it does not depend on fault: the injured party only needs to prove the causal link between the common thing and the damage, while the condominium can be released only by proving force majeure, that is an unforeseeable and unavoidable event or the act of the injured party or of a third party. This is why liability cover is central: without it the compensation would fall directly on the owners.

What the liability cover includes

The cover intervenes for damage to persons and property caused to third parties by the common parts. The recurring cases in the life of a building are numerous.

• Falling plaster, cornices or parts of the facade onto people, vehicles or neighbouring property
• Falls and injuries on stairs, entrance halls, courtyards and common areas due to lack of maintenance
• Seepage and flooding from common pipes, roofs and coverings toward units or bordering buildings
• Damage from trees, automatic gates, lifts and other condominium systems
• Damage caused during ordinary maintenance work on the common parts

Limits and exclusions

The limit is the maximum sum the company pays per claim and, sometimes, per year. An insufficient limit leaves the excess uncovered, which would fall on the owners: for a building facing a public road, where the risk toward third parties is high, an adequate limit is advisable. Typical exclusions concern wilful damage, damage arising from unauthorised activities, damage between owners when not expressly included and damage falling under other covers. Careful reading of the exclusions avoids discovering the lack of cover only at the time of the claim.

Condominium liability and individual policies: how they coordinate

The condominium's liability responds for damage originating from the common parts, not for damage arising from exclusive properties. If water escapes from the private pipe of a flat and damages the floor below, the single owner responds with their own civil liability policy, not the condominium one. Distinguishing the origin of the damage is therefore decisive to understand which cover to trigger. In many cases the condominium liability for the common parts coexists with the individual owners' policies for their respective units: good management takes both into account.

The administrator's role in managing risk

Since liability under Article 2051 is objective, the best defence is prevention: scheduled maintenance of facade, roof and systems, periodic checks, prompt action on reported hazards. A well kept building reduces both claims and disputes. The administrator should periodically verify the adequacy of the liability limit, update it after works that change the risk and keep the maintenance documentation, useful to demonstrate diligence in the event of a dispute.

Tracking policies, deadlines and maintenance

The liability policy must be managed together with the schedule of mandatory maintenance, because they are the two sides of the same risk reduction strategy. A management software such as AmministraPro allows the policy to be archived, its deadlines monitored, the maintenance register kept and any claims linked to their files, so that the administrator always has a complete picture of the building's risk: the features are described on /funzioni and the plans, suited both to those managing a few buildings and to those following many, on /prezzi.