Purchasing insurance is often expensive, time consuming, and confusing. However, today is the right time to make sure you have the proper insurance coverage in place and to confirm that your insurance company has the financial strength to handle the claims process. That way you can rest comfortably knowing that you will be in the […]
Burden of Association Insurance Companies (CT)
Occasionally, insurance carriers for common interest communities elect to cancel or refuse to renew the policy. The tension created after a loss when the manager or board finds that the policy has been cancelled can drive a person to drink. Through incompetence, negligence or just plain mistake, the board may find that the association is […]
Insurer must pay condo association for Hurricane Harvey damage (TX)
A federal appeals court has affirmed a lower court ruling in favor of a Texas condominium association, holding it is entitled to damages for boat slips destroyed during Hurricane Harvey. The August 2017 hurricane caused unprecedented rainfall and flooding in Texas, according to Friday’s ruling by the 5th U.S. Circuit Court of Appeals in New […]
Property Damage Claim and General Liability Coverage/Denial (CA)
When there is a potential for litigation regarding property damage, your association’s legal counsel will sit down with the Board of Directors to analyze whether the alleged property damage resulted from the association’s negligence in any form. If the association is put on notice of a potential negligence claim, it is advisable to immediately report […]
Stemming A Watery Confusion – Understanding Flood Insurance
A rose, by any other name, may smell as sweet. But a flood by any other name is just a watery mess. It might be that a pipe bursts in a home and floods rooms and hallways, or a levee breaks somewhere upstream and washes out a town. The cost of repairs to damaged property […]
How to Protect Your Association
Every association should carry a workers’ compensation policy – whether the association has employees or not. If your association issues 1099’s to contractors, then you can be held liable for injuries or liability from an uninsured contractor. (Scroll down to page 30 of magazine…………………..)
Navigating the Insurance Liability Claim Minefield
We have faced a lot of new frontiers as a community this year—Zoom meetings, increased digital sharing of information, how to safely open community common areas, how to allow business partners to complete their work at the community without disrupting concerned residents—all while handling the additional influx of action items and working in a new […]
2020 Could Make 2021 the Year of Insurance Agency E&O Lawsuits
Insurance agents and brokers should prepare for a big agency errors and omissions (E&O) litigation wave to crash their shores in 2021. Agency E&O claims are a lagging indicator, meaning plaintiffs typically only go after agents and brokers after they exhaust other legal avenues—most often suing insurers—and come up short, according to experts at the […]
What is a Condominium Association’s Responsibility to Residents for Property Damage Claims? (NJ)
Becker focuses on legal issues impacting community associations. While we advise our clients on a broad spectrum of matters that affect their daily operations, one of the most common inquires we receive relates to a condominium association’s responsibility when property damage is reported. What should your condominium association do in this circumstance? The answer is […]
CAI Law Seminar 2021 (an insurance-related takeaway)
One of my favorite events put on by Community Associations Institute (CAI) National every year is the Law Seminar. Here are a couple of take-aways that we at Berg Insurance Agency think you might find interesting: Read the article…………………………………
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, […]
2020 Could Make 2021 the Year of Insurance Agency E&O Lawsuits
Insurance agents and brokers should prepare for a big agency errors and omissions (E&O) litigation wave to crash their shores in 2021. Agency E&O claims are a lagging indicator, meaning plaintiffs typically only go after agents and brokers after they exhaust other legal avenues—most often suing insurers—and come up short, according to experts at the […]
How much condo insurance do you need?
There are several different types of homeowners insurance depending on the type of home you live in. If you live in a condo or co-op, you’ll need condo insurance, but before you decide how much insurance to get, you’ll want to understand how condo insurance is different from other types of homeowners insurance. It will […]
Auburn Woods Homeowners Association V. State Farm General Insurance Company (CA)
No Duty to Defend HOA and Property Manager Under Policy Liability and D&O Coverage Parts For Lawsuits Which Failed to Allege Damages and Did Not Include Property Manager as an Additional Insured Read the article………………………………….
Understanding Homeowner Association Insurance (CO)
Master policies are a form of property and liability insurance carried by associations that the members pay for as part of their assessments. Master policies typically cover common elements in a community as well as portions of units at times. State laws pertaining to condominiums and most project legal documents creating condominiums require condominium associations […]
Florida Courts Clarify Role of Appraisal in Coverage Claim Disputes
For first party property claims, lengthy and costly litigation is not always the only mechanism for resolving a dispute. Most homeowner’s policies include detailed terms and conditions for parties to undergo appraisal when there is a dispute over the amount of loss. Read the article………………………………….
Underinsurance leads to whopping bill after fire at condo building (BC)
After a fire 16 months ago, Derek Wubs still has no home and no answers. What he does have is a $37,000 bill he’s struggling to pay for his burned-out Chilliwack condo, and a warning for others. “I was under the belief that paying my strata fees would result in the appropriate building insurance being […]
What Are The Most Important HOA Insurance Coverages?
