1. Forms
2. CP
3. CP-00-17

What the form is

The CP 00 17, titled Condominium Association Coverage Form, is a standard Insurance Services Office (ISO) commercial property form designed to insure the property of condominium associations. It covers direct physical loss or damage to buildings, business personal property, and other property owned by the condominium association or owned indivisibly by all unit owners. This form is specifically tailored to the unique ownership structure of condominiums, where common areas and building structures are collectively owned. Crucially, the coverage provided by the CP 00 17 is primary, meaning it pays before any insurance carried by individual unit owners for the same property. The form also includes a provision waiving the insurer's rights to recover payments from any unit-owner of the condominium.

Classes of business it applies to

This form is used for condominium associations, which can include a variety of property types:

• Residential condominium associations (e.g., apartment-style buildings, townhouses, lofts, high-rises).
• Commercial condominium associations (e.g., office condominiums, retail or industrial condominiums).
• Mixed-use condominium associations that may have both residential and commercial units.

For example, a multi-story building where individuals own their specific apartment units but share ownership of the hallways, roof, lobby, and recreational facilities would be insured by the condominium association using the CP 00 17 for these common elements. Similarly, an office park where businesses own their individual office units but the association owns the land, parking lots, and exterior structures would also use this form.

Special considerations

Several important considerations apply when using the CP 00 17:

• Condominium Documents are Key: The condominium association's declaration, bylaws, or agreement plays a critical role in determining the extent of coverage. These documents typically define what property the association is responsible for insuring (e.g., the building structure, common areas) versus what individual unit owners must insure (e.g., personal contents, unit improvements and betterments). The CP 00 17 specifically states that it covers fixtures, improvements, alterations, and appliances within an individual unit only if the Condominium Association Agreement requires the association to insure them.
• Distinction from Other Forms: It's essential to differentiate the CP 00 17 from the CP 00 10 Building and Personal Property Coverage Form (used for general commercial property) and the CP 00 18 Condominium Commercial Unit-Owners Coverage Form (used by owners of commercial condominium units). For instance, some insurers, like Citizens Property Insurance Corporation in Florida, mandate the use of CP 00 17 for condominium associations and will not accept it for cooperative or homeowner associations, which should typically use the CP 00 10.
• Primary Coverage: The CP 00 17 explicitly states that the association's insurance is primary and not contributory with insurance carried by individual unit owners. This coordinates with unit-owner policies (like the HO 00 06 for residential units or CP 00 18 for commercial units) which typically provide excess coverage over the association's policy.
• Waiver of Subrogation: The form includes a waiver of the insurer's right to recover payments from unit owners, which helps prevent internal disputes within the condominium community after a loss.

Key information for agents and underwriters

Agents and underwriters must pay close attention to the following when dealing with the CP 00 17:

• Thorough Review of Association Documents: The single most important underwriting step is to obtain and carefully review the condominium association's bylaws and other governing documents. This will clarify the association's insurance responsibilities and help determine the correct limits and coverages needed, preventing potential E&O claims arising from underinsurance or coverage gaps.
• Defining "Building" and "Business Personal Property": The CP 00 17 has specific definitions for what constitutes the covered Building and Your Business Personal Property. For example, "Building" coverage can extend to fixtures and appliances within individual units if mandated by the association agreement. "Your Business Personal Property" is defined to include property owned by the association or indivisibly by all unit owners, but explicitly excludes personal property owned solely by an individual unit owner.
• Coordination with Unit-Owner Policies: Ensure that the association's coverage under CP 00 17 and the unit-owners' individual policies (e.g., HO 00 06 or CP 00 18) are properly coordinated to avoid gaps or overlaps. The primary nature of the CP 00 17 is a key element in this coordination.
• Valuation: Loss valuation provisions are adapted for condominiums. Understanding how property is valued (e.g., Replacement Cost vs. Actual Cash Value) and how deductibles apply is crucial.
• Optional Coverages: Various optional coverages can be endorsed onto the policy to meet the specific needs of the condominium association, such as Ordinance or Law coverage or coverage for specific perils.