Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Property InsuranceMedium
A condominium association has a Condominium Association Coverage Form (CR 00 17). A severe storm causes significant damage to the exterior walls and roof of the condominium building, as well as damage to built-in cabinets within several individual units. Which of these damages would typically be covered under the association's policy?
- AOnly the exterior walls and roof.
- BOnly the built-in cabinets within the individual units.
- CNeither the exterior walls, roof, nor the built-in cabinets.
- DBoth the exterior walls, roof, and the built-in cabinets.
Show answer & explanationAnswer & explanation
Correct answer: D. Both the exterior walls, roof, and the built-in cabinets.
The Condominium Association Coverage Form (CR 00 17) typically covers the common elements, exterior property, and often the 'fixtures, improvements, and alterations' within individual units that are part of the building, such as built-in cabinets. This contrasts with an individual unit owner's HO-6 policy, which covers 'walls-in' from the studs.
Why the other options are wrong
- A. This is partially correct, but the association policy often extends to built-in items within units.
- B. This is incorrect; the association policy primarily covers the building's structure and common elements.
- C. This is incorrect; the association policy is specifically designed to cover such damages to the building and its integral parts.
Condominium Association Coverage Form
A commercial property form that covers the buildings, common elements, and sometimes built-in fixtures within individual units of a condominium.
- Covers common property (roofs, walls, lobbies)
- May cover 'fixtures, improvements, and alterations' within units
- Distinguished from individual unit owner (HO-6) policies
Memory trick: Association covers the 'shell and shared,' owner covers 'inside and personal.'