“In addition, there should be written guidelines between the condominium and unit owner specifying the hours of the party, the number of guests attending, whether alcohol is being served, etc. Because insurance carriers providing homeowners insurance for condominium unit owners generally will not add the condominium as an additional insured onto the homeowners policy, the unit owner hosting the party should be required to take out a special events insurance policy for that night. This special events insurance policy can be endorsed to include the condominium as an additional insured and a certificate of insurance reflecting the condominium's additional insured status should be provided to the board well before the party is allowed to begin. Lastly, the unit owner should sign a waiver of indemnification releasing the condominium and holding them harmless for any injuries or liabilities resulting from the party.
“The board must be prepared that if they allow this one unit owner to use these areas for a party, that they are setting a precedent for the future, as others will want to use it as well.”
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