Get the Residential Community and Business Condominium Association Insurance Coverage You Deserve

A residential community and business condominium association master policy typically provides coverage in one of four ways:

• Insures the basic building(s) (walls, roof, floors, elevators, common areas outside of units) plus built-in heating, plumbing, or electrical fixtures, improvements, alterations, cabinets, interior walls and ceilings, wall coverings (such as paint, wall paper, or paneling), flooring (such as carpet, vinyl goods, or hardwood) and appliances.
• Insures the basic building(s) (walls, roof, floors, elevators, common areas outside of units) plus built-in heating, plumbing, or electrical fixtures, improvements, alterations, cabinets, and interior walls and ceilings, but leaves the individual unit owners the responsibility of insuring wall coverings (such as paint, wall paper, or paneling), flooring (such as carpet, vinyl goods, or hardwood), and appliances.
• Insures the basic building(s) (walls, roof, floors, elevators, common areas outside of units) plus built-in heating, plumbing, or electrical fixtures, cabinets, and interior walls and ceilings but leaves the individual unit owners the responsibility of insuring wall coverings (such as paint, wall paper, or paneling), flooring (such as carpet, vinyl goods, or hardwood), appliances, and improvements or alterations inside a unit which were not part of the original condominium plans or specifications.
• Insures the basic building(s) (walls, roof, floors, elevators, common areas outside of units) but leaves the individual unit owners the responsibility of insuring built-in heating, plumbing, or electrical fixtures, cabinets, interior walls and ceilings, wall coverings (such as paint, wall paper, or paneling), flooring (such as carpet, vinyl goods, or hardwood), appliances, and improvements or alterations inside a unit which were not part of the original condominium plans or specifications.

When the residential community and business condominium association insures the structure, a condo unit owner policy is normally written to cover:

• Items not covered by the residential community and business condominium association master policy that may be the insurance responsibility of the individual unit owners/tenants.
• The value of building additions or alterations made by unit owners, at their expense.
• Value enhancements (For example, if carpet is upgraded to quality that is better than the original, the difference would be covered in the event of loss).
• Damage to individual units not assessed against all unitowners and not compensated because of the master policy deductible.

RESIDENTIAL COMMUNITY AND BUSINESS CONDOMINIUM ASSOCIATION BUILDING COVERAGE

Building coverage for Residential Community and Business Condominium Association 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. Refer to Operations Center.

Building coverage is one of the more complex parts of insuring an association. You should discuss your needs fully with your State Farm agent.

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.