Whether a small service contract for something like snow removal, or a larger initiative like replacing all the windows in a building or HOA, boards and property managers have to exercise extreme due diligence before signing on the dotted line. This approach ensures that biased indemnity clauses aren’t leaving boards – and the unit owners […]
Insurance Law: Some Important Cases to Know
Insurance liability is a very important issue for a condo or HOA association or a condo board. Most have built up a good relationship with their insurance agents or brokers, and many are content to leave the details to the pros. However, the world of insurance liability isn’t static—new laws are proposed and enacted, and […]
Indemnity Clauses and Liability: Protection Runs in More Than One Direction
One of the unique aspects of community living, whether that community is a co-op, condo, or HOA, is the collective responsibility shareholders or association members take upon themselves when they offer to serve on their community’s board of directors. With the assumption of board duties and responsibilities comes a measure of liability that might not […]
Insurance Basics: Know the ABCs
For many people, insurance seems like its own mysterious realm, filled with terminologies that sound formidable and enigmatic. At the same time, people also understand the profound importance of insurance and what it can mean for the safety and security of the co-ops, condos, and associations in which many of us live. Fortunately, insurance professionals […]
What’s Covered By A Condo Association’s Insurance Policy?
Part of the appeal of owning a condominium is that, unlike a home, the condo owner is likely not solely responsible for maintaining everything inside and out. Typically, the condo association oversees the management of the day-to-day maintenance of the building’s structure and other shared spaces on its property. That’s not to say you’re without […]
Subcontractor’s Alleged Negligence Was “Occurrence,” Seventh Circuit Says
The U.S. Court of Appeals for the Seventh Circuit, affirming a decision by the U.S. District Court for the Northern District of Illinois, has ruled that a subcontractor’s alleged negligence was an “occurrence” for purposes of a commercial general liability (“CGL”) insurance policy. Read the article……………
Board Members, What HOA Insurance Does Your Community Have in Place?
Serving as an HOA member of the Board is an important job. The homeowners in the HOA count on you to do what’s best for the homeowners and the association in general. Not all board members bring the same background and experience to the job but most people today have at least a passing acquaintance […]
Is Your Alabama Condominium In Compliance with the Law? Mandatory Alabama Insurance Requirements
Condominiums in the state of Alabama are governed by the Alabama Uniform Condominium Act. Section 35-8A-313 of the Act specifically relates to insurance requirements for condominiums. Condominium associations are required to maintain master insurance policies, but individual unit owners are not required to obtain their own insurance policies for their units. Read the entire article……………………………….
The Fall Of The Economic Loss Rule And Rise Of The Independent Tort Doctrine
In Florida, the economic loss rule previously prevented parties who allocated their risks and remedies in a contract from bringing a tort action. For many years, the economic loss rule only applied in two circumstances: Read the article…………
Pre-Existing Conditions
It is difficult to turn on the news or open a newspaper (do people still do that?) without hearing a discussion of pre-existing conditions. The discussion relates to replacement of the Affordable Care Act (ACA). I am fortunate that employer-provided health insurance isn’t impacted by the ACA, as my affinity for burritos could actually qualify […]
When a Natural Disaster Strikes, Is Your Association Covered?
Hurricanes. Floods. Tornadoes. Hail. Wildfires. Lightning strikes. Earthquakes. Blizzards. Mother Nature has quite the arsenal to throw at us! Unfortunately, every part of North America is subject to one or more of these events. Some, like hurricanes, come with enough advance warning to prepare for them, but most do not. That’s why it is critical […]
How well do you know condo insurance exclusions?
