You asked if condominium master policies are primary only for condominiums built since 1984. You also asked for background information on this issue.

Condominiums created after January 1, 1984 are generally controlled by the Common Interest Ownership Act (CIOA) (CGS §§ 47-200 – 47-295). Those created before that date are generally controlled by statutes that existed when they were created, unless they choose to operate under CIOA.

Under CIOA, the condominium association’s master policy is the primary policy for condominiums created since January 1, 1984. This means that if the association’s policy and other insurance in the name of the unit owner cover the same risk, the association’s policy provides primary coverage (i. e. , pays first). This applies to condominiums that are either cooperatives or have horizontal boundaries (CGS § 47-255(d)(4)).

The law does not require the master policy to be the primary policy for condominiums created before 1984 (CGS § 47-83). But, according to Attorney Matthew Perlstein, an expert in condominium law, the condominium’s declarations usually treat it as primary. Perlstein said most master insurance policies now purchased by condominium associations specify that they must be primary.

Condominium owners may insure their own units for their own benefit and many do so because mortgage companies typically require property insurance as a condition of sale (CGS § 47-255(f)). But the law does not require them to obtain insurance. An association may also require owners to obtain their own insurance, but it must include this requirement in its declarations.

The master policy must protect against loss to the common elements It may also cover the units, but it does not have to cover the owners’ improvements made to them (CGS § 47-255(a)-(b)). Usually, the condominium association’s declarations determine who pays the deductible on the master policy.

According to Perlstein, the association’s master policy is primary because if several units are damaged, the association must rebuild the units together. The coverage afforded by both unit owners’ policies and the master policy may overlap. Because the master policy is primary, the association can tap into the full coverage of its policy, rather than rely on unit owners’ individual policies.

KS: nf