Condominium Association Coverage Form—Archived Article

Condominium Association Coverage Form—Archived Article

April, 2001

ISO Commercial Property Program

Summary: Both the condominium association form (CP 00 17 10 00) and the condominium commercial unit owner form (CP 00 18 10 00) closely follow building and personal property coverage form CP 00 10 10 00 discussed elsewhere (see Building and Personal Property Coverage Form). The CP 00 17 is identical in most respects to form CP 00 10, except in those places where special language is needed to adapt the coverage to the special needs of a condominium association or commercial unit owner.The differences between the CP 00 17 and the building and personal property form are the subject of this discussion. Differences between the current and previous form are noted.

Topics covered:

IntroductionBuilding descriptionPersonal property descriptionProperty not coveredAdditional coveragesExtensions of coverageDeductible and loss paymentUnit owner’s insuranceVacancyWaiver of rightsOptional coveragesDefinitionsFitting the insurance to condominium requirements

Introduction

The Insurance Services Office (ISO) commercial property program provides separate forms for insuring condominium properties from those used for general property. A single form—CP 00 17—is used for condominium associations.  This form is used in conjunction with declaration forms, common policy and commercial property coverage conditions, causes of loss, and any of various other endorsements. Residential unit owners are, of course, insured under the homeowners form HO 00 06 10 00.

Building Description

1.     Covered Property

     Covered Property, as used in this Coverage Part, means the type of     property described in this section, A.1., and limited in A.2., Property Not Covered, if a Limit of Insurance is shown in the Declarations for that type of property.

a.     Building, meaning the building or structure described in the Declarations, including:

(1)     Completed additions;

(2)     Fixtures, outside of individual units, including outdoor fixtures;

(3)     Permanently installed:

(a)     Machinery; and

(b)     Equipment;

(4)     Personal property owned by you that is used to maintain or service the building or structure or its premises, including:

(a)     Fire extinguishing equipment;

(b)     Outdoor furniture;

(c)     Floor coverings; and

(d)     Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering that are not contained within individual units;

(5)     If not covered by other insurance:

(a)     Additions under construction, alterations and repairs to the building or structure;

(b)     Materials, equipment, supplies, and temporary structures, on or within 100 feet of the described premises, used for making additions, alterations or repairs to the building or structure; and

(6)     Any of the following types of property contained within a unit, regardless of ownership, if your Condominium Association Agreement requires you to insure it:

(a)     Fixtures, improvements and alterations that are a part of the building or structure; and

(b)     Appliances, such as those used for refrigerating, ventilating, cooking, dishwashing, laundering, security or housekeeping.

     But Building does not include personal property owned by, used by or in the care, custody or control of a unit-owner except for personal property listed in paragraph A.1.a.(6) above.

Analysis

The current version of the condominium association coverage form clarifies that coverage for the building is exclusive of items such as fixtures found in individual units (except for that required to be insured by the condominium association). Since the CP 00 10 is for a commercial establishment, it is unnecessary to restrict coverage to non-individual units, so “fixtures, including outdoor fixtures” are covered. Further, “appliances used for refrigerating…” are covered under the CP 00 10 without the condominium language that limits coverage to appliances not contained in individual units.  Another difference in the coverage provision is in item (6), which is not found in the CP 00 10. This item adds to the building definition fixtures, improvements, and alterations that are part of the building or structure, and appliances “such as those used for refrigerating, ventilating, cooking, dishwashing, laundering, security, or housekeeping,” when such property is contained within a unit, regardless of ownership, if the condominium association agreement requires the association to insure it. For example, lighting fixtures, built-in cabinets or bookshelves, or a dishwasher that the individual unit owner has installed will be covered by the association coverage form if the association agreement requires that the association insure such property. Note that this extension picks up in part items not included in building item (4)—but only property within a unit, not in the common area.

Personal Property Description

b.     Your Business Personal Property located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described premises, consisting of the following:

(1)     Personal property owned by you or owned indivisibly by all unit-owners;

(2)     Your interest in the labor, materials or services furnished or arranged by you on personal property of others;

(3) Leased personal property for which you have a contractual responsibility to insure, unless otherwise provided for under Personal Property of Others.

     But Your Business Personal Property does not include personal property owned only by a unit-owner.

Analysis