If you haven’t looked at your insurance in the past year, you may be saying what?!? when you do. While it has always been a necessary evil, it is something that both individuals and associations alike must obtain, and never before has it been so expensive or near impossible to secure. Insurance provides protection for […]
How to Choose the Best Condo Association Insurance for Your Community (FL)
Condo insurance can be one of the most important yet confusing aspects of managing your Tampa-based condo association. It can be time-consuming and frustrating to ensure all your association’s needs are met, and a policy is chosen that both provides sufficient coverage and remains within budget. Read the article………………………..
Insurance is a Privilege Not a Right (CA)
As you (hopefully) know, certain types of insurance are required by state statute in California, as well as in most other states. So, when someone stated “Insurance is a privilege not a right,” there was an audible gasp from most attendees in the room. Read the article………………………..
Waiver of Subrogation – Association Insurance Policies (OH)
Our firm recently had an interesting question posed by a condominium association board member. The question was: “Why is there a waiver of subrogation clause in the association’s insurance policy for property/casualty insurance, and can the clause be removed from the policy?” I thought this was a good question and warranted a blog post to […]
What Does Your Association’s Insurance Cover? It May Be More Than You Thought
Often, we meet with board members who are surprised to know their association’s property/casualty insurance policy covers more than the exterior of the building or other portions of the common elements. Depending on how the insurance provisions of the governing documents are written, many governing documents for condominium associations require the association’s insurance to cover […]
Community Association Insurance Manual
Variations on Murphy’s Law Will Apply to the Insurance You Buy – Below are some tongue-in-cheek comments, but there is an element of truth in all of them: Read the article………………………..
If a Spy Balloon Fell On Your HOA
If a spy balloon fell and damaged association common property, would it be covered by insurance? Read the article………………………..
Tierrasanta condo owners sound off after Farmers Insurance cancels policy (CA)
More than 300 condo owners in Tierrasanta are scrambling to find property insurance after Farmers Insurance cancelled their policy because of wildfire risk. Read the article………………………..
Residents hear news from property manager days after Miami Gardens condo fire displaces nearly 200 (FL)
Days after a fire emergency erupted in Miami Gardens that displaced nearly 200 people, tensions flared at the Betty T. Ferguson Community Center after those displaced residents gathered for a meeting with the property’s manager. Read the article……………………….. Additional article…………………………….
Allstate’s Castle Key Plans to Drop 33,000 Condo Policies in Florida
At least one of Allstate Insurance group’s Florida subsidiaries plans to non-renew 33,000 Florida condominium policies, starting in June. In a notice sent to Florida agents this month, Allstate said its Castle Key subsidiary had sent a letter Jan. 11 to the Florida Office of Insurance Regulation about dropping the coverage. The letter was marked […]
Supervisors, community members raise issues with new fire hazard severity zone map (CA)
Bill Groody, president of the Buckingham Homeowners Association and a board member of the Konocti Fire Safe Council, pointed out that in the new map, the entire Buckingham peninsula is in the very high fire area, up from half from the last map. “That is a very significant change.” Groody said he wasn’t there […]
Condo board president says looming deadline made it hard to keep fees from skyrocketing (NL)
The president of the board for a St. John’s condo where unit owners are facing skyrocketing fees says a looming deadline left them with no other option than to renew the pricey insurance policy that resulted in the increase. Read the article………………………..
Building Inspections: Structural and Insurance
I remember a day not too long ago when every property was inspected before an insurance policy was issued, and annual inspections were mandatory. I’m sure that everyone remembers when insurance companies stop requiring those inspections. Funny how a classic can return into vogue. Today insurance companies are hiring property inspectors daily. Read the article………………………..
Can an Insurance Broker Be Liable if a Loss Is Not Covered by Insurance?
