Insurance For Condominiums

Insurance lawyers practicing law in urban areas will usually be around a lot of condominiums.  Most people do not realize there is insurance that is specifically for condominiums.

Two Insurance Services Office (ISO) commercial property forms have been designated for condominium property exposures:

  1. Condominium Association Coverage Form; and
  2. Condominium Commercial Unit – Owners Coverage Form

The condominium association coverage form provides coverage on three categories of property:

– the insured building

-business personal property of the named insured

– personal property of others

This is set out in the 1994, Austin Court of Appeals opinion styled, Johnson v. Garza, involving a claim by a condominium association regarding fire loss.

In contrast to condominium association coverage, only non-residential condominium unit owners are eligible for coverage under the condominium commercial unit owners coverage form.  Because a condominium unit owner generally has no need for building insurance in his or her name, the form includes coverage only for the business personal property of the owner and personal property of third parties.