Anyone living in California over the last five years has seen the dramatic increase in property losses caused by wildfire. Some say that since 2017 wildfire losses have equaled a dollar figure of two Northridge Earthquakes. Carriers that used to have money in reserves to fall back on in a “bad claims” year have fewer […]
Castaic residents see 1000% increase in fire insurance (CA)
Residents of a Castaic condominium complex are wondering why an estimated 1000% increase to their fire insurance rates would happen in as little as three years, but say answers to this question are hard to come by. Read the article………………………..
Directors & Officers (Insurance)
This month, we take a look at the Directors & Officers policy. As a liability policy, it serves to defend the board of directors should someone file a lawsuit against them. I know, the thought of someone being so offended by something a community association board says or does that they sue is ridiculous (just […]
Maintenance and Insurance Charts
An association’s maintenance and insurance obligations are typically set forth in the association’s covenants. However, in many instances, simply reading the maintenance and insurance provisions of the declaration will not give boards or managers clear answers. Often times, provisions of the declaration must be cross referenced and read in conjunction, and statutes consulted, before an […]
Metairie Towers remains vacant 11 months after Ida, attorney says insurance agency isn’t paying up (LA)
It’s being called an eyesore in Old Metairie – Metairie Towers. More than 400 people had to move out after Hurricane Ida. Eleven months later, it still sits vacant. “We are 11 months to the day from Hurricane Ida and clients at Metairie Towers and residents through the condominium association are still not back in […]
HOA Homefront — Reader Questions: Rising HOA insurance rates and broker advice (CA)
Q: Our community’s liability insurance policies are up for renewal soon. Some neighboring associations are reporting ten-fold increases in fire insurance premiums due to brushfire proximity concerns. Even though our community does not appear to be in a fire-prone area according to real estate sources, are we in for a huge shock? Read the Q&A……………………………….
Three Reasons Why the Cost of Insurance is Increasing for Condominium Associations (TX)
The COVID-19 pandemic and the 2021 collapse of Champlain Towers South in Surfside, Florida have placed greater scrutiny on the activities of condominium associations and their boards. One of the ramifications of this increased scrutiny has been an increase in the rates of all insurance policies, with a major impact on property, general liability and […]
New Appellate Decision Related to Application of Insurance Proceeds in Older Condominiums (NC)
Earlier this week, the North Carolina Court of Appeals issued a decision in Grooms Property Management v. Muirfield Condominium Association. The case dealt with interpreting and applying insurance provisions in the declaration of an older condominium governed by the NC Unit Ownership Act, and determining the association’s obligation to purchase insurance and the application of […]
Emerald Pointe condo owners still paying HOA fees on burned down homes (FL)
The owners of homes in Emerald Pointe Community that burned down four months ago are still paying HOA fees for those homes. Although the insurance company has paid the Condo Association $1.9 million. The residents said they haven’t received any of the insurance money but are still paying the HOA fees. Read the article………………………..
Condo Q&A: Ins and Outs of Insurance Coverage (FL)
Question: I am an owner of a condominium in Palm Beach County. There was recently a fire in an adjoining unit that caused damage to my unit. What is covered by my insurance policy versus the condominium’s insurance policy? Read the Q&A……………………………….
Condo’s claims against insurer must be arbitrated: State high court (NJ)
The New Jersey Supreme Court partially overturned a state appeals court on Monday and held that a condominium can pursue claims against an insurer of allegedly insolvent policyholders, but they must be arbitrated. Read the article………………………..
Castaic condo owners see nearly 900% spike in fire insurance premiums (CA)
Homeowners in a Castaic condo complex were hit with a massive rate increase for fire insurance, with rates going from roughly $40,000 a year in 2020 to nearly $450,000 in 2022. Read the article…………………………….
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……………………..
Surfside collapse leaves costly legacy for Florida condo owners
The specter of Champlain Towers South came in an email alert this month for residents of a West Palm Beach waterside condominium. Insurance on the 12-story building across from the Lake Worth Lagoon increased 82%, requiring a special meeting to hike the budget and jack up dues. It was a blow for the association, which […]
Co-op and Condo Insurance Costs Will Continue to Rise (NY)
From 2010 to 2020, we went through an unprecedented period of rate stability in the insurance industry. Rates for our co-op and condo clients were largely flat, with relatively small increases or decreases, depending on claims experience, property valuations and other underwriting criteria. Read the entire article……………………………….
Why can’t co-ops (and condo’s/HOA’s) cooperate when disaster hits?
Today, there’s no expectation that neighbors will help each other rebuild after a catastrophic loss. But there are communal obligations and risks to cover through insurance for subdivisions, condominiums and cooperatives, as well as the risk of harm to others through liability coverage. Read the entire article……………………………….
