Condo association policy does not adequately insure the damages to the common areas. There is a $150,000 loss to the common areas and a $2,000 assessment per condo unit owner. You are adequately insured but only 75% of other condo units have adequate coverage. How will your insurance respond?

Condo association policy does not adequately insure the damages to the common areas. There is a $150,000 loss to the common areas and a $2,000 assessment per condo unit owner. You are adequately insured but only 75% of other condo units have adequate coverage. How will your insurance respond?

• A. 75% of 2,000 as only 75% of other unit owners have adequate coverage
• B. 2,000 less 500 deductible
• C. 112,500
• D. 15,000

Answer: (C)