Insurance for Community Associations Articles
Property & Casualty Articles
- Smoking in Community Associations: Carey v. The 400 Erie Condominium Association (IL) April 19, 2024The Illinois Appellate Court’s ruling in Carey v. The 400 Erie Condominium Association, a recent Rule 23 opinion of the First Appellate District Court, provided guidance for handling smoking nuisance cases in condominiums, emphasizing that rules may permit smoking within units as long as it does not cause nuisance or unreasonable disturbance to others. Read the article…………………………….
- Landscaping and Covenant Enforcement (CO) April 19, 2024With spring being in full force and summer being just around the corner, we wanted to remind all Associations regarding policies, covenant enforcement and good practices as it relates to landscaping. Read the article…………………………….
- House passes bill making it easier for condo owners to install solar (CT) April 19, 2024The bill serves as an expansion of the solar rights of members of common interest communities, which include condominiums, community apartments, planned developments, etc. A provision in the State’s Clean Air Act, passed in 2022, already prohibited common interest communities from adopting or enforcing rules that would prohibit community residents from installing solar panels. That law did not, however, include condominiums or housing cooperatives. Read the article…………………………….
- In a luxe N.Y. condo, residents battle over dumping the Trump name April 19, 2024A referendum underway inside one New York condominium building has led to bitter divisions between once-friendly neighbors, who have handed out dueling information and lobbed accusations of wrongdoing back and forth as votes are tallied. Read the article…………………………….
Property & Casualty Article Archives
Directors & Officers Insurance Articles
- Director Elections—What Could Possibly Go Wrong? April 1, 2024Director elections are one of the most important powers association members have, so it makes sense that owners take elections seriously. Whether voting in an election and/or running for the board, the process and its results are personal to association members. Therefore, any appearance of impropriety or error in the process is oftentimes met with objection, suspicion, and unfortunately, hostility. Read the article…………………………….
- Board Member Code of Conduct (FL) March 30, 2024The law specifically provides that Board members have a fiduciary relationship with the owners and requires Board members to disclose conflicts of interest. However, the law does not specifically address acceptable (and unacceptable) behaviors for discharging these responsibilities. As such, a Code of Conduct for Board members is a good idea to have so that all Board members have a better understanding of their responsibilities as Board members and the limitations of their office. Read the article…………………………….
- Treasurer’s Payment Mistake Requires Defense Coverage Under Property Association’s D&O Policy March 28, 2024A federal court recently ruled that a carrier must defend its policyholder against a claim involving the treasurer’s erroneous payment to a scammer. The ruling shows that a “wrongful act” under a D&O policy need not be an egregious act of wrongdoing, that coverage may hinge on whether extrinsic evidence can establish coverage, and that breach of contract claims are not always uninsurable as a matter of law. Read the article…………………………….
- Business Judgment Rule: How to Protect Your Board (NY) March 18, 2024The recent case of Levy v. 103-25 68th Ave. Owners, Inc. offers some valuable insights for property managers and board members within cooperative housing communities. In June 2018, the Levys commenced this action against the co-op defendants and the occupants of the neighboring apartment, alleging, inter alia, that the co-op defendants exceeded the scope of their authority, discriminated against them for having children, and acted in bad faith. Read the article…………………………….
Directors & Officers Insurance Article Archives
Condominium Insurance Law
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- Thu, 18 Apr 2024 10:00:00 +0000: Beware of Claims Deadlines! Florida Condominiums Have Supplemental and Reopened Claims Statute Deadlines - Condominium Insurance Law
Florida is the only state to address and provide a statutory definition for a “re-opened claim” or a “supplemental claim.” Florida’s law is not a consumer protection law. Instead, it is an insurance company protection law. The current edition of Florida’s Supplemental and Reopened claims law reads as follows: “627.70132 Notice of property insurance claim.— (1) As used in... Continue Reading
- Tue, 13 Feb 2024 11:00:00 +0000: Colorado’s FAIR Plan Expands Safety Net for At-Risk Properties - Condominium Insurance Law
As Merlin attorney Jonathan Bukowski previously discussed, the Colorado Common Interest Ownership Act (CCIOA) sets forth specific minimum insurance requirements for common interest communities, such as condominiums and homeowners associations (HOAs). These requirements are designed to ensure that common elements and, in some cases, individual units are adequately insured. In addition to the CCIOA, in May... Continue Reading
- Fri, 09 Feb 2024 11:00:00 +0000: Understanding the Interplay Between an Individual Unit Owners’ Policy and Their HOA Policy is Crucial for Submitting Condominium and Townhome Claims in California - Condominium Insurance Law
Of the 39 million potential insureds making up California’s population, over 14 million – or over 35% – live in homeowners association communities. Therefore, understanding whether their property damage claims fall under their individual or association insurance policies is essential to properly recovering insurance benefits. Equally essential is understanding which policy takes priority when property... Continue Reading
- Thu, 25 Jan 2024 17:48:26 +0000: Is Deductible Buy-Down Insurance A Wise Choice For Condominiums? A Basic Guide For Association Boards and Property Managers - Condominium Insurance Law
Deductible buy-down insurance, also referred to as buyback deductible insurance, is designed to reduce the deductible that an insured party would have to pay in the event of a claim. It operates on a simple principle: by purchasing a deductible buy-down policy or endorsement, the insured party can reduce or even eliminate the deductible that... Continue Reading
- Mon, 11 Dec 2023 11:00:00 +0000: Florida Condo Associations: Dodging Floods and Drowning in Premiums? - Condominium Insurance Law
Well, folks, another hurricane season in Florida has come and gone, leaving us with nothing but a collective sigh of relief and the looming specter of potential disaster. In the spirit of commemorating the official end of hurricane season, I urge you to take a moment to reflect on your condo association’s insurance choices. Because... Continue Reading
Condominium Insurance Law Archives
General Liability Insurance Articles
- Understanding Community Association Security Measures and Liabilities April 16, 2024A recent article from the Community Associations Institute in the organization’s excellent Ungated blog focused on important security and liability issues for associations. It discussed how communities can be exposed to legal liabilities for negligent security and crimes occurring on association property. Read the article…………………………….
