Final answer:
Condominium associations must maintain property insurance for common areas, while individual unit owners are responsible for insuring the interiors of their units. Associations often require proof of individual insurance to ensure community-wide protection. (Option D).
Step-by-step explanation:
Condominium associations are typically required to maintain property insurance for common areas but not for the interiors of individual units.
This means that the association's insurance policy would cover areas and facilities shared by all residents, such as lobbies, pools, gyms, and the exterior of the building, including the roof and outer walls. However, the unit owners are generally responsible for obtaining their own insurance policies to cover the contents and interior structures such as walls, floors, and fixtures within their individual condominium units.
It is also common for condominium associations to require unit owners to provide proof of their insurance to ensure that interiors and personal possessions are covered, as the association's insurance will not extend to these areas.
This helps in mitigating the risk for all members of the condominium community by ensuring that all individual units are adequately insured, protecting the financial stability and liabilities of the collective association and its members. (Option D).