What it does
CG 20 04 amends Who Is An Insured to include each individual unit owner of the insured condominium, but only for liability arising out of the ownership, maintenance or repair of that portion of the premises not reserved for the unit owner's exclusive use or occupancy, meaning the common elements.
Who needs it
Condominium associations. Because unit owners share ownership of the common areas, an injury in a lobby, parking lot or pool can produce claims against individual owners; this endorsement gives them protection under the association policy.
Key provisions and limits
- No schedule; all unit owners qualify automatically.
- Units and limited common elements reserved for an owner's exclusive use are not covered; that exposure belongs on the unit owner's own policy (for example an HO-6).
- Coverage applies only to the extent permitted by law.
- Contract-based limits: coverage is no broader than any contract requires, the most paid for the additional insured is the lesser of the contract-required amount or the policy limits, and the endorsement does not increase limits.
Quoting and selling notes
- Standard for condominium association package quotes; confirm the carrier includes it.
- Townhouse and homeowner associations use CG 20 17 instead.
