Insurance policies on your condominium are a contract

An insurance policy is a contract between you (the condominium association) and your insurer.

You both sign off on the contract. You pay the consideration or the premium for the contract and the Insurance company agrees to pay you when they feel that the contract terms have been met.

So why is there so many arguments over what is covered? The terms are pretty much the same, and almost every line has been reviewed and argued in court. It should be a little more black and white to me.

I just finished reading a judgement on a court case

Salisbury Condominium vs. Travelers

The lengthy case basically says that the unit owners were seeking coverage under a section of theĀ  policy that did not meet the contract. They were looking for coverage under a property claim and a bodily injury claim under the directors and officers section that does not cover those types of claims.

That is a lot of legal mumbo jumbo, but the underlying issue here is that it is a contract with specific terms and you can’t expect to get paid for something that you were not contracted for.


the long and short of it is that the court said that Travelers was right and the language was not un ambiguous. Now the next time someone ( unit owners) thinks they are right, They will try it again. The strange part is, that it might have a different outcome.

So WHY is the contract so complicated?


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