A: As a reinsurer, the Fund does not issue an insurance policy; but simply follows the policy form issued by the primary insurer.
A true condominium association is organized under the provisions of the Illinois Condominium Property Act. Generally, most condominium associations obtain insurance on the building as a whole under a commercial policy written in the name of the condominium association. With that policy in place, each individual unit owner also purchases a separate policy to insure their own improvements to the interior of their unit. In this arrangement, the limit of mine subsidence reinsurance available to the company that insured the condominium association policy would be the limit on the commercial policy, subject to the commercial maximum of $750,000. In addition, each living unit owner's individual policy could have $15,000 of mine subsidence reinsurance.
Other common-interest communities such as townhouse or homeowner associations are usually organized under the Illinois Code of Civil Procedure. Generally, each property owner obtains insurance to protect the full value of their residence. In this arrangement, the limit of mine subsidence reinsurance available is the limit on each policyholder's policy, subject to the residential maximum, presently $750,000 each.
Insurance requirements for the association and the individual property owners are usually defined in the bylaws or declarations of the association. A real estate attorney or insurance agent can provide more expert advice regarding the policy forms necessary to protect each party's insurable interest in the properties.