Community Association Insurance in Massachusetts

Massachusetts at a glance

Condominium statute

M.G.L. Chapter 183A

Governs master deed, unit percentage interest, and association insurance duty.

Governance structure

Most associations organized as trusts or unincorporated associations, not corporations

D&O and liability policies should be checked for correct named-insured wording.

Coastal flood exposure

NFIP RCBAP commonly layered on North Shore, South Shore, and Cape Cod condominiums

Confirm current flood-zone and deductible terms with a licensed agent.

Primary insurance regulator

Massachusetts Division of Insurance

Confirm current filing and licensing guidance directly with the division.

Chapter 183A and the master deed

Massachusetts General Laws Chapter 183A requires a master deed and by-laws that set out each unit owner's percentage interest in the common areas and the association's obligation to maintain insurance on the building. Because Chapter 183A predates many of the more detailed disclosure and reserve provisions found in newer state condominium acts, the master deed and by-laws for older Massachusetts condominium conversions — common in Boston's triple-decker and brownstone stock — carry more of the interpretive weight than the statute itself.

Trust-based governance rather than a corporate board

Most Massachusetts condominium associations operate as an unincorporated association or trust, with trustees rather than corporate directors and officers running day-to-day governance, which can affect how a directors-and-officers policy needs to be worded to actually respond to a trustee named individually in a lawsuit. Confirming that the association's D&O and general liability policies both correctly name the trust or unincorporated association as a covered entity is a recurring gap Provident checks for on Massachusetts renewals.

Fidelity coverage and financing eligibility

Massachusetts condominium associations pursuing Fannie Mae, Freddie Mac, FHA, or VA-eligible unit financing generally need fidelity coverage protecting against embezzlement by a trustee, property manager, or bookkeeper handling association funds, sized relative to the trust's annual assessments and reserve balances. Older self-managed triple-decker conversions with informal bookkeeping are a common source of financing delays when this coverage is missing or under-limits.

Nor'easter, coastal flood, and ice-dam exposure

Coastal Massachusetts associations along the North Shore, South Shore, and Cape Cod face recurring nor'easter wind and coastal flood exposure, often requiring NFIP RCBAP flood coverage layered on top of the master property policy, while inland and Greater Boston associations more commonly see ice-dam and frozen-pipe losses on older roof systems each winter. A single flat property program without a distinct coastal wind deductible tends to underprice the shoreline half of a mixed Massachusetts portfolio.

Who we write this for in Massachusetts

Community association FAQs for Massachusetts