The following endorsements are required for PUD and condominium projects:

  • Inflation Guard Endorsement, if available;
  • Construction Code Endorsement, if there is a construction code provision that would require changes to undamaged portions of the subject projects’ building(s) even when only a part of a building is destroyed by an insured hazard;
  • Steam Boiler and Machinery Coverage Endorsement, if the project has central heating or cooling. The minimum coverage per accident must be at least equal to the lesser of $2 million or the insurable value of the building(s) containing the boiler or machinery.  Separate stand-alone boiler and machinery coverage may be purchased in lieu of obtaining this endorsement.

In addition, policies covering a condominium project should provide that:

  • Insurance trust agreements will be recognized;
  • The right of subrogation against unit owners will be waived;
  • The insurance will not be prejudiced by any acts or omissions of individual unit owners that are not under the control of the homeowners association; and
  • The policy will be primary, even if a unit owner has other insurance that covers the same loss.

These provisions are usually covered by a Special Condominium Endorsement.