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……………………………….
Directors and officers coverage poised for change (ON)
When the dust had settled after the partial collapse of Champlain Towers South in Miami earlier this year, the story that emerged was one of total disarray inside the condo board. Although the board had called for structural repairs back in 2018, those repairs were to be paid for through special assessments imposed on the […]
Waukesha condo owners fear major losses if insurance doesn’t accept claims (WI)
People who live in the condo that was evacuated last week in Waukesha now say they are worried insurance may not cover all of their losses. Read the entire article……………………………….
Between a Rock and a Hard Place (insurance)
There has been quite a bit of chatter about how insurance premiums for common interest developments have increased dramatically over the last year. Communities that are in wildfire hazard areas are faced with non-renewals and in many cases are having to turn to the excess and surplus insurance markets. If they can find coverage, it […]
Finally Settling a Generally Accepted Fact: A Georgia Appellate Court Case Clarifying Insurance Requirements Under Georgia Condominium Act
There are few events as calamitous as water damage to a home. Jesse Mainor, a condominium unit owner, experienced condominium unit water damage twice in short order. In his case, the source of the leak was another unit’s hot water heater which subsequently leaked into his ceiling, causing damages into the five figures. […]
Insurance Basics: Is Your Association Adequately Covered?
While insuring your association against potential catastrophes can be a daunting proposition for a board made up of volunteers, it’s a crucial part of the job. Fortunately, there are delineated starting points, ample resources, and industry professionals to which a board can turn for guidance. Nobody likes dwelling on worst-case scenarios, but by allocating its […]
Condo risks in focus as A&E market tightens
Rising losses are causing underwriters to rethink the way they analyze architects and engineers professional liability risks, and the deadly collapse of a condominium building in south Florida earlier this year is raising further concerns. Read the entire article……………………………….
Runaway Bay condos hit with massive property insurance increase (FL)
The Runaway Bay Condominium Homeowners Association is experiencing a 337% increase in its annual property insurance premiums, an increase that may eventually be felt by other condo associations, resorts, apartment complexes and single-family homeowners on Anna Maria Island and throughout the state. Read the entire article……………………………….
Co-op and Condo Flood Insurance Premiums Could Jump by 10% or More (NY)
Created by Congress in 1968, the National Flood Insurance Program (NFIP) was doomed from the start. The premiums the program collected never kept up with the losses it covered, requiring the federal government to pump in more and more money. Climate change has made a bad system worse. If it were a private insurance carrier, […]
Sweetwater Condo Community Risked Insurance Loss Over Tree Problem (FL)
With their property insurance in jeopardy, residents at a Sweetwater Condominium called NBC 6 Responds for help. Overgrown trees were interfering with a powerline near the El Polo Condominium and threatened to damage property. Aida Estevez, the Condo Association President, said she got a letter from the condo’s insurance provider concerning the trees. Read the […]
Could Your Association’s Insurance Policy be Cancelled due to the Roof?
Many insurance carriers are taking a very hard look at roofs due to all the roof claims that followed Hurricane Irma in 2017. Insurance carriers are not taking risks on “questionable roofs.” Read the entire article……………………………….
Problem Solved: Handling the Hard Insurance Market (NY)
Many co-op and condo boards aren’t aware that the insurance market goes in cycles and that it fluctuates between hard and soft. Can you explain the difference? And where are we now? Read the entire article……………………………….