Question: We insure a Condo Trust under a business owner’s policy (BOP). A condo unit owner was injured in a slip & fall in the condo parking lot. The BOP policy excludes medical expense coverage for “any insured.” According to our Condo Association Coverage Charges endorsement, which expands the definition of Insured: “…Each individual unit […]
Help Your HOA Board Members Understand Crime and Fidelity Insurance
While nearly all HOAs have some type of policies on the books, many HOA boards have little or no idea what type of insurance they have or need. This can potentially lead to expensive litigation and claims that can cost your homeowners association thousands, and sometimes even millions of dollars. There are certain types of […]
Insurance Coverage for Property Damage Caused by Defective Workmanship
One of the principal points of contention between insurers and insureds is whether defective construction work is, or can be, an occurrence, thereby triggering coverage. The New Jersey Supreme Court has joined a growing number of jurisdictions holding that commercial general liability (CGL) insurance policies may provide insurance coverage to insured general contractors when property […]
“Succeeds to the Interests of” Does Not Require Assumption of Obligations
The individual insured, Robert Primo, previously served as a director and treasurer of Briar Green Condominium Association in Houston, Texas. In 2008 and, shortly before resigning, Primo wrote himself two checks from Briar Green’s account totaling roughly $100,000. Briar Green asserted the funds were misappropriated. Primo, however, contended the funds were payment for management services […]
Dogs Take a Huge Bite of Homeowner Liability Claims
Dog bites man, man sues board. Are you adequately insured? “My dog doesn’t bite.” Don’t believe those four innocent words. Dog bites and other dog-related injuries accounted for more than one-third of all homeowners liability claims paid out in 2016 – a staggering $600 million – according to the New York-based Insurance Information Institute (I.I.I.) […]
Through A Condo Owner’s Looking Glass – A Shade Of Green – Or Is That Gray?
In an action applying Florida law, a federal district judge ruled in favor of a Directors and Officers liability insurer, finding that the “insured versus insured” exclusion applied to bar both a defense and coverage of an underlying action. In the underlying action, two condominium owners – one of which was a past condominium president […]
Ninth Circuit: Excess Insurers Must Tread Carefully When Rejecting Demands Exceeding Primary Limits
Under California law, a liability insurer has a good faith duty to reasonably settle claims within its policy limits. In Diamond Heights Homeowners Association v. National American Insurance Co., the California Court of Appeal held that where a proposed settlement demand exceeds a defending primary insurer’s limits and has been approved by the insured and […]
Condominium Associations May Recoup Insurance Deductibles (NJ)
One of the largest line items in any condominium association’s budget is its insurance premium. Condominium associations are required, pursuant to their governing documents, to carry adequate property insurance to address common elements (and in many cases, unit owners’ improvements), liability insurance, and director’s and officer’s insurance coverage. Further, condominium associations budget for any insurance […]
Ninth Circuit: Excess Insurers Must Tread Carefully When Rejecting Demands Exceeding Primary Limits (CA)
Under California law, a liability insurer has a good faith duty to reasonably settle claims within its policy limits. In Diamond Heights Homeowners Association v. National American Insurance Co., the California Court of Appeal held that where a proposed settlement demand exceeds a defending primary insurer’s limits and has been approved by the insured and […]
6 Communication Tips for a Smoother Insurance Claim Process
If you’ve been a board member or community manager for very long, then you know all too well the issues that come with submitting an insurance claim on behalf of your association. Unfortunately, claims are inevitable for any community, and when they occur, everyone is tasked with extra work and effort to get things resolved […]
Construction Defects and Insurance Coverage: When Is the Duty to Defend Triggered?
In Florida, an insurance company may have a duty to defend and/or indemnify its insured. The insurance company’s duty to defend its insured (as in defending the insured in a lawsuit) is broader than its duty to indemnify (as in paying for damages caused by the insured). The duty to defend is separate and apart […]
Liability of Condo Associations for Damages Caused by Failure of the Common Elements
As a practitioner for many years in the area of association law, I have been aware of a long-standing difference of opinion among association attorneys as to the obligation of a condominium association to pay for damages caused to the Common Elements (CE), Limited Common Elements (LCE), and to the Units and personal property of […]
Seventh Circuit Finds Faulty Work Not a Covered “Occurrence”
In Allied Prop. & Cas. Ins. Co. v. Metro North Condo. Assn’ No. 16-1868, 2017 U.S. App. LEXIS 4107 (7th Cir. Mar. 8, 2017), the Seventh Circuit had occasion to consider whether claims of faulty workmanship could constitute “property damage” caused by an “occurrence” as required by the insuring agreement of a CGL policy. […]
Is Your Georgia Condominium In Compliance with the Law? Mandatory Georgia Insurance Requirements
Condominium regulations in Georgia are outlined in the Georgia Code. Section 44-3-107 specifically addresses insurance coverage requirements for condominiums. Broadly speaking, condominium unit owners are not obligated by statute to maintain insurance, but condominium associations are. Per the Code, condominium associations in Georgia must have casualty insurance policies and liability insurance policies. Read the article……………………………
Many condo insurance claims arise from liability
Condominium corporations present claims against their insurance policies for a wide range of reasons. Although, it is important to note that current trends in claims are not necessarily unique to condominiums. That said, multi-unit residential dwellings and communities continue to present some unique claims challenges for insurers across the country. Experience as an insurance broker […]
Trio of Recent Decisions on the I v. I Exclusion Should Remind Policyholders to Annually Review the Language in Their Policy to Avoid Losing Coverage
D&O policies vary quite a bit from carrier to carrier, and language on “standard” exclusions can change from year to year. Accordingly, it is important to do a yearly review of your D&O policy to make sure your company has the right coverage. Three recent federal court decisions interpreting the “insured vs. insured” or “I […]
Texas High Court Finds for Insurer in D&O Coverage Dispute
The Texas Supreme Court recently ruled in favor of an insurer in a case that hinged on the applicability of an insured-v.-insured exclusion in the carrier’s directors and officers (D&O) liability policy. The Court’s action reversed the ruling in Great American Insurance Company v. Robert Primo by the Court of Appeals for the 14th District […]
What is Subrogation?!?