- Resident calls on the community for help, City and HOA said their hands are tied (OK) April 16, 2024An Owasso resident calls on the community to help fix a broken park bridge after the city and neighborhood HOA said their hands are tied. The bridge in the Three Lakes neighborhood is completely falling apart. With the unkept conditions, it’s a huge liability, and danger to the kids who play or those who want to enjoy a walk or a bike ride. Read the article…………………………….
- Family of deceased man files lawsuit against Pompano Beach condo for failing to protect its residents (FL) April 11, 2024The family of a deceased man is suing a Pompano Beach condominium, which they said, is responsible for the death of their family member. The family said 87-year-old Vincenzo Cammalleri died, and his friend is still badly ill, after getting infected with Legionnaires disease, a pneumonia that spreads when a bacteria is inhaled or when contaminated water is swallowed. The family said Cammalleri and his friend got sick while using the condominium’s hot tub. Read the article…………………………….
- Anatomy of a fall: Florida condo case to decide who to blame for dangerous balcony April 8, 2024On the second day of vacation with his wife and kids, David Casey was sipping a glass of pinot noir on the balcony of a rented condo in the Florida Panhandle, taking in the night view of the beach. As Casey leaned against the wooden railing on the third-floor unit in Seacrest, it suddenly gave way – “the next thing I knew, I was falling to the ground,” he said – and he plummeted backward into sand dunes and foliage ...
General Liability Insurance Articles Archives
Insurance – General Articles
- Hawaii’s Insurance Crisis as Premiums Nearly Quadruple April 18, 2024Sue Savio, president and owner of Insurance Associates and former president of the Hawaii Independent Insurance Agents Association, told Insurance Business America that insurance costs for condominiums have risen by 100 percent to 1,000 percent in certain areas. Cj Paet, vice president of operations for Cadmus Properties, told local news website KITV 4 Island News that premiums for one condominium in the Piikoi area managed by his company have jumped from $70,000 to $270,000 a year. Read the article…………………………….
- Beware of Claims Deadlines! Florida Condominiums Have Supplemental and Reopened Claims Statute Deadlines April 18, 2024Florida is the only state to address and provide a statutory definition for a “re-opened claim” or a “supplemental claim.” Florida’s law is not a consumer protection law. Instead, it is an insurance company protection law. The current edition of Florida’s Supplemental and Reopened claims law Read the article…………………………….
- Maximizing Insurance Savings: A guide to maintenance, replacement, and risk mitigation in community associations April 17, 2024For community associations, managing insurance costs can be a challenging but crucial task. Focusing on maintenance, replacement, and risk mitigation can significantly impact insurance premiums especially when dealing with separate carriers for property and general liability insurance. Below, we explore strategies for community associations to proactively maintain and replace key elements, ultimately reducing the risk of insurance claims and maximizing cost savings. Read the article…………………………….
- Supplemental Claims Don’t Need to Include Damage Estimates, Fed Appeals Court Says (FL) April 17, 2024A federal appeals court has, at least for now, put an end to lingering questions about some property insurance claims litigation: The insured does not need to submit a competing damage estimate when filing a supplemental claim if the policy does not require it. Read the article…………………………….
Insurance – General Articles Archives
Owners Insurance Articles
- More homeowners forced into California Fair Plan coverage April 16, 2024Most people never hear about the California FAIR Plan until their homeowner’s insurance gets canceled. “It’s not a normal home insurance policy,” said Amy Bach, executive director of the nonprofit United Policyholders. “It only covers fire, lightning, internal explosion. It doesn’t cover water damage, leaks, your toilet overflows.” Read the article…………………………….
- Coastal property owners yet to embrace roof-girding grants (NC) April 15, 2024Maybe one North Carolina insurance provider should join the industry trend and advertise: “Hello Beach Plan policyholders! Do you need a new roof? Want to save on your property insurance? How about we help you out with as much as $8,000 toward a much stronger roof that is fortified to withstand storms? And don’t worry — we’re not asking you to pay it back.” Read the article…………………………….
- Sarasota residents raise concerns about new FEMA flood zone map (FL) April 13, 2024Some Sarasota County property owners who didn’t need flood insurance have gotten notifications from their mortgage lenders — about 6,000 homes were impacted after they were moved into FEMA’s new flood zone mapping. Up to 1,000 along the Honore Avenue axis in Palmer Ranch are also included. Read the article…………………………….
- Homeowners insurance carrier cutting Florida policies April 6, 2024Following recent major hurricanes like Ian and Nicole in 2022, and Idalia last year, Florida homeowners ought to prepare for increases of up to 23% this year, according to a new report by Insurify. Condo owners, for example, are bracing for the state to rule on a more than 50% rate hike request by Castle Key and Amica Mutual Insurance companies. Read the article…………………………….