Homeowners association insurance is a costly but a worthwhile expense because it offers financial protection in cases of damages or losses within the community. However, there are still plenty of HOA boards that do not realize the importance of HOA insurance. To ensure that your community is adequately protected, here are the most important HOA […]
Examine your condo flood insurance (FL)
Last week, I reviewed a fairly new nonprofit called First Street Foundation, established to help homeowners understand FEMA flood zones and potential flood zones not yet recognized by FEMA. I also pointed out what I feel is a valuable addition to realtor.com for potential homeowners called the Flood Factor, which provides valuable information to all […]
Maintenance and Insurance Charts: Is Your Community Using One? (CO)
An association’s maintenance and insurance obligations are typically set forth in its governing documents, and ideally should be contained in the declaration of covenants, conditions, and restrictions. Although one might expect that a board member, manager, or homeowner would be able to read their communities’ governing documents and find answers to questions concerning their maintenance […]
Condo Association Insurance for Newbies – 2020 Guide
So, you’re the newest board member of your Condo Association? Congratulations! It can be a rewarding position to hold. But there’s lots of work behind the scenes. And much is never noticed until it goes wrong – like insurance. Not being insured for a catastrophic event could cost millions of dollars. Read the article…………………………………..
Subrogation: Stepping into the Shoes of Another to Enforce Claims: the Virginia Supreme Court Hands Down an Opinion on Subrogation in the Context of a Condominium Fire (VA)
By recent decision, the Virginia Supreme Court weighed in on an insurance subrogation dispute arising out of a fire at a Virginia condominium. The case is illustrative as to situations that sometimes face community associations when there are casualty losses. Read the article……………………………..
Does the Pollution Exclusion Bar Coverage for Injuries Arising out of Viruses and Bacteria? (FL)
Applying Florida law, a federal district court in the Southern District of Florida held in 2009 that the insurer did not have a duty to defend against a claim for injury resulting from a virus. In First Specialty Insurance Corp. v. GRS Management Associates, Inc.,2 First Specialty Insurance Corporation brought a lawsuit against a residential […]
Elevator Collision Coverage (CA)
Not long ago, the Treasurer on a board of directors called to cancel their recently approved policy because “it included elevator collision coverage and we don’t have an elevator.” She was upset because the 185-page policy contained language that did not apply “at all” to her small community, and she was convinced that they were […]
Hurricane Insurance Claims for Condominium Associations (FL)
There is a lot of information on how associations can prepare for hurricanes but much less information as to what happens after the hurricane, particularly as it pertains to insurance claims. A question that managers and board members need to consider is, what is required after a hurricane to ensure compliance with your insurance policy […]
Tropical Storms Marco and Laura: Insurance typically covers some, but not all, damage (LA)
As Tropical Storms Marco and Laura barrel toward Louisiana, you may wonder how well your homeowners or renters insurance will hold up in a natural disaster. The answer largely depends on the disaster. Damage from many calamities are covered by a standard policy, but a handful are not and require separate coverage for protection. Read […]
Preparing to Navigate the Claims Process by Understanding What Is Expected
Navigating an insurance claim after a significant loss can be frustrating, costly, and time consuming. Associations have an obligation to cooperate with their insurance company fully and completely during the claims process even in the most daunting of circumstances. Failure to adhere to that duty may result in the denial of an insurance claim even […]
10 Tips for HOA Insurance
When you research insurance as a homeowner, your decision only impacts you and your family. However, when you research insurance as a board member, it impacts all your neighbors and their families. Read the article………………………………
HOA Ordinance or Law Insurance
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 […]
Insurance Subrogation Case Impacts Condominium Associations
In May, the Supreme Court of Virginia ruled that an insurer did not waive its subrogation rights (the process by which an insurance company collects money from the party at fault) against tenants of a unit owner in a condominium insurance policy. The insurance company can pursue a claim for damages against the tenant even […]
Why Condominium Associations Should Consider Risk Management and Financing with Caution
Insurance for a condominium association is designed to finance the insurable exposures for the association. These exposures include the property and several liability exposures, including what would be covered by a commercial general liability policy, directors and officers liability policy, and potentially other liability policies. Read the article………………………………..
Additional Insured
Earlier this month, one of our insured communities had an interesting experience. They hired a contractor to do some fence repairs, and in the process of fixing said fence, the crew hit an irrigation line. This caused a considerable leak and one of the units suffered water damage. Read the article……………………………..
How Can the Community Association Collect From Insurance Policies Insuring the Sponsor, General Contractor, Subcontractors, and Design Professionals?
Liability insurance policies insuring sponsors, general contractors, subcontractors, and design professionals are confusing and loaded with complex terminology that make them difficult to understand. Yet, it is these policies that hold the key to the ability of a community association to recover damages from design and construction deficiencies. Rather than making your eyes glaze over […]
Condo Insurance
Condo insurance works in much the same way as a homeowners policy. If a covered loss damages your condominium, a condo policy can help pay to repair elements like drywall and cabinets and replace belongings such as clothing and furniture. Read the article………………………………..