How Natural Disasters Affect Community Associations: Insurance Policies & Filing Claims
Natural disasters can have a significant impact on community associations. One of the main issues that associations face after a natural disaster is knowing when and how to file insurance claims. In this article, we will discuss how storms affect community associations and the role of the different types of insurance coverage concerning filing claims, […]
Insurance is driving up costs for condo associations (FL)
Experts say based on the carrier, condo associations could see anywhere between 20 to a 100 percent increase on their insurance premiums. Read the entire article……………………………….
$1B Surfside settlement signals condo association, construction insurance premium hikes (FL)
The $1 billion-plus Surfside settlement marks a milestone in the lawsuit over the deadly condominium collapse. It also reveals the role of real estate insurance — and is a harbinger of premium hikes that could reverberate across the industry. Read the entire article……………………………….
Insurance changes hit with second lawsuit (FL)
A contractors group and an Orlando-area roofing firm Thursday challenged the constitutionality of a new law that combines a property-insurance change with efforts to bolster the safety of condominium buildings. Read the entire article……………………………….
Claims Confusion Clarified
A manager or Board member’s role within the community association requires many, many hats be worn at various times. One of the more stressful parts of working within a common interest community is assisting in times of crisis, whether it be involving one owner/member or the entire community association. If you’ve managed or volunteered within […]
Devastation in our Backyard: A look at insurance and what we can learn from the Marshall Fire (CO)
Growing up in Louisville, Colorado, I like many others, could have never imagined the scene that unfolded on December 30, 2021. Early in the day a staff member mentioned a small brushfire had started in Boulder. Miles away we went on with our day only to see what looked like dust in the air around […]
Does My HOA Really Need Directors and Officers Insurance?
Inflation is noticeable everywhere today and HOAs are not immune to the pressures caused by higher relative costs. One common remedy to these pressures is cutting costs and one area where it is always tempting to do so is in insurance premiums. However, skimping on insurance coverage now can generate significant costs down the road. […]
Why Every Community Associations Needs a Workers Comp Policy (CO)
Even though all Community Associations should only hire licensed insured contractors, we know this does not always happen. By hiring uninsured venders or contractors the Management Company and the Association can be held liable for workers comp claims submitted by their vendors. Read the entire article……………………………….
How to Avoid Common Insurance Problems in Your Condominium Bylaws (MI)
Condominium insurance for units and common elements within the condominium requires the coordination of two different types of insurance. The first type of insurance is the master condominium policy purchased by the condominium association, which is also known as a “CGL” or commercial general liability policy. The second type of insurance is the unit insurance […]
Florida’s home and condo property insurance market ‘is collapsing – a mess beyond proportions’
Florida homeowners are seeing huge increases in the cost to insure their homes, further fueling the high cost of living in Florida. A special legislative session begins next week, but hopes for significant reform are dwindling. Read the entire article……………………………….
HOA Insurance Tips: What Do I Do Before and After a Storm?
As severe weather season comes into play, it’s time to consider what you will do if a storm hits your community. You will need to understand how to prepare for a storm and claim any insurance assistance you might need after the storm has passed. Read the entire article……………………………….
Florida receivership currently handling 8K claims, 2K lawsuits in homeowner insurance crisis
One Pinellas County woman discovered she had black mold growing in the walls of her new home, but when she contacted her homeowner’s insurance company, she felt like everyone was avoiding her. She later found out it was because her insurance company was was going into receivership. Read the entire article……………………………….
Florida’s insurance crisis spreads to condos
Up and down the Florida coast, condo owners are waking up to a new reality as insurance rates rise, and coverage declines. Up and down the Florida coast, condo owners are waking up to a new reality as insurance rates rise, and coverage declines. Read the entire article……………………………….
7th Circuit finds for insurance company in adjuster’s game of chess (IN)
A public adjuster who assured an Indiana homeowners association that the way to get a claim for storm damage processed was to play a game of chess with the insurance company, got checkmated when he failed to heed the deadline for filing a lawsuit, prompting the 7th Circuit Court of Appeals to make this observation: […]
HOA Master Insurance Policy: How Does It Protect An HOA?
A homeowners association master policy, often referred to as simply HOA insurance, is a form of insurance designed to protect HOAs. Standard master insurance policies typically cover two things: Property damage to any structures or shared spaces that the HOA owns; and, Liability expenses that the HOA is responsible for, including if a guest becomes […]
Condo insurers exit market and hike rates after lawmakers fail to pass safety reform (FL)
Insurers have become increasingly averse to issuing policies for aging condominiums in Florida following the state legislature’s failure to pass safety reforms, despite the deadly Surfside collapse last year. Read the entire article……………………………….
Waukesha Horizon West condo lawsuit, $17M sought after collapse threat (WI)
Waukesha Horizon West condo owners who had to be evacuated from their building after a threat of collapse are now suing the building’s insurer. The 27 homeowners have brought a $17 million lawsuit against Travelers Insurance for failing to pay claims. Read the entire article……………………………….
Understanding Crime Insurance For HOAs
Crime insurance is an essential form of insurance for homeowners associations. Unfortunately, far too many HOA board members skip this insurance policy because they feel that it will never come into play. But, crime is something that can happen to any HOA. Read the entire article……………………………….
