Tower Group offers a Package Policy to condominium associations. The Tower Group Package 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 Tower Group Package Policy will include standardized policy form CP0017 which defines Building Coverage as follows:
CONDOMINIUM ASSOCIATION COVERAGE FORM
Various provisions in this policy restrict coverage. Read the entire policy
carefully to determine rights, duties and what is and is not covered.
Throughout this policy the words "you" and "your" refer to the Named Insured
shown in the Declarations. The words "we," "us" and "our" refer to the
Company providing this insurance.
Other words and phrases that appear in quotation marks have special meaning.
Refer to SECTION H - DEFINITIONS.
We will pay for direct physical loss of or damage to Covered Property at
the premises described in the Declarations caused by or resulting from
any Covered Cause of Loss.
1. Covered Property
Covered Property, as used in this Coverage Part, means the type of
property described in this section, A.1., and limited in A.2.,
Property Not Covered, if a Limit of Insurance is shown in the
Declarations caused by or resulting for which a Limit of Insurance is
shown in the Declarations for that type of property.
a. Building, meaning the building or structure described in the
(1) Completed additions;
(2) Fixtures, outside of individual units, including
(3) Permanently installed:
(a) Machinery; and
(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
(5) 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
(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) 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
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.(6) above.
b. Your Business Personal Property located in or on the building
described in the Declarations or in the open (or in a vehicle)
within 100 feet of the described premises, consisting of the
(1) Personal property owned by you or owned indivisibly by all
(2) Your interest in the labor, materials or services furnished or
arranged by you on personal property of others;
(3) Leased personal property for which you have a contractual
responsibility to insure, unless otherwise provided for under
Personal Property of Others.
But Your Business Personal Property does not include personal
property owned only by a unit-owner.
CP 00 17 06 95
What is covered by the building?