Hanover Insurance Company offers a BusinessOwner Policy to condominium associations. The Hanover Insurance Company BusinessOwner Policy makes the master policy refer to the condominium documents. This means the insurance adjuster is to refer to the by-laws in the event of a claim and interpret what the by-laws intend to cover at the time of loss.
Review the insurance section of your by-laws. Be sure the wording is what your condo board wants. Are the trustees required to insure unit-improvements? Is the insurance section confusing, does it refer to unit improvements subsequent to the first sale? If the by-laws are unclear on what the master policy should cover it can only cause confusion when a claims occur. You may want to consult your attorney.
The Hanover Insurance Company offers a BusinessOwner Policy will include standardized policy form 391-0799 (edition 02/05) which defines Building Coverage as follows:
BUSINESSOWNER COVERAGE FORM
Section I- Property A.1.a. Buildings in the condominium association coverage form or the required state amendments for condominium is replaced by the following (where this is broader and not otherwise in violation of condominium laws, ordinances or statutes):
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) All garages, storage building, and other structures usual to your occupancy including:
(a) outdoor fixtures
(b) swimming pools, and
(c) fences and retaining walls;
(5) 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;
(6) 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
(7) 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.(7) above.
391-0799 (02/05)