Condominium Building Damage Coverage Depends on Policy Wording

October 31, 2011

 

The subject property is a commercial condominium. There is a layer of texture on the cement surface, which is separate from the paint. Cracks have occurred on the surface of each of the buildings.

We have received an umpire's award that included money to replace the layer of texture. The carrier still refuses to pay, arguing that they are not responsible for the building's exterior. Our position is that it is a separate exterior application that cannot be patched if the property is to maintain a consistent look throughout.

Any thoughts and/or guidance is appreciated.

Florida Subscriber

If the policy is the unit owner's, and it is the same as the standard ISO form, CP 00 18, then coverage for the building would not be available, so, the insurer would be correct in saying that it is not responsible for the texture on the cement on the outside of the building. If it is the association policy and has the same wording as the standard ISO form, CP 00 17, then that should be covered as part of the building.

 

If the bylaws require the unit owner to be responsible for the unit's exterior, it still would not be covered under a standard ISO unit owners form. If that is the case, then the insurer would not be required to pay for the exterior damage.