Continuing my state-by-state review of mandatory condominium insurance requirements, this post will look at Pennsylvania—the Keystone State.

Condominiums in Pennsylvania are governed by the Pennsylvania Statutes section 3312. Per the statute, once the first unit is purchased, the association must obtain the following:

  • Property insurance on the common elements and units exclusive of improvements and betterments installed in units insuring against all risks of direct physical loss commonly insured against or, in the case of a conversion building, against fire and extended coverage perils. The total amount of insurance after application of any deductibles shall not be less than 80% of the actual cash value of the insured property exclusive of land, excavations, foundations and other items normally excluded from property policies.
  • Comprehensive general liability insurance, including medical payments insurance, in an amount determined by the executive board but not less than any amount specified in the declaration covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the common elements.
  • Any property or comprehensive general liability insurance carried by the association must contain a deductible provision.

The master insurance policy must provide that:

  • Each unit owner is an insured person under the policy with respect to liability arising out of his ownership of an undivided interest in the common elements or membership in the association.
  • The insurer waives its right to subrogation under the policy against any unit owner of the condominium or members of his household.
  • No act or omission by any unit owner, unless acting within the scope of his authority on behalf of the association, will void the policy or be a condition to recovery under the policy.
  • If, at the time of a loss under the policy, there is other insurance in the name of a unit owner covering the same property covered by the policy, the policy is the primary insurance not contributing with the other insurance.

A unit owner may obtain his or her own insurance despite the association’s insurance. A unit owner may wish to purchase his or her own insurance to cover personal property or losses not covered by the master policy due to a deductible provision in the master policy or for any other reason.