Shrinking Federal Subsidies Could Cause Flood Insurance Costs to Soar
Many of the people who own homes, including co-ops and condominiums, near New York City’s 500 miles of waterfront or in flood-prone inland areas just got some unwelcome news. Starting Oct. 1, federal subsidies for flood insurance will begin to disappear in a nationwide experiment to force Americans to pay something closer to the real […]
Better a Dead Horse Than a Dead Claim (WA)
I’m going to say it again: insurance claims have a relatively short limitations period. Most courts hold that an insured has two years after discovering property damage to bring a lawsuit against the insurer. There is often some confusion about what this means. The two year limitations period is NOT the time within which you […]
FBI Busts $31 Million Trip-and-Fall Insurance Scam (NY)
Two doctors and two lawyers have been indicted on charges that they ran a sophisticated $31 million fraud scheme that recruited more than 400 homeless people and drug addicts to stage trip-and-fall accidents, then undergo unnecessary surgical procedures. Personal-injury lawsuits and falsified insurance claims were then filed against the owners of the targeted properties, possibly […]
How Proactive Boards Can Benefit Their Insurance (CA)
While attending one of the “Zoom Rooms” at this year’s Legal Forum, a story was told about how a homeowner’s association had its insurance cancelled due to a claim. This association could no longer find coverage in preferred markets (admitted carriers, such as Farmers and Travelers) and was forced to get its insurance from a […]
Armed security guards will drive HOA insurance up (NV)
Q: Our homeowners association has a few community owners who think armed guard security would be a good thing. We have no crime problem. Our current master policy and related umbrella coverages has an annual premium of $98,703. Read the Q&A……………………………………
After Surfside, Heightened Focus on Condo Association Insurance
In a perfect world, condominium associations would hire a structural engineer to inspect their property every couple of years. The engineer would inform the association of any compromises to the building’s structural integrity or electrical system, and the association’s board of directors would authorize repairs in timely fashion, simultaneously managing risk and controlling costs —including […]
Problem Solved: Protection Against Scaffold Law Insurance Claims (NY)
What’s the first thing a co-op or condo board should do when it gets ready to tackle a major capital project? The most important thing they should do is to contact their insurance broker. That’s one of the biggest things that we as an agency press for our clients – always to be in contact […]
NJ Court Reaffirms Rule Against Coverage for Faulty Workmanship Claims and Finds Fraud Claims Inherently Intentional
Awarding summary judgment to an insurer under both liability and directors & officers (D&O) coverage parts, a New Jersey trial court reaffirmed the principle that claims of defective workmanship without resulting “property damage” are not covered under a general liability policy, and further dismissed claims for fraud and breach of fiduciary duty, finding that such […]
Property Insurance for Condominium Communities (TN)
Section 66-27-413 of the Tennessee Condominium Act includes specific requirements for insurance obtained by the condominium association for condominium regimes. If there are horizontal boundaries (residential units above other units), the condominium association is required to obtain property insurance on individual units. The condominium declaration should describe, with specificity, the insurance that will be obtained […]
Property Insurance for Attached Residential Communities (TX)
In traditional single family residential communities, each homeowner is responsible for selecting an insurance agent and obtaining their own property insurance. In the event that a homeowner’s residence suffers a casualty, the homeowner will look to its property insurance provider for reconstruction proceeds and other residences within the community are unlikely to be impacted. However, […]
Miami condo collapse | Insurers fight to avoid defending consultant that carried out building’s inspection (FL)
The consultant charged with inspecting the Champlain Towers apartment block prior to its fatal collapse could be forced to pay damages out of its own pocket after its insurer applied to the courts for an exemption. Read the entire article……………………………….
USA TODAY Surfside condo collapse survivors fear cashing checks now could endanger future payments (FL)
Dozens of people who owned condominiums in the building that collapsed in Surfside, Florida, fear that if they cash early insurance checks, they might jeopardize future payments, a state senator told the judge overseeing lawsuits from the disaster. Read the entire article……………………………….
