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, […]
The Blame Game
Most of us can be quick to point fingers. It might be a fender-bender, an overcooked hamburger, or losing the Superbowl on the last play of the game – I know my first instinct is to figure out who is to blame for my suffering. In life, this instinct may be correct most of the […]
New Jersey Supreme Court Gives Supreme Win to Policyholders
Yesterday, the Supreme Court of New Jersey unanimously affirmed the Appellate Division’s holding that consequential damages caused by a subcontractor’s faulty workmanship constitute “property damage” and an “occurrence” under the 1986 Insurance Services Office, Inc. (“ISO”) form commercial general liability (“CGL”) insurance policy. This holding is welcome news to real estate developers, general contractors, and […]
Issues Involving Illinois Condo Claims
In Chicago, we often find property loss claims that occur at condominium units. Of course, these claims tend to come with their own special issues that require investigation. Aside from general issues that come with all property claims, such as cause and origin of the loss and actual damages incurred, two issues should be investigated […]
Is Ordinance or Law Insurance Right for Your HOA?
Homeowner associations (especially condominiums) are required to properly insure the common elements which often include the structures. As buildings age, the unavoidable happens: they fall out of compliance with building codes. Building code changes periodically to improve fire and life safety, structural integrity standards and energy efficiency. As new building materials, equipment, engineering and designs […]
The Good, the Bad, and the Ugly of the Insurance Discovery Rule
I have a number of “First Party Insurance” claims sitting on my desk (e.g. an Association pursuing its own carrier for discovered property damage). Many of these involve the “discovery rule.” Having dealt with this rule on a number of occasions, I’ve discovered the good, the bad, and the ugly of this rule. Read […]
Do You Know the Limits of Your Homeowners Association’s Insurance?
If you’re a member of an HOA board, you probably know that having insurance for your homeowners association is a necessity to protect the HOA and its members. But do you know what type of insurance you need to have or what the Association is responsible for and what the individual homeowner is responsible for? […]
Reducing Risk
We all experience risk in our everyday lives. Things such as making our morning coffee in our own kitchen, driving a car or even shopping at our local grocery store are all actions that can put us at risk. We might forget to turn off the coffee pot one morning which causes a fire in […]
Insurance and Animal Bites in Your HOA
Question: My condominium association is overrun with dogs. We are concerned that someone will be injured, and we will be sued because we did not impose the proper precautions. What should we do? Read the Q&A………….
Are You Covered? Insurance for Condos Goes Beyond the Basics
The experts who advise condo associations on insurance matters admit that the basic policies are pretty standardized and often seem to be all the same. Trustees may tend to gloss over the details and assume that anything important relative to condo communities is already built in to their coverage—and much of the important stuff probably […]
Reducing Risk
If you are a board member of your association it is important to be alert and attentive when driving or walking through your association property; make sure to assess your territory. Are any street lights burnt out which cause a dark spot on the street? Are there any pot holes in your streets that need […]
Social Engineering Coverage—Nothing to Do with Stem Cell Research
When I see the words “social” and “engineering” in one sentence, my brain immediately goes to the scientific and medical side. But in this case, we’re talking about something completely different. The term, in this case, refers to the Social Engineering Fraud Endorsement that may be added to a fidelity/crime policy held by an association […]
An Insurer’s Duty to Defend the Insured
A key consideration in developing a litigation strategy is whether or not insurance coverage applies to the causes of action at issue, which is important for both parties. For the plaintiff, coverage can mean that he has a greater chance of collecting on his judgment if it is going to be paid from insurance proceeds. […]
Insurer prevails on late claim dispute against homeowners association
QBE Insurance Corp. was justified in denying a homeowners association’s claim for hailstorm damage because it filed its claim nine months late, and failed to adequately explain the late notice, says a federal appeals court in upholding a lower court ruling. Read the article…………..
