Certified Manager of Community Associations (CMCA) 2025 – 400 Free Practice Questions to Pass the Exam

A community with mechanical equipment should consider Mechanical/Equipment Breakdown Insurance because this type of coverage specifically protects against loss or damage to machinery and equipment due to mechanical failures, electrical failures, or other types of breakdowns. This is crucial for communities that rely on mechanical systems such as heating, ventilation, air conditioning (HVAC), elevators, or even pool equipment.

Without this specialized insurance, the community would face substantial financial risks if any of these systems were to malfunction, as repairs or replacements could be costly. This coverage typically pays for the repairs or replacement costs, ensuring that the community can maintain its operations without significant financial strain.

While Comprehensive General Liability Insurance is important for protecting against third-party claims due to bodily injury or property damage, it does not cover the breakdown or failure of the community's equipment. Similarly, Workers' Compensation Insurance is designed to cover employee injuries or illnesses related to their work, and Business Interruption Insurance protects against loss of income due to disruptions in business operations, but neither addresses the specific risks associated with equipment failure. Therefore, Mechanical/Equipment Breakdown Insurance is the most suitable choice for communities with mechanical equipment.