Clarified and Expanded Condominium Coverage

(1) Conformance With Master Deed and Bylaws

One of the most common problems in Condominium policies is their nonconformance to the basic legal documents of the condominium. Almost all condominium declarations or bylaws treat the matter of insurance with some specificity.

Any condominium board that approves an insurance policy not conforming to the condominium instruments runs a serious risk of legal action being taken against it in the event of a claim not fully honored by the insurance carrier.

The major source of protection available to a condominium board against the perils of nonconforming insurance policies is through an endorsement to the master policy conforming the coverage to the requirements of the condominium instruments, notwithstanding provisions or omissions to the contrary in the master policy itself.

(2) Waiver of the Right to Avoid Liability For a Loss Caused By an Act of the Condominium’s Board, a Member Thereof, or an Individual Unit Owner

Deliberate acts of arson or gross negligence on the part of a unit owner might render the master policy unenforceable. The unit owner would in effect be recovering for his/her own negligence. An endorsement that the master policy cannot be nullified by an act of a unit owner, board of directors, or someone employed by the condominium should be included.

(3) Permission Granted to Complete

Since it is probable that some continuing construction activities may still take place, coverage should be given for this additional exposure.

(4) Waiver of Subrogation and Additional Property Coverage Should be added.

(5) Property Specifically Covered (“Common Property”)

The policy itself will be specifically amended to included coverage for the following items:

(a) Outdoor swimming pools, fences, diving platforms, light poles, tennis courts, retaining walls not constituting part of a building, walks, roadways, and other paved surfaces.

(b) Underground pipes and plumbing constituting part of lawn sprinkler systems.

(c) Outdoor signs, whether or not attached to a building or structure.