8 ADJUSTINGTODAY.COM The “HO-6” unit-owners policy developed by the Insurance Services Office (ISO) includes coverage for damage to appliances, fixtures, alterations and improvements within the dwelling space of the insured unit-owner. (Most policy forms used by property/casualty insurers in the U.S. are either developed by ISO or modeled after ISO forms.) The HO-6 base form provides no coverage for the basic building structure, but does cover fixtures and permanent additions within dwelling units. As we’ve seen, however, some condominium agreements assign ownership of fixtures in units, and/or the duty to insure them, to the association. For these situations ISO’s condominium association CP policy automatically extends property coverage to appliances, fixtures, alterations and improvements within dwelling units when the condominium agreement requires the association to insure them. In addition, the ISO condominium association policy explicitly states that its policy provides primary coverage first before any other policy. If the association’s limit is sufficient, the unit-owners’ policies will not have to pay for damage to building property within units. Taken together, these insurance provisions are designed to make clear which insurance policy responds to damage to building features within units. Whether it does or not depends on whether a condominium agreement clearly delineates ownership interests and insurance responsibilities — and whether the respective insurers have departed from the use of ISO wording. General Liability Anyone who acquires a unit in a condominium or co-op community will be required to have personal liability insurance for any bodily injury they cause to staff, other residents or guests, and for any damage they cause to property of the community, other residents or guests. Personal liability insurance is required under master agreements to protect the interests of the community and its residents, and by mortgage lenders who want to avoid having their collateral encumbered by liability judgments.
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