Does Your Master Policy Cover Improvement & Betterments?
All-in policies or “Per the Condominium Documents”
Condominium’s represent a different form of ownership. When you purchase a unit and improve that unit there are always questions over what the master policy covers and what the unit insurance covers. The master policy will either cover unit improvements “based on the policy wording” or “per the condominium documents”. “Policy wording” means somewhere in the insurance policy there is a clause that defines whether improvements made by unit owners are covered or not covered. “Per the condominium documents” claims mean that the insurance company refers to the insurance section in your condominium documents. If the condominium documents require the trustees to insure unit improvements they are covered. If the condominium documents do not require the trustees to insure unit improvements or the documents are ambiguous you have “bare-wall coverage”.
As a service to you our office has reviewed every master policy and determined how Improvements and Betterments are covered. You will find our definition in the middle of every condominium certificate where it says “How are unit improvements and betterments insured?” Our definitions are All-in per Condominium Documents, Per Condominium Documents, All-in, and Original Specs.
This means the master policy will insure any improvements to the building made by unit-owners. Even though the unit-owner might have spent large sums of money to modernize the kitchen and bath, the improvements would be covered on the master policy. The unit owner doesn’t need to insure the improvements on a homeowner’s policy. The insurance companies that offer “all-in” coverage usually do so with an endorsement. See the sample policy forms on our website.
All-in per Condominium Documents
The insurance policy refers to the insurance section of the condominium documents to interpret what is covered on the master policy. If you see “all-in per condominium documents” it means we have interpreted the master policy condominium documents and feel it will adequately cover all improvements made by unit-owners.
Per Condominium Documents
The insurance policy refers to the insurance section of the condominium documents to interpret what is covered on the master policy. If you see “per condominium documents” it means we have interpreted the master policy condominium documents and feel there is either no coverage for improvements made by unit-owners or the condominium documents are too ambiguous.
Coverage only includes property in “units” and private storage areas which were initially installed in accordance with your condominium’s original plans and specifications. If you have original specification coverage it means improvements or betterments are not covered on your master policy.
Check out our condominium documents archive. You’ll find an extensive list of the condominium documents we have scanned. If you don’t see your association then send us your documents and we’ll be happy to add them to the list.
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