What it does
BP 17 03 adds two optional coverages for a commercial unit-owner:
- Loss Assessment – the unit-owner's share of an assessment charged to all unit-owners by the association during the policy period, as a result of direct physical loss to property in which each unit-owner has an undivided interest caused by a covered cause of loss. In the 01 06 edition, assessments that result from the association's own insurance deductible are capped at $1,000 per scheduled unit, and a separate per-unit loss assessment deductible applies.
- Miscellaneous Real Property – covers certain real property the unit-owner is responsible for that is not otherwise covered.
Who needs it
Any commercial unit-owner, especially in older or under-insured associations where a large loss could produce assessments.
Quoting and selling notes
- Ask for the master policy deductible and limits; high association deductibles are often passed to unit-owners by assessment.