What happens when, due to a negligent error by the insurance broker, a business suffers property damage that is either not covered, or not fully covered, by what the insured thought was an insurance policy they purchased through the broker to cover the risk? Can the insured look to its insurance broker to cover the […]
Timely Notification Key to Insurance Coverage: Condo Denied Coverage for Delayed Damage Report (WA)
This is the case of Franssen Condominium Association of Apartment Owners v. Country Mutual Insurance Co. et al., in the U.S. District Court for the Western District of Washington. Read the article………………………..
More insurance companies pull out of Louisiana: ‘We are in a crisis’
Thousands of folks in the south no longer have home insurance because companies are leaving the area after years of devastating storms. Read the article………………………..
Condo Column: Full replacement value (NH)
Someone told me this is a bit boring. So, I apologize in advance, but it’s important. One of the issues that has arisen lately in Condo World, is a bit of a pushback against the statutory requirement for every condominium association to have a master casualty and liability policy that will cover the full replacement […]
More San Diego condo communities get clobbered by huge insurance rate hikes due to wildfire risks
Late last summer, Walt Mooromsky saw a notice posted at his Mira Mesa condominium complex announcing an urgent meeting on the mundane topic of property insurance. Read the article………………………..
Legal Construction Column: Direct Action Statute (NJ)
In July 2022, the Supreme Court of New Jersey issued an opinion, Crystal Point Condominium Association, Inc. v. Kinsale Insurance Co., which considered whether (1) a condominium association that had obtained default judgments against a structural engineering firm and a construction inspection company resulting from construction defects, could assert claims against those judgment debtors’ insurance […]
Boston Condominium Association Prevails on Summary Judgment Based on Business Judgment Rule Concerning Insurance Shortfall (MA)
A recent summary judgment decision issued by the Suffolk Superior Court has endorsed the employment of the business judgment rule in assessing the decisions of a condominium association concerning the amount of insurance maintained. In Joseph Cimino v. Lynn Ornstedt et al., Suffolk Superior Court Civil Action No. 1984CV01991, the Court allowed the condominium association’s […]
Without Reservations: Fourth Circuit Affirms That Vague Reservation of Rights Waived Insurers’ Coverage Arguments (SC)
The Fourth Circuit recently affirmed insurance coverage for a South Carolina policyholder based on the “axiomatic principle” that an insurer which fails to fully and fairly articulate its potential coverage defenses in a reservation of rights letter loses the right to contest coverage on those grounds. Read the article………………………..
Special session passes changes to property insurance that may not help homeowners (FL)
With property insurance described as a “hidden tax” on homeowners, the Florida House on Wednesday gave final approval to a plan aimed at stabilizing the state’s troubled insurance market. The Republican-dominated House voted 84-33 along party lines to pass the bill (SB 2-A) on the final day of a special legislative session. The Senate approved […]
Condo HOA Wants Insurer to Pay $11.5M in Hidden Storm Damage Suit (WA)
This Thursday, the Seattle-area condo association filed a lawsuit against Philadelphia Indemnity Insurance Co. and at least 10 other insurers, accusing them of refusing coverage for approximately $11.5 million in hidden water damage. Read the article………………………..
Worker’s Death at Co-op Underscores Importance of Air-Tight Insurance (NY)
On the morning of Nov. 28, a worker plunged to his death from the scaffolding outside a 22-story co-op on the Upper West Side. The tragedy serves as a grim reminder that co-op and condo boards must have iron-clad insurance provisions in their agreements with all contractors and subcontractors before any work commences. There is […]
The factors that may be increasing insurance rates for Florida condo associations
It is a period of insurance insanity. Beyond all the people trying to collect money for Hurricane Ian’s damage, some people are getting next year’s bill. One Southwest Florida condo complex saw a nearly 400% rate increase. Read the article………………………..
Does Your Condo or HOA Need Crime Insurance?
