Philadelphia Insurance Company offers a Package Policy to condominium associations. Their standard policy refers 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. However, Philadelphia does offer an optional all-in endorsement which would then cover unit owner improvements. Be careful since the all-in endorsement only applies if your condominium documents require all-in coverage. Check you policy for all-in endorsement PH-ULT-ALL.
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 Philadelphia Insurance Company Package Policy will include standardized policy form PI-ULT-030 (6/05) which defines Building Coverage as follows:
CONDOMINIUM ASSOCIATION COVERAGE FORM
b.. 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;
(e) Alarm, communication and monitoring systems.
(5) If not covered by other insurance:
(a) Additions under construction, alterations and repairs to the buildings, and
(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) Your Fixtures, improvements and alterations that are a part of the buildings.
(b) Your Appliances, such as those used for refrigerating, ventilating, cooking, dishwashing, laundering, security or housekeeping, and
(c) Fixtures, installations or additions owned by unit owners and comprising that part of the buildings within the unfinished interior surfaces of the perimeter walls, floors and ceilings of the individual units:
(i) initially installed in accordance with the original plans and specifications, or replacements of like kind or quality as those initially installed; or
9ii) As existed at the time the unit was initially conveyed, if the original plans and specifications are not available.
(d) Floor coverings, wall coverings, and ceiling coverings within individual units, if your Condominium Association Agreement requires you to insure it.
(7) But Buildings do not include:
(a) Floor coverings, wall coverings and ceiling coverings within individual units except as provided under b. (6) (d) above:
(b) Electrical fixtures, appliances, air conditioner or heating equipment, water heaters or built-in cabinets which are located within an individual unit and which the unit owner is required to repair or replace, and
(c) Personal property owned by, used or in the care, custody or control of a unit owner except for personal property listed in paragraph b. (6) above.
With respect to coverage for fixtures, installations and additions provided in paragraph b. (6) above, each unit-owner will be considered an additional insured.
B. The following are deleted from Section A.4., Additional Coverages:
(h) Theft Damage to Buildings
(i) Brands and Labels; and
(j) Consequential Damage.
C. The following are added to Section E., Loss Conditions:
9. Unit-Owners Insurance
A unit-owner may have other insurance covering the same property as this insurance. This insurance is intended to be primary, and not to contribute with such other insurance.
10. Waiver of Rights of Recovery
We waive our rights to recover payment from any unit-owner of the condominium that is shown in the Declarations.