Condominium unit owners also have an undivided interest with other unit owners in common areas of property. Common areas of property could include the land, stairways, halls, parking and storage areas, and the heating and cooling system. The unit owner's responsibilities are usually outlined in the condominium agreement and bylaws. The major loss exposures for unit owners are loss to real property, loss to personal property, and legal liability. Dwelling This coverage applies to the insured's real property, which is the unit.
Coverage is provided on a named perils basis and is separated into four categories.
The first category includes alterations, appliances, fixtures, and improvements that are part of the building and contained within the residence premises such as built-in appliances and cabinets, electrical fixtures, and similar items of this nature. The second category relates to items of real property that pertain exclusively to the residence premises, such as exterior glass or trees and shrubs that may be located on a patio that is part of the residence premises. The third category includes property that is the responsibility of the unit owner to insure under an agreement of a corporation or association of property owners. Insurance for this category of property provides coverage for any portion of the common areas of the building that the association agreement states is the insurance responsibility of the unit owner. The final category of property relates to structures owned solely by the insured at the location of the residence premises but are not a part of the residence premises.