Unfortunately, financial crime has been on the rise in condos and HOAs. Over the past year, there have been numerous reports from around the country of directors, officers, and property managers of community associations embezzling funds. Examples of alleged financial crimes against homeowners associations that have recently been reported in 2022 are as follows: Read […]
Florida Condominium Laws Require Insurance or Fidelity Bond to Reimburse Stolen Association Funds
Recent articles in the Miami Herald and Insurance Journal reported on massive fraud from a Condominium Association by its officers, board members, and leaders. The Miami-Dade State Attorney’s Office said it had charged five current and former association board members with racketeering violations, grand theft, money laundering, and fabricating evidence. In addition, two vendors were […]
Florida condo owners brace for rising insurance rates
Many South Florida condo owners are getting a holiday surprise they weren’t expecting — paying more for insurance. It’s all part of the state’s insurance crisis that has hit homeowners all year. Read the article………………………..
Colorado wildfires are making it harder to insure homes. Could a publicly funded plan stave off an insurance crisis?
In the Pine Brook Hills subdivision north of Boulder, homeowners started reporting increasing insurance premiums about two years ago. Families who had bought insurance from the same company for 20 years or longer received notices that their carriers were going to drop them, said Kevin Smith, president of the Pine Brook Hills Homeowners Association. Read […]
New Announcement by HUD Means More Options for Flood Insurance
All community association boards want to be good stewards of the funds collected from their homeowners. Sometimes, when finances are tight, a board has to face hard choices about how to reduce costs. That might mean reducing services or even deferring needed maintenance for a period of time where that maintenance is not essential to […]
Insurance Exclusions Leave Waukesha Condo Owners With Demolition Bill (WI)
A federal court judgment issued Wednesday left the owners of a Waukesha condo building expecting to foot the bill to tear down their homes that were deemed structurally unsound without the benefit of full insurance coverage. Read the article………………………..
Why You Might Need Flood Insurance When You Live in a High Rise Condominium Next to the Ocean (FL)
High rise condominiums next to the ocean are subject to storm surge and erosion. While rare, I have represented a number of condominiums that collapsed during a hurricane event. Read the article………………………..
Insurance Premium Financing Gaining Traction For Co-ops and Condos (NY)
In today’s so-called “hard” insurance market, premiums continue to rise while coverage limits continue to shrink. To add to the financial pressure, insurance bills are typically paid in one lump sum. Today, though, some boards are taking advantage of a financing tool that spreads the cost of these premiums over the course of a year. […]
Fidelity: How Much is Enough? (CA)
We promised to take deeper dives into insurance policies required for common interest developments, this year, and one we haven’t talked about yet is fidelity. Also referred to as “crime” or “employee dishonesty” insurance, this type of policy protects the monetary assets of the association and is required by most governing documents as well as […]
Must Have Insurance Policies for POAs (TX)
Insurance has quickly become a hot topic for the POA industry. Claims are on the rise and as a result, combined with economic factors, rates for policies are costing more than ever. Along with the increase in claims and rates, there has been a decrease in coverage amounts and fewer available polices for POAs are […]
Marshall Fire victims in Louisville townhome community claim HOA was underinsured (CO)
One of the biggest issues in the aftermath of the Marshall Fire has been that so many of the victims were underinsured. They’re still fighting to replace what they’ve lost nearly 10 months after the fire. Read the article………………………..
Insurer’s Reservation of Rights May Increase Your Association’s Liability Costs (MA)
When faced with a significant liability claim, or even a small one, condo association boards have to decide whether to fight or settle it, typically in both cases, relying on insurance to cover the costs. A recent decision by a federal District Court in Massachusetts (Berkley National Insurance Company v. Granite Telecommunications) has made that […]
Directors & Officers Liability: Defense Costs
Let’s continue our deeper dive into some more complicated aspects of insurance policies with the Directors & Officers Liability (D&O) policy. For a community association, this is the professional liability policy for the board of directors and helps to protect the association and the board members from liability incurred as a result of the decisions […]
Horry County folks’ federal flood insurance jeopardized by appeals board, state says (SC)
State officials fear that an obscure board’s decision to allow a developer to build dozens of homes in an Horry County flood zone may lead to higher flood insurance premiums for locals and could even jeopardize residents’ ability to obtain flood coverage. Read the article………………………..
