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9.5 Condominium Association Coverage Form

The Condominium Association Coverage Form is used instead of the Building and Personal Property Coverage Form when property is insured in the name of a condominium association. This form provides coverage for property exposures commonly handled by a condominium association. The coverages provided, as well as the categories of property not covered, are generally similar to those found in the Building and Personal Property Coverage Form. The main difference is that this form is specifically designed for condominium association property, rather than property owned or insured by an individual business.

Under the Condominium Association Coverage Form, building coverage protects the property that the condominium association is responsible for insuring. Building coverage may include:

  • The building itself
  • Completed additions
  • Fixtures located outside of individual condominium units
  • Permanently installed machinery and equipment
  • Personal property used to service or maintain the building, such as fire-extinguishing equipment
  • Additions under construction, if they are not covered by other insurance

Coverage may also apply to certain property located inside individual condominium units if the Association Agreement requires the association to insure it. This may include fixtures, building alterations, and appliances, such as refrigeration, ventilation, cooking, dishwashing, or laundering appliances.

This form is important because the Association Agreement helps determine which property the condominium association is responsible for insuring.

Under the Condominium Association Coverage Form, coverage for business personal property is limited to certain types of property connected to the condominium association. Business personal property coverage applies to:

  • Personal property owned by the condominium association
  • Personal property collectively owned by all unit-owners
  • The association’s interest in labor, materials, or services
  • Personal property leased to the association when the association is contractually required to insure it

This coverage is designed to protect property owned or controlled by the association, rather than personal property owned individually by unit-owners.

If a unit-owner has insurance that covers the same property, the condominium association’s coverage will apply as primary insurance. This means the association’s policy pays first for the covered loss, before the unit-owner’s insurance applies.