Insurance companies set to squeeze even more money out of us this storm season (FL)
Florida homeowners, already paying nearly the highest home insurance rates in the nation, should get ready for more sticker shock if and when their policies next renew. Premiums for most Florida property owners are poised to jump again — sharply — as insurers pass along skyrocketing costs of coverage they need to pay claims after […]
Virginia Allows Condominium Association’s Insurer to Subrogate Against a Condominium Tenant
In Erie Insurance Exchange v. Alba, Rec. No. 190389, 2020 Va. LEXIS 53, the Supreme Court of Virginia considered whether the trial court erred in finding that a condominium association’s property insurance provider waived its right of subrogation against a tenant of an individual unit owner. The Supreme Court reversed the lower court’s decision, holding […]
Implied Coinsured? Subrogation Actions Against Condominium Tenants (VA)
When considering a claim’s subrogation potential, insurance carriers are often confronted with contractual waivers of subrogation that potentially bar the claim. One of the most common waivers carriers face are those involving property damage claims in condominium buildings. In a recent decision, the Virginia Supreme Court held that in the absence of specific language otherwise, […]
Hurricane Insurance Claim Deadlines (FL)
Almost three years have passed since Hurricane Irma and almost two years since Hurricane Michael. If your community has received insurance money and rebuilt, or if your community has only suffered minor damages, both hurricanes may seem a lifetime ago. Unfortunately, many communities are still suffering through unpaid claims and, in many cases, unknown damages. […]
California Wildfire Disasters: The Interpretation and Implementation of Our New Insurance Laws
On a Thursday morning, I received the call that no daughter ever wants to receive. It was from my mom and her car was surrounded by fire. At the same time that I was taking my mom’s call, my dad and stepmom were sending me videos of several fires on the opposite side of town […]
Class-Action Lawsuit Seeks Coverage for Income Lost in Pandemic (NY)
The looming battle over lost-income insurance claims during the coronavirus pandemic has migrated from the New York State Legislature to a courtroom in Chicago, the Real Deal reports. A Las Vegas-based company called Vegas Image has filed a class-action lawsuit in federal court in Chicago, arguing that its lost-income insurance policy, also known as business income […]
Condominium Found To Have No Liability Coverage When Association Member Sues Association Which Contains Certain Exclusions
A recent case decision, Mt. Hawley Insurance Company v. Aquasol Condominium Association, Inc.,1 should have all association board members, condominium property managers, and condominium general counsel asking their insurance agents what will happen if their own association members sue the association. A recent case says there is no coverage for the cost to defend the […]
Co-op and Condo Boards May Be Able to Recoup Lost Income (NY)
Habitat: Co-op and condo boards are beginning to hear that some residents are getting laid off. They anticipate a cash crunch if people are unable to pay their maintenance or common charges. Is there any kind of insurance that’s going to help out? Read the article………………..
Force Majeure and Coronavirus
Force majeure law in the context of pandemics has never been fully explored in the context of construction contracts and disputes. In the wake of coronavirus and its impact on our economy, it is difficult to predict how a finder of fact would resolve claims for construction delays and disruption arising from manpower shortages, material […]
Renewing Your Association’s Insurance Policies (NC)
One of the most complex issues faced by HOA boards of directors is securing appropriate insurance coverage for the association. A number of factors go into determining what types of policies are needed, what can and should be covered by those policies, the amount of coverage needed and how to obtain the best rates possible. […]
Does My Association Really Need Director and Officer (D&O) Liability Insurance?
Based upon many years of serving as counsel for and defending associations in all types of litigation, my answer to the above question is yes. However, exactly what is Director & Officer (D&O) Liability Insurance, and what does it cover? Read the article………………………….
California FAIR Plan Can Offer Only Fire Insurance, Judge Says
A fund that offers only fire insurance to California residents in wildfire-prone areas can’t be required to provide coverage for other hazards such as flooding or theft, a judge ruled in late February. Read the article………………………..
Inadvertent Construction Defects Are an ‘Occurrence’ Under the CGL Insurance Policy
Whether property damage caused by defective construction work constitutes an accidental “occurrence” under the standard form Commercial General Liability (CGL) insurance policy is now highly dependent on which state’s law applies. Determining which state’s law applies to a particular construction defect claim is therefore critical and often outcome determinative. Read the article…………………………
Fidelity Insurance – Why Every Community Association Needs It (OH)
Virtually all community associations collect assessments to operate and maintain their property. Each community association that collects assessments likely has multiple people involved in handling the funds the association collects. Whether it is an individual volunteer board member or a management company employee, every person handling the funds has a fiduciary duty to handle those […]
Insuring Catastrophe
….as even more communities reckon with rising sea levels and catastrophic storms, the Federal Emergency Management Agency is encouraging homeowners and renters to “buy as much flood insurance as they can.” The agency provides over 96% of all flood coverage through its National Flood Insurance Program, making it the sole option for most Americans. But […]
When Your Association Should Consider A Buydown Policy (NC)
Insurance coverage is one of the many important aspects of managing and protecting community assets that HOA boards of directors must keep in mind. If associations are faced with large deductibles, one option to consider is a buydown deductible policy. Buydown insurance policies can sometimes prove to be a great benefit to homeowner’s associations depending […]