A Healthy Building Will Limit the Rising Cost of Insurance (NY)
Carriers hitting the exits. Insurance carriers have exited the New York market because of claim frequency. For example, the fatal Bronx fire in January and the condo collapse in Florida last year — these things play a role in carriers’ appetites. So some buildings are no longer insurable with the carrier they’re currently using. Read […]
Seniors in Oceanside receive help with insurance after CBS 8 story (CA)
A senior community that came to CBS 8 for help says they feel like they’re finally being heard. Last week, CBS 8’s Abbie Alford went to Oceanside to hear their concerns over a huge spike in insurance costs. Read the article………………………..
NJ Supreme Court Ruling Addresses Enforceability of Arbitration Clauses in Construction Defect Disputes Involving Direct Claims Against a Judgment Debtor’s Insurer
The Supreme Court of New Jersey recently ruled that a condominium association may bring a direct action to recover damages based upon construction defect claims against an insolvent judgment debtor’s insurer. The Court further held, however, that a mandatory arbitration provision in the underlying insurance policy will be applicable to such claims. The case is […]
What is HOA insurance?
Homeowners associations (HOAs) are common and can have many perks, including shared community parks and playgrounds, regulations to help deter nuisances, and access to amenities like neighborhood pools or a free gym in your condo building. HOAs do usually assess fees to members, though, and you might be wondering why. While fees are used to […]
Flooded Tuckahoe condominium sues insurer for $1.7M (NY)
The Rivervue Condominium at 1 Scarsdale Road claims that Metropolitan Property & Casualty Insurance Co. has not fully honored the flood insurance policy, according to a complaint filed Aug. 16 in U.S. District Court in White Plains. Read the article………………………..
Problem Solved: Keeping an Insurance Carrier From Walking Away (NY)
A bump in the road. We had a condominium building in Westchester County that was looking for a new insurance carrier, and we thought we had come up with an unbeatable option for them, including a very attractive package insurance policy quote, which includes both property and liability insurance and represents 80% or more of […]
Insurance challenges: Communities facing rising umbrella liability rates
As property insurance rates are somewhat stabilizing in 2022, umbrella liability rates continue rising for common interest communities. Five years ago, many community associations were able to purchase umbrella liability limits as high as $50 million for a very economical price. In the past two years, insurance companies have reduced their limits to $5 million […]
Assessments required to cover skyrocketing insurance premiums (FL)
Q: Read the Q&A……………………………….Recently I received a notice from my condominium association that there is a $500,000 shortfall in the budget related to our insurance premiums. Starting next month all unit owners will be charged a certain percentage to cover this shortfall.
Master policies at condos only cover exterior
Condominium associations provide master policy insurance coverage, but a master policy usually covers only the building’s exterior and common areas. To have coverage for what is inside your condo unit, an H06 insurance policy is usually recommended and, in most cases, required, especially if there is a mortgage on the property. Read the article………………………..
STATUS: INDUSTRY EFFORTS TO FIGHT THE PROPERTY INSURANCE CRISIS (CA)
Perspective: With historic property losses to California’s homeowners came an equally historic exodus of its property insurers – leading to 5x to 10x increases in the cost of property insurance – if same could be obtained at all. Members of Community Associations Institute (“CAI”) California Legislative Action Committee (“CLAC”) have been petitioning the California Department […]
Workers’ Compensation Coverage & Insurance Costs: The Difference Between Volunteers & Employees
With inflation at historic highs, labor and supply shortages complicating even routine projects and maintenance, and budgets tight (and getting tighter), many condo and homeowner associations are looking for ways to control costs and still get needed work done on their properties. Read the article………………………..