Insurance for condominium associations, post-Surfside (LA)
In light of the recent condominium collapse in Surfside, Florida, condominium associations may find themselves questioning whether they are adequately insured for catastrophic casualty events and/or allegations of mismanagement of the condominium. There are several types of insurance that condominium associations are required to have under the Louisiana Condominium Act, and several other types of […]
Public Adjusters and Community Associations (CO)
Community associations frequently incur significant and complicated insurance claims. The Colorado Front Range is notorious for intense hailstorms and the resulting roof loss claims. The process to document and submit a claim to the insurer to receive all appropriate insurance proceeds is known as “claim adjustment”. Claim adjustment can be time-consuming and complicated. Many associations […]
What Insurance Does Your Homeowners Association Need? (AZ)
Though an absolutely vital aspect of any homeowners association’s (HOA) management, insurance is frequently overlooked. Often reviewed only as a budget line item, most communities do not take the time each year to reevaluate the changing needs of the community when it comes to insurance. Ensuring the community is properly covered against risk is not […]
Problem Solved: Making Sure Your Insurance is Air-Tight (NY)
When co-op and condo boards tackle major capital projects, making sure that their insurance coverage is in order is critical – thanks in large part to New York State’s one-of-a-kind Scaffold Law. What are the top things boards absolutely must have in order before they start a major capital project? Read the entire article……………………………….
Court Affirms Miami Condo Tower Hurricane Damage Award That Disappointed Both Sides (FL)
The 11th Circuit Court of Appeals affirmed a jury verdict that found an insurer liable for $2.6 million in damages to a Miami condominium tower caused by Hurricane Irma, rejecting arguments made in appeals filed by parties on both sides of the dispute. Read the entire article……………………………….
Fla. condo tragedy forces risk professionals to rethink building integrity
The deadly condominium collapse in Surfside, Fla., could reshape the way experts model catastrophe risk along a coastline that is already vulnerable to wind and water damage from tropical systems. Read the entire article……………………………….
11th Circuit Affirms Condo Tower Hurricane Damage Award That Disappointed Both Sides (FL)
The 11th Circuit Court of Appeals affirmed a jury verdict that found an insurer liable for $2.6 million in damages to a Miami condominium tower caused by Hurricane Irma, rejecting arguments made in appeals filed by parties on both sides of the dispute. Read the entire article……………………………….
Miami condo collapse: Warnings of premium hikes and coverage criteria changes (FL)
Florida condominium owners should prepare for the impact of the Miami building collapse on their insurance coverage – including higher premiums and policy changes – insiders have warned. Read the entire article……………………………….
Florida collapse raises insurance questions for other high-rise buildings
The tragic partial collapse of Champlain Towers in Surfside, Florida, could roil insurance markets for condominium buildings in the area from both property and liability standpoints, industry sources say. So far, however, there have been no drastic changes in an already hardening market as policyholders reach out with coverage concerns, they say. Read the entire […]
Protecting Community Assets (GA)
Four years ago, we published two separate blog articles on funding reserves and preparing for disaster (i.e., related to insurance claims). Although these general issues are always relevant for community associations with common property, they have unfortunately been thrown into the international spotlight within the last week. Read the entire article……………………………….
How To Conduct An HOA Insurance Review And Why Do It?
Proper insurance coverage is essential to any homeowners association. Once you have all the necessary policies in place, though, you can’t simply pay the premiums and put it on autopilot. Insurance is something you have to review and update on a continuous basis. This simple act helps safeguard your association from certain financial ruin. […]
How Does Condo Insurance Actually Work? A Quick Guide
When you buy a condo, you own that property. But your condo is also inside a building whose common areas are jointly owned by all the owners in the building. This might leave you a bit confused about how homeowner’s insurance would work for your condo. In this condo insurance guide, we shall look at […]
Condos: Who Insures What? Who Pays for Damages? (FL)
The 2021 hurricane season began June 1, but water pipes can burst year-round. If an insurable event occurs in a condo, however, is it a unit owner’s job to pay or the association’s? It’s a simple question with a sometimes complicated answer. Read the entire article……………………………….
Insurer wins bad faith construction case
A federal appeals court Tuesday upheld a lower court decision that ruled an insurer is not obligated to defend a land developer charged with negligent design and construction under exclusions in its policies. Read the entire article……………………………….
