You might pm Frostfire about it here or on The Glass Haven. She torches in a condo. I suspect that inspections are good, and informing your condo association at all is bad
I don't know about the bedroom across the hall, but I think that as long as your setup is properly vented you should be okay. Check with Mike Aurelius (over on AGF or TGH) -- he has the best info I have seen on ventilation issues.
I have NO clue about insurance, but that would be something I would be worried about, too. Check with Frosty to see what she does.