RESIDENTIAL COMMUNITY AND BUSINESS CONDOMINIUM ASSOCIATION BUILDING COVERAGE
Building coverage for Residential Community and Business Condominium Associations can be tailored to more closely meet the insurance responsibilities of the association as outlined in its by-laws.
Option 1 – Coverage for all building property is included as described in the policy.
If one of the following options is chosen, the Coverage A – Building amount of insurance should not include values for the building items not covered. No additional premium discount applies.
Option 2 – Coverage for building property excludes floor coverings, wall coverings, and appliances located within a condominium unit.
Option 3 – Coverage for building property excludes floor coverings, wall coverings, appliances, and improvements and alterations within a condominium unit.
Option 4 – Coverage for building property excludes floor coverings, wall coverings, appliances, improvements and alterations, and other inside building material, such as cabinetry and plumbing or heating systems, located within a condominium unit.
Option 5 – Coverage for building property will be excluded as specified in writing on the endorsement.
Building coverage is one of the more complex parts of insuring an association. You should discuss your needs fully with your advisor.
In some instances, the condo association master policy does not insure the structure. In this situation, a homeowner’s policy would be written for the unit owner, just as it would be for an insured person with a conventional home.