Condominium
Plain-English definition and practical context.
Definition: Condominium | ()
pronunciation: kon-duh-MIN-ee-um
In flood insurance, a condominium refers to a property ownership structure in which each unit owner holds separate ownership of their individual unit, along with an undivided interest in the building’s common elements.
Common elements typically include the building structure, foundation, roof, exterior walls, shared utilities, hallways, and other areas or facilities used by all unit owners. These shared elements are usually maintained and managed by a Condominium Association.
This distinction is important because flood insurance coverage for condominiums is often divided between:
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Association-level coverage for the building and common elements, typically provided under a Residential Condominium Building Association Policy (RCBAP), and
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Unit-owner coverage, which may insure interior improvements and personal property within an individual unit.
Flood insurance rules, coverage limits, and claim handling for condominiums differ from those for single-family homes, making correct classification critical.
Sources & Authority
Sources for Condominium
Defines condominium ownership, common elements, and NFIP flood insurance requirements for associations and unit owners.