9.6 Condominium Commercial Unit-Owners Coverage Form

The Condominium Commercial Unit-Owners Coverage Form is used to insure commercial condominium unit-owners. It serves as the commercial lines alternative to the personal lines Unit-Owners Homeowners Policy (HO-6). This form provides coverage for the insured unit-owner’s business personal property, such as:

• Furniture
• Machinery and equipment
• Stock
• Personal property owned by the insured and used in the business
• Leased personal property that the insured is contractually required to insure
• Fixtures, improvements, and alterations owned by the insured that make up part of the building

However, coverage does not apply to property that the condominium association is required to insure under the Association Agreement. If the Association Agreement requires the association to cover fixtures, improvements, alterations, or appliances under the Condominium Association Coverage Form, that property is excluded under the Condominium Commercial Unit-Owners Coverage Form, regardless of who owns it.

This distinction is important because the Association Agreement determines which property must be insured by the association and which property may be insured by the individual commercial unit-owner.

Coverage is also provided for personal property of others while that property is in the insured unit-owner’s care, custody, or control. This coverage is useful when a commercial condominium unit-owner temporarily possesses property belonging to customers, clients, or other parties as part of its business operations.

If the Condominium Commercial Unit-Owners Coverage Form and the policy issued to the condominium association or cooperative corporation cover the same property, the Unit-Owners Coverage Form applies as excess insurance. This means the association’s or cooperative corporation’s policy pays first. The unit-owner’s policy pays only after that coverage has been used, and only if additional covered loss remains.