When both the Condominium Association form and the Condominium Unit Owner apply to a loss, the claim is paid as follows:

In a scenario where both the Condominium Association policy and the Condominium Unit Owner policy apply to a loss, the Condominium Association policy is typically considered primary. This means that in the event of a claim, the association's policy will respond first to cover the loss. The rationale behind this is that the association's policy generally covers common areas and liabilities that affect all unit owners collectively, while the unit owner’s policy is designed to cover the individual owner's property and personal liabilities.

In practice, this reflects the structure of condominium ownership, where the association manages shared spaces and is responsible for ensuring those areas are protected, while individual owners maintain insurance for their personal property and improvement within their units. Therefore, when both policies are in play, the Condominium Association's coverage will pay out first, and if there are remaining amounts not covered, the unit owner’s policy may then come into play to cover additional losses, up to its limits.

Thus, understanding the hierarchy of coverage in condominium insurance helps clarify the roles each policy plays in the event of a claim and ensures proper protection for both shared and individual interests in a condominium setting.