Association Must Be Named in Declarations Pages of a Policy To Avoid Disagreements Later
Associations are sometimes not listed in the declaration pages of insurance policies. I have seen property management firms, program administrators and the wrong Association listed in the declaration pages of insurance policies. Read the entire article……………………………….
Understanding How Your Condominium Insurance Works—The Individual vs. Master Policy Coverages
A condominium can be defined as a single real estate unit in a multi-unit development in which a person has both separate ownership of a unit and a common interest, along with the development’s other owners, in the common areas.1 Insuring your condominium is often not so easy, especially since it usually requires that you […]
D&O Insurance: A Rundown For The HOA Board
The leaders of an HOA community can run into all sorts of legal trouble, jeopardizing their personal assets and interests. This is where D&O insurance comes in. Read the entire article……………………………….
Worker Compensation Insurance: Will Your HOA Benefit From It?
Worker compensation insurance is a necessity in today’s liability-riddled landscape. While this form of insurance is more often associated with businesses that employ workers, it applies to homeowners associations, too. Read the entire article……………………………….
Workers Comp Insurance: Why Your HOA Board Needs It
While it may not seem important at first glance, workers comp insurance is something that every homeowners association should have. This type of insurance policy is essential even if the HOA itself does not have any employees or workers. Read the entire article……………………………….
Reservation of Rights Letters: What are They and What Should You Do if Your Association Receives One? (CA)
Your Association gets sued by a homeowner. You reach out to your insurance company to let them know about the lawsuit then you sit back and relax because insurance is going to cover everything, right? Do not get too comfortable! Insurance companies may not cover everything, or anything, that you believe they should. Read […]
Champlain Towers Collapse Could Change Condo Insurance
The collapse of the Champlain Towers South in Surfside, Fla., in June is bringing increased scrutiny to the condominium insurance market. Ninety-eight people died after the building fell, highlighting the need to review the legal requirements and standards related to ongoing maintenance and structural integrity of condo buildings across the country. Read the entire article……………………………….
Rebuilding a Michigan Condominium After a Fire
Having a fire in a condominium project is a terrifying thought. In addition to the risk of loss of life, there is a high probability that a condominium unit and the common elements will be damaged, or worse, destroyed. In the event of fire damage, the condominium documents should designate the condominium association’s and co-owners’ […]
D&O Insurance For HOAs: Your Complete Guide
Insurance is one of the most essential purchases any homeowners association can make. Boards, in particular, will benefit from D&O insurance. Unfortunately, many boards don’t even know what this type of policy covers and how much coverage is enough. Read the entire article……………………………….
What Exactly Does Condo Association Insurance Cover and Do You Need Your Own Personal Policy?
Picking the right insurance policy as a homeowner can be daunting. Because certain policies offer certain things, it’s important to have a clear understanding of what type of coverage you need. If a person lives in an HOA community, especially for a condo, coverage can get tricky. Here’s what to know about the things a […]
Insurer wins ruling in rescission of homeowners association’s policy
A federal appeals court Monday ruled in favor of an insurer that sought to rescind its policy for a homeowner’s association, holding the association had failed to disclose a situation likely to give rise to a claim in its coverage application. Read the entire article……………………………….
To Insure or Not to Insure? – Determining the Association’s Insurance Obligations in Townhome Communities (FL)
A frequent area of concern and dispute among owners and board members of townhome communities is the scope and extent of the association’s obligation to obtain and maintain insurance over the townhome property and the individual townhome buildings. Read the entire article……………………………….
Allied Asks Court to Bar Coverage for Florida Law Firm in Condo Collapse (FL)
The insurer for a South Florida law firm that represented the collapsed Surfside condominium – lawyers known for fighting off attempts to reform condo safety laws – has asked a judge to absolve the carrier of coverage responsibility for the law firm. Read the entire article……………………………….
California Wildfires’ Impact HOA Insurance
Severe weather and natural disasters have been a challenge for communities in different parts of California for decades, from droughts to earthquakes to wildfires. The state’s most recent wildfire season is putting pressure on insurance companies to cut back on coverage to homeowners. Read the entire article……………………………….
Insurer Owes Duty to Defend and Indemnify Nuisance Litigation (CA)
A federal district court, applying California law, has held that an insurer owed a duty to defend and indemnify an insured in an underlying nuisance litigation under a not-for-profit D&O policy, as the policy’s pollution, property damage, breach of contract, and prior acts exclusions were not implicated. The Crosby Estate at Rancho Santa Fe Master […]
Fourth Circuit Upholds Finding That Excess Insurer Did Not Act In Bad Faith Where Insured Would Not Be Liable To Pay
The underlying dispute centered around a construction-defect claim in South Carolina state court brought by a homeowners’ association against a construction company. The construction company asked its excess insurer to provide coverage for the lawsuit but the excess insurer concluded it had no duty to defend. Read the entire article……………………………….