Summary: The AAIS commercial property program includes forms to cover condominium buildings (CP-19) and commercial condominium unit-owners (CP-21). As described earlier see AAIS Commercial Property Program; the AAIS program uses a modular approach. In this case the appropriate condominium form is combined with a perils part, conditions, and endorsements to form a policy.

The pages that follow describe the general features of the condominium coverage parts.

Topics covered:

Insuring agreement and covered property Property excluded and limitations Additional coverages Perils Supplemental coverages Loss conditions Valuation How much we pay Loss payment Commercial property coverage conditions, CP-100 Other conditions Coverage for unit-owners

Insuring Agreement and Covered Property

We cover direct physical loss to covered property at the premises described on the declarations caused by a covered peril.

PROPERTY COVERED

We cover the following types of property for which a limit is shown on the declarations.

BUILDING PROPERTY

This means buildings and structures described on the declarations, including:

1.     completed additions;

2.     fixtures, machinery, and equipment which are a permanent part of the described building or structure;

3.     outdoor fixtures;

4.     personal property owned by you and used to maintain or service the described building or structure or its premises, including air-conditioning equipment; fire extinguishing apparatus; floor coverings; and appliances for refrigerating, cooking, dish washing, and laundering;

5.     if not covered by other insurance;

a.     additions under construction, alterations, and repairs to the building or structure; and

b.     materials, equipment, supplies, and temporary structures, on or within 100 feet of the described premises, used for making additions, alterations, or repairs to the building or structure.

6.     the following property contained within a unit, regardless of ownership, if required by your Condominium Association Agreement to insure:

a.     fixtures, improvements, and alterations that are a part of the building or structure; and

b.     appliances for refrigerating, cooking, dishwashing, laundering, security, or housekeeping.

This does not include personal property owned by, used by, or in the care, custody, or control of a unit-owner except as provided in paragraph 6. above.

BUSINESS PERSONAL PROPERTY

This means your business personal property in the buildings and structures described on the declarations or in the open (or in vehicles) on or within 100 feet of the described premises. Unless otherwise specified on the declarations, this includes:

1.     your interest in personal property of others to the extent of your labor, material, and services;

2.     personal property owned by you or owned indivisibly by all unit-owners; and

3.     leased personal property which you have a contractual responsibility to insure, unless otherwise insured by the Commercial Property Coverage under Personal Property of Others.

Your business personal property does not include personal property owned solely by a unit-owner.

PERSONAL PROPERTY OF OTHERS

This means personal property of others:

1.     that is in your care, custody, or control; and

2.     located in the buildings and structures described on the declarations or in the open (or in vehicles) on or within 100 feet of the described premises.

However, our payment for loss to personal property of others is only for the benefit of the owners of the personal property.

Analysis

While the CP-19 covers much the same building property as the CP-12 (Building and Personal Property form), it has been modified to meet the special needs of a condominium association. It agrees to cover, as building property, certain items—regardless of who owns them—if the condominium association agreement requires the association to cover it. Such items include things that are part of the building, such as fixtures, improvements, and alterations. Also covered as building property are certain appliances like refrigerators, stoves, dishwashers, laundry equipment, and housekeeping items. Again, the CP-19 covers these only if the association agreement requires it.

Where the CP-12 agrees to cover the insured's use interest in improvements and betterments as business personal property, the CP-19 substitutes personal property that the association owns or that all the unit-owners own indivisibly. Property owned by the association might include items at a swimming pool or in a clubhouse.

Finally, like the CP-12, the CP-19 covers the property of others under certain circumstances.

Property Excluded and Limitations