Spaces:
Running
Running
# II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
## C. Condominium Project Approval
### 2. Project Eligibility
#### vii. Insurance Coverage
The Condominium Project must be insured to FHA standards as well as any applicable state and local condominium requirements.
The insurance policies must list the Condominium Association as the named insured, or in the case of an affiliated Condominium Project or Condominium Association, the name of the affiliated Condominium Project or Condominium Association may be listed as a named insured.
##### (A)
##### (B)
#### Hazard Insurance
##### (1) Definition
Hazard Insurance refers to insurance coverage that compensates for physical damage by fire, wind, or natural occurrences.
##### (2) Standard
The Condominium Association must have a master or blanket Hazard Insurance policy in place for the entire Condominium Project. The Condominium Association’s master or blanket Hazard Insurance policy must be in an amount to fully cover the insurable replacement cost of all Units and all insurable Common Elements in the Approved Condominium Project.
Any policy with a coinsurance clause must include an agreed amount endorsement, selection of the agreed value option, or an amount of coverage to fully cover the insurable replacement cost of all Units and all insurable Common Elements in the Approved Condominium Project.
Any pooled insurance policy must satisfy the insurance coverage standard for each Condominium Project insured under the policy.
##### (3) Required Documentation
The following documentation must be submitted:
- Form HUD-9992;
- Certificate of insurance or a complete copy of the insurance policy; and
- If applicable, acceptable evidence of the replacement cost value.
#### Liability Insurance
##### (1) Definition
Liability Insurance refers to insurance that protects against legal claims.
---
**Handbook 4000.1**
Last Revised: 01/795
10/2025