When Insurance Doesn’t Insure
During the job, one of the subcontractors was seriously injured, and the worker sued the co-op. The board, as is typical in occurrences like this, contacted Utica First, requesting coverage because the co-op had been listed as an additional insured party. That’s when this injury and insurance story went off the rails. Read the […]
Common Sense Prevails: State of Collapse Nonexistent Thirteen Years before Discovery of Decay
For years, property insurance policies that exclude rot damage have been called upon to cover rot because the policies extend coverage to “collapse”—an undefined term—caused by hidden decay, even if the structure remains standing and in use. Read the article………..
Make Sure Your Crime Insurance Has Got You Covered
It’s every co-op and condo board’s worst nightmare: your property manager is a crook. Could anything make it worse? How about a technicality on your insurance policy that allows the insurance company to deny your claim? Believe it or not, if you don’t read the fine print or you get the wrong type of crime […]
Appeals Court Sides With Insurer In Hurricane Claim (FL)
In a dispute stemming from Hurricane Jeanne in 2004, a South Florida appeals court has rejected condominium owners’ arguments that they sustained tornado damage — not hurricane damage. Read the article…………….
Florida Court Rejects Claim Replacement Of Undamaged Property Is Necessary For Aesthetic Uniformity
Late last week a federal court in Florida tossed a condominium association’s claims that it was entitled to replace undamaged hallway carpeting, wallpaper, baseboards, and woodwork in order to “achieve aesthetic uniformity” with similar hallway components replaced after water damage. In Great Amer. Ins. Co. v. Towers of Quayside No. 4 Condominium Ass’n., 2015 U.S. […]
Chubb Insurance Sued Over Sandy Condo Damage In NJ
The aftereffects of Superstorm Sandy continue to blow through New Jersey’s courthouses, with a Fort Lee, New Jersey, condominium association now accusing Chubb Insurance Co. of New Jersey of failing to properly compensate it for heavy damage from the hurricane. Buckingham Towers Condominium Association I Inc. filed suit against Chubb in Bergen County Superior Court […]
The Great Carnac Would Have Been One Hell of an Insurance Agent
One of Johnny Carson’s greatest bits was when he donned a cape and turban and became the Great Carnac. The Great Carnac had the ability to divine answers to unknown questions. If the Great Carnac was real, he probably would have made a nice living as an insurance agent. Presumably, your insurance agent does not […]
Does Your Property Insurance Cover Water Damage?
Insurance policies are designed to cover sudden and accidental events, and not cover repeated ongoing damage that occurs over weeks, months or years. The same holds true for water damage claims. Leaky pipes, leaky roofs and wind-driven rain are all examples of repeated damages and are not due to a sudden and accidental event. Read […]
Insurance Decisions: How Much Coverage is Enough
From equipment failure and personal injuries to tornadoes and tropical storms, disasters happen. Any condominium association worth its salt knows that it needs to be prepared for a rainy day. A great chunk of that preparation is insurance. Read the article……….
Homesharing and Insurance: What Your Board Should Know
In the tri-state area, where even the most profligate among us may shed a tear or two at hotel room prices, the homesharing trend has grown by leaps and bounds, with more co-op and condo owners than ever renting out their units to short-stay vacationers—and pocketing more than a few extra bucks in the process. […]
Property Insurance Basics: The ABC’s of Coverage
Property insurance, by definition, is a guarantee of compensation for a specific loss or damage to physical property or equipment. Within that broad and simplified explanation there is room for multiple interpretations—and more than enough confusion to go around. An all-volunteer condo or co-op board of directors may be intimidated just thinking about what constitutes […]
Filing Insurance Claims: Choosing Wisely Can Save Money
Boards and associations, just like individuals, carry insurance coverage to protect them from liability, loss and other financial and legal problems, although the issues may be a little different than the typical auto or single-family homeowners’ insurance. Read the article……….