The Ethical Dilemmas of Community Association Insurance
The procurement and maintenance of Insurance in the community association industry is shrouded in unique ethical considerations that do not apply to individual insurance consumers. Enter the Community Association Board’s (“Board”) “fiduciary Duty.” This process is imbued with inherent ethical considerations for not only Boards, but also Community Association Managers (“CAMs”), Community Association Attorneys, Community […]
10 Tips for Choosing a Community Association Insurance Policy (CO)
Every year, an association must renew or select a new insurance policy for the association. Often boards struggle with choosing one of the most expensive line items on the budget. Here are some quick tips associations can use for some basic guidelines in selecting a policy. Read the entire article……………………………….
North Texans Still Struggling to Rebuild After 2019 Dallas Tornado
Presser and her sister, Mimi Roth, co-own their three-bedroom condo at Park Central Condominiums in Dallas. They say they bought insurance for their unit – which covers the contents in their home. The holdup, they learned, was between their homeowners association and its insurance provider. Read the entire article……………………………….
HOA Homefront – Insurance: Does your HOA have ALL it needs? (CA)
The previous column discussed considerations regarding property insurance, but that is only one of many insurance types that most HOAs should have in place. Read the entire article……………………………….
HOA Homefront: Is the HOA’s insurance coverage sufficient? (CA)
Insurance brokers are one of an HOA’s most important vendors, yet they are often ignored until claims arise. This mistake can be costly. Insurance is a contract in which the insurer accepts a fee (“premium”) and in return agrees to pay for certain incidents of damage (property insurance) or claims of liability (casualty insurance). Because […]
Alabama Federal Magistrate Recommends Dismissal of Construction Defect Declaratory Judgment Action Due to Expanded Duty to Defend Standard
While the starting point for assessing an insurer’s duty to defend requires comparing the allegations contained within a complaint to the language contained within the insured’s policy, the majority of states require an insurer to do more. In Alabama, a failure of the underlying complaint to allege damages falling within the policy’s terms is not […]
Filing An Insurance Claim For Your HOA
Insurance cover is a key component in any homeowner’s association (HOA). Often, disasters strike unexpectedly, and if not handled in advance, it can cost your association thousands in damages. By taking up insurance, you get to unburden yourself from the financial responsibility of dealing with these damages. Read the entire article……………………………….
Finding the Right Insurance for Your HOA
Mitigating your HOA’s risk is one of the most important aspects of HOA leadership. While many associations can go a long time never needing the insurance they’re paying for, your association will eventually need to file a claim. Even when properly insured, insurance claims can still place financial stress on an HOA, since many associations […]
Significant Flood Insurance Changes On the Way (NC)
If you or your association are required (or wish) to have flood insurance, big changes are coming. For years, the National Flood Insurance Program (NFIP) has looked at ways to better charge specific properties for their specific risks. At present, flood insurance rates are mostly based on a property’s location and elevation. That may not […]
In a Condo who insures what and who pays for the damage? (FL)
Questions often arise when there is an insurable event (such as when a water or sewer pipe bursts), who pays for the damage? The Condominium Association or the Unit Owner. The answer will depend upon what the damaged items are. Section 718.111(11)(f), Florida Statutes, Read the entire article……………………………….
Why Your HOA Needs To Have Fidelity Bond Coverage
Like any organization, homeowners associations are vulnerable to crime and theft. While establishing internal controls can certainly help ward off fraud, these controls are often not foolproof. This is where fidelity bond coverage comes in handy. Read the article…………………………
New Jersey Appellate Court Rules Judgment Creditor Not Subject to Mandatory Arbitration Provision in Insurer’s Policy (NJ)
In a published decision issued on March 4, 2021, New Jersey’s appellate court refused to compel an underlying tort liability plaintiff to submit its dispute against the insurer of two parties against whom it obtained default judgments to binding arbitration. Read the article……………………………