An excerpt from “Watch Your Language” by Michael Berg, MBA, CIRMS, CMCA, originally published in the January/February 2019 edition of the OC View Magazine. Michael may be reached at michael@Berginsurance.com

If the association’s insurance policy is written with “per CC&Rs” language, as it relates to property attached to the interior of the unit, what is the association required to insure?  To interpret, we will need to define a number of terms including Unit, Condominium Building, fixture/installation/addition and original.  The conflicting language leads to questions about whether upgrades or original builder grade installations are covered.

The best protection is to have legal counsel review the CC&Rs along with an insurance agent or broker.  The insurance agent or broker can provide various samples of the coverage language available in the marketplace, and the attorney can provide an opinion regarding which option best applies to the coverage requirements of the community.  And from that, it is important to communicate the association coverage specifics to the membership.  This would apply to the current insurance for the community as well as the handling of future coverage decisions.  Watching your language can clarify terms and make the board, management and membership aware of insurance responsibilities.  This will save time and reduce conflict through the claims process.