Continuing my state-by-state review of mandatory condominium insurance requirements, this post will look at Delaware—The First State.

Condominium insurance regulations are listed in Section 81-313 of the Delaware Code. The section states that since the time the first unit is sold, the association shall maintain:

  1. Property insurance on the common elements and, in a planned community, also on property that must become common elements, 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 must be not less than 80 percent of the actual cash value of the insured property at the time the insurance is purchased and at each renewal date, exclusive of land, excavations, foundations, and other items normally excluded from property policies;
  2. 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 and, in cooperatives, also of all units; and
  3. Fidelity insurance.

The code also states that an insurance policy maintained by the association doesn’t prevent a unit owner from obtaining his or her own insurance to provide additional protection.

Additionally, the insurer waives its right to subrogation under the policy against any unit owner or member of the unit owner’s household.