California Court Considers Reimbursement of Legal Fees Under D&O Policy
In its recent decision in Clark v. Travelers Cas. Ins. Co. of America, 2015 U.S. Dist. LEXIS 114877 (C.D. Cal. Aug. 28, 2015), the United States District Court for the Central District of California had occasion to consider when an insurer’s duty to reimburse defense costs under a D&O policy is triggered. Read the […]
What You Don’t Know Can’t Hurt You, But What You Do Know Most Certainly Can
In almost every walk of life, knowledge is something people seek to obtain. Francis Bacon famously, and succinctly, coined the phrase “knowledge is power.” But in the topsy-turvy world of insurance, another famously succinct phrase may be more applicable, “ignorance is bliss.” (Thomas Gray). Read the article……….
Insurance Decisions: How Much Coverage is Enough?
Earthquake insurance is very common in California, for obvious reasons—but what about in New England? Tremors may be rare here, but nonetheless, they do happen. And they can cause damage to condominiums and other structures. Read the article………..
Homesharing and Insurance: What Your Board Should Know
Long before Airbnb became a household word, attorney Frank Flynn was dealing with condominium owners who thought that turning their units into a bed and breakfast was a great idea. “It’s a terrible idea. You get all these people coming and going, wandering into the building,” says the managing partner of the Boston-based Flynn Law […]
Insurance: A Must-Have or Couldn’t Hurt? Making Smart Yet Affordable Coverage Decisions
From equipment failure and personal injuries to tornadoes and tropical storms, disasters happen, and any condominium association worth its salt knows that it needs to be prepared for a rainy day. And a great chunk of said preparation consists of insurance. Read the article………..
Filing Insurance Claims: Choosing Wisely Can Save Money
Boards and associations, just like individuals, carry insurance coverage to protect them from liability, loss and other financial and legal problems, although the issues may be a little different than the typical auto or single-family homeowners’ insurance. But deciding when, and if, to file a claim versus paying out of pocket can be conundrum. Read […]
Insuring Winter’s Woes: Dealing with the Problems of Ice Dams
The birds are chirping, the trees are plush and green, and the beaches are lined with people. The record-breaking winter of only a few months ago, when inch after inch of snow piled up in New England, causing trouble for roads, businesses, and private homes—it’s hard to believe it ever happened. Summer months can offer […]
Insurance: A Must-Have or Couldn’t Hurt?
From equipment failure and personal injuries to tornadoes and tropical storms, disasters happen, and any condominium association worth its salt knows that it needs to be prepared for a rainy day. Actually, even the most disreputable association worth zero salt is aware of this. And a great chunk of said preparation consists of insurance. Read […]
New Jersey Appellate Court rules consequential damages are covered by general liability policy even when direct damages are not
The Appellate Division of the Superior Court of New Jersey recently ruled in Cypress Point Condominium Association, Inc. v. Adria Towers, L.L.C.1 that consequential damages to the common area and units of a condominium complex caused by a subcontractor’s defective work constituted “property damage” and an “occurrence” under the building developer’s standard-form CGL policies, even […]
For “At-Issue Waiver,” The Best Defense May Not Be An Affirmative Defense
As this blog has repeatedly documented, it can be hard for insurers to assert the attorney-client privilege in the context of bad faith litigation. One difficulty arises in states that enforce a presumption against the privilege in bad faith suits. In many cases, insurers need to waive the privilege, to assert a defense based on […]
HOA Insurance Deductible
In a homeowner association environment, there are two major types of insurance policies: the insurance carried by the HOA and insurance carried by the individual owners. In condominiums, the HOA’s insurance generally extends to the entire property, including the units themselves. However, to protect the HOA’s insurability, unit owners are required to carry a Condominium […]
Community Upkeep, Maintenance and Avoiding Problems and Emergencies
First, always remember that CONTRACTS ARE LEGAL INSTRUMENTS ENFORCEABLE AGAINST YOUR ASSOCIATION. Be sure to read them carefully, properly bid your projects, sign on behalf of the association, and consult with your general counsel attorney if you are unsure about liabilities, terms, provisions, or implications of the contract. The other single most important thing that […]
