Important Notice Regarding Condominium Insurance
Condominium ownership is a unique combination of individual and group
ownership. The distribution and description of building ownership is
usually detailed in two documents - the master deed and the
declaration of trust. Responsibility for insuring
the unit interior walls, glass, cabinets, appliances and fixtures may
lie almost entirely with the association, entirely with the unit
owner, or somewhere in between. Improvements made by the unit owner
after purchase may be treated differently. And the
responsibility for insurance may not be consistent with the
actual ownership. For example, in many condominium arrangements,
the unit owner owns the interior of the walls, cabinets, etc, but
the association has the responsibility for insuring the building
items for the benefit of the unit owners. In this case, the unit
owner may own many thousands of dollars worth of building items,
but be responsible for insuring almost none of it.
There is no standard condominium unit owners policy which can be relied
upon to insure every condominium properly. Coverage must be carefully
designed to comply with the terms of the above documents and the
provisions of the master policy. If this is not done, there could
be a duplication of coverage or worse, no coverage in the event
of a loss.
To write a condominium unit owners policy properly, the above documents
must be consulted, and the coverage provided by the master policy must
be determined. Then the coverage needed by the unit owner can be
ascertained and the appropriate policy written.
Some associations offer guidance to unit owners through an insurance
coordinator. We are also happy to offer our services, but we must have
the condominium documents and the master policy, or name of the agent
writing it, to do so.
Unless we have reviewed the current condominium documents and the current
master policy, we are unable to make a representation as to the
appropriateness or adequacy of the building coverage provided by
your policy. Even if we have done this in the past, condominium
associations often make changes in master policies from term to term.