We have a consumer customer that owns a condo in a complex. The building the condo is in has 16 units. The condo association has a policy that covers the complex. The complex went to a private policy. When we received the policy, it is broken out into two separate policies. Through conversation with the insurance agent, he informed us that one is the "Primary Policy" and one is an "Excess Policy". Both policies are through the same insurance company. They state they separated the two because of rate. The coverage amount on the Primary Policy is $250,000 per occurrence per building and the RCV on the building is $1,384,000. The coverage amount on the Excess Policy is $1,303,000 in excess of $250,000 per occurrence per building. According to the agent, both of the policies are follow form, so if one it floods and the primary policy covers it so will the excess. My question is has anyone else dealt with this, and if so what is the amount of coverage - $250,000 or $1,303,000?
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CRCM, CAMS