Residential Condominium Building Association Policy

This page is a rough draft and will need more work before it's finalized.

This page contains details about NFIP New Business. Find more in the How To Write section of the NFIP Flood Insurance Manual.

Policy Guide

Standard Flood Insurance Policy

Applications

Equinox Procedure
Waiting Periods : Occupancy Foundations : Discounts

New Business

Elevation Certificates
Primary Residence
BRCV : Venting : Condos

Renewals

Equinox Procedure
Billing Changes

Changes

Equinox Procedures
Mortgagee : Insured
Transfer of Ownership
Coverage Limits

Cancellations

Equinox Procedure
Request Forms : Signatures
Reasons : Documents

This page describes the NFIP approach to residential condominium buildings.
For information about the legal obligations outlined in the Policy Form, refer to the RCBAP page.

Definition and Purpose

• The Residential Condominium Building Association Policy (RCBAP) is designed to provide flood insurance coverage for residential condominium buildings owned by condominium associations.
• It insures the entire building and its contents owned collectively by the association, offering comprehensive protection under the NFIP.

Eligibility

1. Policyholder Eligibility:
   • The policyholder must be a condominium association.
   • Legal documentation confirming condominium association status is required if the name does not clearly reflect the entity type.
   • Homeowners Associations (HOAs) structured as condominium ownership and requiring flood insurance for their members are also eligible.
2. Building Eligibility:
   • The building must be a residential condominium or a mixed-use building where non-residential areas make up less than 25% of the total floor area.
   • Residential condominium buildings used as hotels, motels, or short- or long-term rentals are eligible.
   • Timeshare properties in condominium ownership qualify.
   • Townhouses or rowhouses owned by a condominium association are eligible for full-building coverage under the RCBAP.

Coverage

• Coverage applies to:
  • Buildings and individually owned units.
  • Improvements within units, including fixtures, machinery, and equipment.
  • Contents owned collectively by the condominium association.
• A separate policy is required for each building owned by the condominium association.

Program Eligibility

• Only buildings within communities participating in the Regular Program are eligible for the RCBAP.
• In Emergency Program communities, alternative forms like the Dwelling or General Property Form must be used depending on the number of units.

Key Points for Agents

• Documentation Requirements:
  • Include copies of association bylaws or other legal proof of condominium ownership.
  • Ensure policy applications detail the insured building location and specific property descriptions.
• Exclusions:
  • Buildings in cooperative ownership are not eligible.
  • HOAs that do not qualify as condominium ownership entities are ineligible.

The RCBAP ensures that condominium associations can secure adequate flood insurance for their residential properties, offering a tailored solution under the NFIP framework.