The question of the day is: what is subrogation? Subrogation is a legal concept where one party is permitted to stand in the shoes of another party and recover damages from a third party. For example, it permits an insurer to assume the position of its insured and take legal action against a third party […]
Putting a Premium on Your Insurance Coverage: A Guide to Understanding Condominium Property Claims
Even with proper risk management best practices, it’s impossible to completely avoid all types of insurance claims from happening. At heart, a claim is like any other business dealing—a negotiation. Your ability to convincingly argue your position and support it with solid, factual-based evidence can often sway the outcome in your favor. With that said, […]
Reservation of Rights Requirements Adopted by South Carolina Supreme Court
The South Carolina Supreme Court’s recent decision in Harleysville Group Insurance v. Heritage Communities, Inc., Appellate Case Nos. 2013-001281 and 2013-001291, 2017 WL 105021 (S.C. Jan. 11, 2017) affirms what is and is not covered “property damage” under commercial general liability (CGL) policies in the construction defect context, affirms that the scope of an insurer’s […]
Has Your Insurance Got You Covered?
Does your insurance company play fair and square with you? Not always, asserts attorney Tara Snow, a partner at Novitt, Sahr & Snow. And if you are not on the ball, you could lose significant coverage. Snow points to a Queens co-op she represents as an example. The building had a policy to protect the […]
Federal Appeals Court Finds Luxury Condo Owner’s Suit Filed too Late Against Insurer (NV)
A luxury high rise condominium located in Las Vegas, Nevada, was found to have been barred from recovery of its $5 million window damage claim, according to a ruling by the Ninth Circuit of the U.S. Court of Appeals. The December 2016 appeals court ruling affirms a Nevada judge’s decision to dismiss the case based […]
Oregon High Court Clarifies How To Read the Four Corners of a Complaint
On December 8, 2016, the Oregon Supreme Court issued a decision, West Hills Development Co. v. Chartis Claims, Inc., 360 Or. 650 (2016), clarifying what allegations in a construction defect suit will implicate coverage under an “ongoing operations” additional insured endorsement. In West Hills, the complaint at issue regarded damages suffered by the plaintiff HOA, […]
Is Your Fire Insurance Full of Hot Air?