The Top 10 Questions asked by Board Members and Community Managers Regarding HOA and Condo Association Insurance
Question # 1: Is Flood Covered? Question # 2: What is Co-Insurance? Question 3: Does my insurance provide coverage if we serve beer/wine/liquor at a community function? Question 4: What do I need to have on my HO6 policy? Question 5: What is Hired Non-Owned Auto and why do I need it? Question 6: What […]
Condominium Flood Insurance
The National Flood Insurance Reform Act of 1994 (NFIRA) mandated that all homes receiving a federally backed mortgage loan must have flood insurance when the home is located in a Special Flood Hazard Area in a participating community. Condominium owners must remember that the mortgage portfolio protection program (MPPP) allows mortgage companies to force a […]
Washington Supreme Court misses opportunity to clarify the meaning of “collapse”
Washington State has long been a jurisdiction with no judicial pronouncement as to the meaning of the term “collapse” in a property insurance policy, but that changed last Thursday when the state’s Supreme Court issued its decision in Queen Anne Park Homeowners Ass’n v. State Farm Fire & Cas. Co., 2015 WL 3795796, 2015 Wash. […]
Florida Federal Court Limits First Party Bad Faith Claims
In Fox Haven of Foxfire Condo IV Ass’n Inc. v. Nationwide Mut. Fire Ins. Co., the insured condominium association alleged that the insurer failed to properly investigate and settle a claim for damages caused by Hurricane Wilma. After the storm, the association and the insurer disagreed on the damage amount. Read the article………..
Subrogating Condominium Damage
Imagine opening the door to your condominium (“condo”) only to be confronted by several inches of standing water. The first call is to your insurance company, which must then consider not only mitigating, adjusting and paying the claim, but subrogating against those responsible for the loss. Read the article……….. state-by-state chart on […]
Kentucky Court Holds D&O Policy Not Triggered By Suit Against Condo Board
In its recent decision in State Auto Prop. & Cas. Ins. Co. v. Highland Terrace Counsel of Co-Owners, Inc., 2015 U.S. Dist. LEXIS 59663 (W.D. Ky. May 7, 2015), the United States District Court for the Western District of Kentucky had occasion to consider the scope of coverage afforded under a directors and officers coverage […]
Reservation of Rights
Most community association board members are aware that if a person sustains an injury in the association’s common elements, such as a typical “slip and fall,” and makes a claim against the association for the injuries, the association should be covered by insurance. That is, the association’s insurance carrier should adjust the claim and, if […]
The Ever-Increasing Deductible Dilemma, Part Two
The long-awaited sequel to Part One, this blog addresses the other deductible dilemma associations are facing. The dreaded wind and hail deductible. Under this scenario, imagine a large hail storm whips through the Denver area, causing significant damage to the roofs in your community. As a result, all of the roofs in the community must […]
Construction Defects: What Insurance Policy Applies
In construction defect claims, various insurance policies are often implicated. These policies can span many years, so it is critical to determine what policy or policies may provide insurance coverage for the damages that ensue. The insurance policies at play, for general contractors, subcontractors and suppliers, are typically comprehensive general liability policies. Assuming these parties […]
Insurance Complexities Create Challenges and Liability Risks for Condo Boards and Managers
“My condo community is insured for full replacement value,” the board’s president announced confidently. “Our manager assures us,” he added, “that we have all coverage we need.” I hear these confident assertions often, and they make me shudder. Many condo associations have learned through painful experience that their full replacement policy may not fully cover […]
Condominiums May Not Opt Out Of Maryland’s Mandatory Insurance Provisions
Section 11-114 of the Maryland Condominium Act provides that Condominium Associations must maintain property insurance on the entire condominium including units, excepting improvements and betterments installed by the Unit Owner. Any deductible in the Master Policy is a common expense with one exception. The Association may recover up to $5,000 of its deductible from a […]
4 insurance issues arising from body cameras and private security
Recently, a broker e-mailed me with a question I had not yet heard. A homeowners’ association was seeking to equip security guards with body cameras. She asked, does this impact the guard firm’s liability and, if so, how? Body cameras have quickly become a hot-button issue for law enforcement and policymakers, and now they are […]