[WSBARP] Condo Insurance per WUCIOA RCW 64.90.470

[Craig Gourley]

Check out RCW 64.90.75 and see if you are exempt from WUCIOA on your facts.

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Terrance Wilson
Sent: Tuesday, June 30, 2020 8:22 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Condo Insurance per WUCIOA RCW 64.90.470

Our firm is handling a large volume of DADU/ADU Condos in the Seattle area, and an issue regarding the type of required insurance continues to be raised. 64.90.470.2 states that a building that contains units divided by vertical boundaries that comprise common walls between units must maintain insurance as provided under 64.90.470.1.a, which must insure the units and, unless provide otherwise in the Delcaration, all improvements and betterments to the units.  As some in this group may know, the ADU plans under current code may only "attach" to the primary structure by means of a breezeway that is accessed from the exterior of the units.  In other words, the ADU is not particularly attached in any functional or meaningful way, other that it meets building code for ADU attachment requirements.  The issue and question is whether the Association must be tasked with maintaining the insurance policy for the primary and ADU, or if the unit owners can maintain their own individual policies?

64.90.470.2 seems to only require the Association to provide such coverage when the units share a "common wall", but I don't see this term defined, and the typical ADU's we are seeing to not square up with traditional condo units that truly share betterments or infrastructure, including shared common walls.  Even if the ADU design is to be considered to contain a common wall, the code then refers the reader to 64.90.470.1.a which states that the insurance type that is required is that which would cover the common elements. Many, if not most, of these "air-space" type condo communities do not have any common elements.  Common elements are defined as any areas not included within the units themselves. In the ADU air-space condo design, there are often no areas designated as common elements.

Our clients would prefer to have unit owners under the above scenarios maintain their own policies and keep the Associations as minimalistic as possible.  WUCIOA required fidelity insurance minimum premiums may only be a few hundred dollars, whereas full coverage for units and their betterments will be several thousand.  Does anyone have any experience in this area of the weeds of WUCIOA? While there is language around insurance needing to be reasonably available and subject to reasonable deductibles, I would like to know what is the best practice in this area.

Best regards,


Terrance Randall Wilson, Managing Partner

Attorney at Law



Wilson Law Group of WA

(206) 550-3189 - Cell

(206) 805-6238 - Office


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