It was one of the worst fires in Catskills history: The 396-unit Grandview Palace Condominiums, formerly the fabled Brown’s Hotel in the Borscht Belt, erupted in flames on April 14, 2012. Seven of its nine buildings were destroyed, though none of the residents died or were seriously injured. But the primary fire-insurance company declined to […]
Why Directors and Officers (D&O) Insurance Is A Must For Homeowner Associations
Did you know that volunteering as a board member for your condo or HOA could jeopardize your personal financial security? You’re actually at risk from lawsuits against the board—whether they have merit or not. Having an indemnification clause in your bylaws helps protect directors financially but at a greater potential cost to the condo association […]
Construction company claims insurance provider failed to protect it (CA)
A trial date has been set for the end of January in an insurance coverage case to determine who is responsible for water and mold damage sustained in a condominium. Saarman Construction Ltd. was hired by a homeowners association to complete repairs on the exterior of a condominium complex that has sustained water damage not […]
D&O Insurance — Uncovered
Homeowner Association and Condo boards have a fiduciary duty to act in the best interest of the community as a whole, follow the law, and protect the assets and financial stability of the community. Proper insurance plays a major role in fulfilling that duty. But many board members are unsure if they have the right […]
Worker’s Compensation Insurance for Your HOA
As a community association, it may not seem that workers’ compensation is a necessary tool in your arsenal. However, to keep the neighborhood looking good, you probably hire outside vendors, such as contractors, landscapers, etc. If this is the case, you need to protect your HOA with workers’ compensation in case someone is injured while […]
Condo association accuses insurer of deceptive practices (TX)
A Galveston County condo association is suing a Texas City insurance business, alleging deceptive trade practices. Eibands Luxury Condominiums Associations Inc. filed a complaint Oct. 19 in Galveston County District Court against Rust Ewing Watt & Haney Inc., et al, alleging violation of the Consumer Protection Act. According to the complaint, the plaintiff was financially […]
What Happens Next after Cypress (NJ)
The New Jersey Supreme Court in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC., et al. (A-13/14-15)(076348) finally put to rest (in New Jersey) an issue that has been haunting general contractors and developers since 1979. That is the year when Justice Clifford penned Weedo v. Stone-EBrick, 81 N.J. 233 (1979), denying a faulty […]
5 Actions an HOA Board Should Take to Clarify Maintenance & Insurance
One common subject that often causes confusion in a homeowners association is grasping the difference between the maintenance responsibilities of an association and the items that are covered by the association’s insurance policy. Often owners and even HOA board members may not understand the differences between these two subjects. Read the article…………..
New Flood Zones Could Slash Insurance Premiums (NY)
Federal officials, responding to an appeal from Mayor Bill de Blasio, have agreed to redraw the city’s flood maps, which is likely to reduce or eliminate insurance premiums for thousands of buildings currently in flood zones, Crain’s reports. Read the article…………
Community Associations and Water Damage
When writing insurance for a condominium association or a homeowner’s association insured like a condominium, there are two integral parts of the insurance program: The association’s Insurance and the unit-owners Insurance. The association’s insurance is responsible for the structures and all common elements (shared walls, drywall, shared plumbing, shared electric, etc.) as originally built, barring […]
Sometimes It’s Hard to Waive Subrogation: Pacific Indemnity v. Deming
According to the recent decision of the U.S. Court of Appeals for the First Circuit in Pacific Indemnity Company v. Deming, 2016 WL 3607028, 2016 U.S. App. LEXIS 12374 (July 5, 2016) common contractual provisions that defendants frequently assume amount to waivers of subrogation are actually insufficient to establish the existence of a waiver. In […]
The Earth Movement Exclusion: How Does it Affect Construction Defect Cases?
One of the biggest considerations for parties on both sides of any lawsuit is whether insurance coverage will apply to the plaintiff’s claims. This is especially true in construction defect cases, where the cost of repairing the alleged damage can be significant, and quite often beyond the financial means of the construction professional being sued. […]
New Jersey Supreme Court Issues Important Ruling for Developers and General Contractors Regarding Coverage Under CGL Insurance Policies
The New Jersey Supreme Court’s August 4, 2016 holding in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC is the latest decision to fall in line with the “strong recent trend” by state and federal courts to recognize that standard commercial general liability (CGL) insurance policies provide coverage for property damage caused by the […]
Workers’ Compensation: What Your Board-Management Team Should Know
For over a century, states have had laws, rules and regulations in place to ensure that employees who are injured while performing their jobs are adequately taken care of. An uninsured employer that finds itself embroiled in a workers’ compensation claim may face a severe financial burden. Thus it is imperative that any entity either […]
Insurance dispute at trial in Judge Crowder’s courtroom (IL)
According to the complaint, a fire severely damaged the condominium structure on June 20, 2012. At the time of the fire, insurance policies covering the loss had been previously issued by the defendants and were allegedly in full force. The plaintiffs seek a determination of the rights of the association and individual unit owners under […]
Putting a Premium on Your Insurance Coverage – A Guide to Understanding Condominium Property Claims
Even with proper risk management best practices, it’s impossible to completely avoid all types of insurance claims from happening. At heart, a claim is like any other business dealing—a negotiation. Your ability to convincingly argue your position and support it with solid, factual-based evidence can often sway the outcome in your favor. With that said, […]