June 2023

insurance definition. It is essential to realize these definitions do not always track the same regarding responsibility. For insurance, the unit owner may be responsible to maintain parts of the building the association is responsible to insure, and likewise, the association may be responsible to ensure parts of the building and units that a unit owner may own and have the responsibility to maintain. This is where there is the most confusion when it comes to uninsured damages. It is important to work with your com munity manager and your insurance professional to understand your cover ages and responsibilities. In the association documents is where you will find the coverages that your community is required to maintain. Fee simple is where an association does not provide any property coverage other than for common elements. With these types of master policies, the associa tion’s policy is going to cover the asso ciation liability along with property for common areas only. When the master policy is fee simple, every unit owner in the community will need to purchase their own insurance, commonly referred to as a Homeowners Policy (HO3). This coverage will include property coverage for all structural portions of the owner’s dwelling, including exterior and interior. In addition, this policy will include coverage for, but is not limit ed to, homeowner’s lability, personal CONTINUES ON PAGE 32 “This is where there is the most confusion when it comes to uninsured damages.”

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JUNE 2023