Travelers Insurance Company offers a businessowner policy to condominium associations called their SelectPac.
The Travelers SelectPac 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.
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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CONDOMINIUM ASSOCIATION COVERAGE
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE PART
A. The BUSINESSOWNERS PROPERTY COVERAGE SPECIAL FORM is changed as follows:
1. Paragraph A.1.a. is replaced by the following:
a. Building, meaning the building or structure described in the Declarations, including:
(1) Completed additions;
(3) Fixtures, outside of individual units, including outdoor fixtures;
(4) Retaining walls, whether or not attached;
(5) Permanently attached:
(a) Machinery; and
(6) 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) Lobby and hallway furnishings;
(d) Floor, wall and ceiling coverings;
(e) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering, that are not contained within individual units;
(f) Lawn maintenance or snow removal equipment;
(g) Personal property used for maintaining and servicing of pools and other recreational facilities on the premises; and
(h) Alarm systems;
(7) Outdoor swimming pools, associated structures and appurtenant structures and equipment, including pumps;
(8) If not covered by other insurance:
(a) Additions under construction, alterations and repairs to the building or structure; and
(b) Materials, equipment, supplies and temporary structures, on or within 1,000 feet of the described premises, used for making additions, alterations or repairs to the building or structure; and
(9) 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 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 (9) above.
2. Paragraph A.1.b. is replaced by the following:
b. Business Personal Property located in or on the buildings described in the Declarations or in the open (or in a vehicle) within 1,000 feet of the described premises, including:
(1) Property owned by you or owned indivisibly by all unit-owners;
(2) Your interest in the labor, materials or services furnished or arranged by you on personal property of others;
(3) Property of others that is in your care, custody or control; and
(4) "Money" and "securities".
Business Personal Property does not include personal property owned only by a unit-owner, unless it is in your care, custody or control as covered in Paragraph (3) above.
3. The following is added to Paragraph E.:
a. Unit-Owner's 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.
b. Insurance Trustee
If you name an insurance trustee, we will adjust losses with you, but we will pay the insurance trustee. If we pay the trustee, the payments will satisfy your claims against us.
4. The following is added to Paragraph F.9.:
a. 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, except for losses that are payable under the Employee Dishonesty or Forgery or Alteration Additional Coverages.
B. The COMMERCIAL GENERAL LIABILITY COVERAGE FORM is changed as follows:
1. The following is added to SECTION II – WHO IS AN INSURED:
a. Each individual unit-owner of the insured condominium, but only for liability arising out of the ownership, maintenance or repair of that portion of the premises which is not reserved for that unit-owner's exclusive use or occupancy.
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