If both the Condominium Association Coverage form and the Condominium Unit Owners Coverage form cover a loss, which is true?

• A. Both forms pay equally
• B. The Unit Owner form is primary and the Association form is excess
• C. The two forms are prorated
• D. The Association form is primary and the Unit Owner form is excess

Answer: (D)

When two policies could respond to the same loss in a condo setting, the structure of coverage is designed to layer the protections. The Condominium Association Coverage form covers the building and shared/common elements, while the Condominium Unit Owners Coverage form covers the unit owner’s personal property, interior improvements and betterments, and liability related to the unit.

Because the association policy is arranged to respond first to damage that affects the structure and common areas, it pays as the primary coverage. The unit owners policy then acts as excess coverage, paying any remaining amount after the association’s limits have been exhausted, up to its own limits. This sequencing prevents double payment for the same loss and provides a clear payout order.

So, when both forms cover a loss, the Association form is primary and the Unit Owner form is excess.