Flood Insurance for Condominiums

Condominium Associations, in a Regular Program community, can purchase flood insurance coverage on a residential building and its contents under a Residential Condominium Building Association Policy (RCBAP).

In addition to providing coverage for residential condominium buildings without imposing the burden of purchasing individual policies for each unit, the RCBAP expands the eligibility requirements to include all types of residential condominium buildings owned by the association, including:

  • Garden apartment-type construction
  • Townhouses
  • Rowhouses
  • Single-family detached buildings
  • owned by the association
  • Fee interest timeshare buildings

The RCBAP Provides Greater Coverage for Less Premium
Building coverage is provided on a replacement cost basis. A co-insurance clause requires the condominium association to insure its building to at least 80 percent of the replacement cost value, in order to avoid uninsured losses.

Cost-effective flood insurance protection is provided by insuring all units in a condominium building under a single policy requiring only one deductible, creating a cost savings to unit owners.

Unit Owners’ Coverage — Building and Contents
An individual dwelling unit in a condominium building, defined as a single-family residence, may also be insured under the Standard Flood Insurance Policy — Dwelling . An individual unit and its contents may be separately insured by the unit owner.

Unit owners need to be aware that, if for any reason a condominium association elects to discontinue its RCBAP, individual unit owners may be responsible for covering flood damage. That is why having flood insurance and proper coverage is important for all residents living in condominium buildings, including high-rise condominiums. It doesn’t matter if you live on the first, third, or tenth floor, every unit owner has an undivided interest in the common elements of the building and can be assessed for unpaid damages to common areas even if their own unit remains undamaged. Also, condominium by-laws require all unit owners to be assessed for uninsured damages to common areas of a building if damaged by flood.

Non-Residential (Commercial) Condominiums
Building and Contents — Non-residential (commercial) condominium buildings and their commonly owned contents may be insured in the name of the Association under the General Property Form. The “Non-Residential” limits apply.

Unit Owners’ Coverage (Contents) — The owner of a non-residential condominium unit may purchase contents coverage only for that unit. Building coverage cannot be purchased in the name of the unit owner.


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