What it does
CP 04 18 attaches to the Condominium Commercial Unit-Owners Coverage Form (CP 00 18), or its Standard Property Policy version. It offers two optional coverages by scheduled unit:
- Loss Assessment: pays the insured's share of an assessment charged to all unit-owners by the condominium association. The assessment must be made during the policy period and result from covered direct physical loss to property in which each unit-owner has an undivided interest. The policy-period condition is set aside so assessments made during the term count.
- Miscellaneous Real Property: covers building items the unit-owner must insure under the condominium documents, beyond what CP 00 18 covers.
Key provisions
- Each coverage has its own limit and premium. Loss assessment has its own deductible.
- Assessments resulting from the association's own insurance deductible are limited to $1,000 per unit unless a higher sub-limit is scheduled.
- No other policy deductible applies to loss assessment except as stated.
Quoting and selling notes
- Association master policies increasingly carry large deductibles, especially wind and named-storm deductibles, that are passed to owners by assessment. Raise the deductible sub-limit accordingly.
- Read the declaration and bylaws to see which unit components the owner must insure.
- Forms lists show 10 12 as the current edition in most states.
