A condominium association in Florida has a Condominium Association Coverage Form (CR 00 17) with a Building coverage limit of $5,000,000. A hurricane causes extensive damage to the exterior walls, roof, and the association-owned clubhouse. Additionally, several unit owners' appliances and interior wall coverings are damaged. Which of the following statements accurately describes what the association's policy would cover?
- AThe policy covers all damage to the building, including unit owner appliances and interior finishes, up to the $5,000,000 limit, regardless of the condominium declaration.
- BThe policy covers the exterior walls, roof, and clubhouse, but specifically excludes all property inside individual units, including fixtures and appliances.
- CThe policy covers only the exterior walls and roof, as unit owners are responsible for everything inside their units.
- DThe policy covers the exterior walls, roof, and clubhouse, and may also cover fixtures, appliances, and interior wall coverings within units if the condominium declaration requires it.
Show answer & explanationAnswer & explanation
Correct answer: D. The policy covers the exterior walls, roof, and clubhouse, and may also cover fixtures, appliances, and interior wall coverings within units if the condominium declaration requires it.
The Condominium Association Coverage Form (CR 00 17) covers the building, common elements, and property owned by the association. Crucially, it also extends coverage to fixtures, appliances, and certain improvements within individual units if the condominium's declaration of condominium or by-laws require the association to insure them.
Why the other options are wrong
- A. This is incorrect; coverage for unit interiors is not automatic or universal and is contingent upon the condominium declaration.
- B. This is too broad an exclusion; the policy can cover unit interiors under certain conditions specified in the declaration.
- C. This is too narrow; the policy's coverage for unit interiors depends on the condominium declaration.
Condominium Association Coverage Form (CR 00 17)
This policy covers the condominium building, common elements, and property owned by the association. It may also cover fixtures, appliances, and interior finishes within individual units if required by the condominium declaration.
- Covers common property and association-owned items.
- Coverage for unit interiors (fixtures, appliances, improvements) is determined by the condominium declaration.
- Does not typically cover unit owners' personal property or liability.
Memory trick: Association covers common; unit interior depends on the declaration's command.