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 […]
Florida Federal Court Finds Insurer Must Defend Contractor in Defective Condo Construction Suit
The United States District Court for the Middle District of Florida recently granted summary judgment in favor of developer, KB Homes, ruling that Southern Owners Insurance Co. must defend KB Homes under various Commercial General Liability policies. Read the article……………..
Requirements would make contracts stronger (FL)
Q: We were recently advised that all of our contracts should include a requirement that the vendor’s insurance be primary insurance. What does this mean? Read the Q&A………………………
Insurance Industry Responds, and Owners May Pay the Price
Events of casualty damage, even when some of the damage is covered by an association’s insurance policy, can be very expensive for condominium and homeowners associations, primarily because association insurance deductibles are typically tens of thousands of dollars per claim. The deductible expense is really just the portion of the cost to repair that is […]
Wildfires may soon be uninsurable risks for homeowners
Homeowners in wildfire-prone areas of California and other Western states now have yet another worry: Insurers have issued an ominous warning that they could be facing a “wildfire deductible” in coming years or, even worse, the prospect of having their home insurance canceled altogether. Read the article………………..
Homeowner Association didn’t have quake insurance, residents of condemned Eagle River condos say (AK)
An Eagle River homeowner association was not carrying earthquake insurance when the 7.0 magnitude temblor struck on Nov 30., despite that insurance being a requirement of the homeowners’ agreement, residents say. The damage caused by the earthquake will potentially cost tens of thousands of dollars for each of the 42 condominium owners.River’s Edge Condos sits […]
Alabama Condo Complex Earns IBHS’ First-Ever Hurricane Gold Designation
Local developers in coastal Alabama that utilized Insurance Institute for Business & Home Safety’s (IBHS) FORTIFIED Commercial construction standards in the design of a coastal condominium complex and earned the first-ever FORTIFIED Commercial–Hurricane Gold. Read the article………………….
Ask Val: Finding Savings in Your 2019 Condo/HOA Budget (VA)
Question: I’m the Treasurer at [redacted Condo Association] and we’re working on the 2019 budget. What’s a good way for us to save money in the budget without compromising the health and maintenance of the building? Read the Q&A………………..
HOA insurance mistake #3: Forgetting the optional coverages (CA)
We all forget things. But forgetting certain ingredients in your homeowners association (HOA) insurance recipe can be a disaster. These optional coverages can look boring. They aren’t exciting like chocolate. They’re more like salt and yeast that you can’t see. But if you forget them, your insurance recipe can turn out like a disaster. […]
Ask Eli: Find Savings In Your 2019 Condo/HOA Budget (VA)
Question: I’m the Treasurer for my condo association and we’re working on the 2019 budget. What’s a good way for us to save money in the budget without compromising the health and maintenance of the building? Read the Q&A……………
HOA insurance mistake #2: Thinking small (CA)
Small Homeowners Association (HOA) insurance coverage can be cheaper. But that can cost high assessments later. The easiest mistake to make when reviewing your HOA insurance policy is to think too small. After all, many of the condo and homeowners associations in Napa, Calistoga, St. Helena, Yountville, American Canyon and Sonoma are small. And small […]
3 HOA Insurance Terms You Need to Know
With all the carriers, agents and policy options and terminology, HOA insurance can be a confusing subject for many people. Knowing these HOA insurance terms will help you better understand some aspects of the insurance process your association goes through to protect your community’s assets. Read the article………………
What should our Condominium Association Insurance Cover? Part II – Condominium Instruments & Association Insurance
Though not legally required, most condominium instruments provide that the association must carry hazard and liability insurance in order to protect the membership from disaster and the financial strain of litigation. The instruments may also specify the amount of the deductibles that the association’s various types of coverage will have; if not, the deductibles may […]
HOA Insurance Mistake #1: Not understanding the CC&Rs
Covenants, Conditions and Restrictions (CC&Rs) are the documents that govern your shared neighborhood, such as a condominium association, a townhome association, a mobile home park and even some neighborhoods with single-family detached homes. Read the article………………
After hail storm, HOA requires upgraded shingles that insurance won’t cover (CO)
When a summer hailstorm wrecked thousands of roofs across the Front Range, one Centennial neighborhood was hit doubly hard. Homeowners’ Association rules required many homeowners to do roofing upgrades that insurance companies won’t cover, so residents are looking at paying thousands in out-of-pocket costs. Read the article………………
What should our Condominium Association Insurance Cover? Part I – Intro and Statutory Framework (VA)
Insurance is one of those necessities of life that we avoid thinking about until a problem occurs. At that point, we realize that the details of our policies do matter and that we probably should have spent more time reviewing them before it was too late. Read the article………………
How to get results from insurance carriers (FL)
Q: Our condominium sustained significant damage from Hurricane Irma. It has been a year and our insurance carrier is offering a settlement that is woefully inadequate to address our damages. We have been advised that we have window damage and the roofs must be replaced. The insurance carrier is ignoring our demands. What do we […]
Why Your Community Association Needs Flood Insurance
Do you know what the most common and costly natural disaster is? According to the federal government, it is floods. The unfortunate lesson from the 2017 hurricanes is that even elevated areas can flood. In fact, 20% of flood claims filed under the National Flood Insurance Program are made by homeowners living in areas considered […]
Avoiding the Improper Denial of Association Insurance Claims (MI)
One of the primary functions of a condominium’s governing documents is to establish the respective responsibilities of the association and the co-owners for maintaining, repairing and replacing all property located within the condominium project. Often times, these responsibilities will be assigned differently by the same set of governing documents, depending on whether the property suffers […]
Loss Runs Are a Big Driver of Insurance Costs
A loss run shows the insurance losses that a building has sustained, and the figure greatly affects what a building pays for insurance. Every year, underwriters look at how the building is performing, its total number of losses, and whether they can be stopped, changed, or mitigated. Read the article………………
With D&O Insurance, Do It Once and Do It Right
Your directors and officers (D&O) insurance is the main policy that covers you as a board member. D&O can come in different forms. You can add an endorsement to your main package policy or you can have a separate stand-alone D&O policy. Generally speaking, the majority of D&O coverage that is added to the main […]
The Condo Coverage Puzzle
Have you ever watched someone try to finish a jigsaw puzzle with pieces missing? There are still a few hundred pieces to place, but there is one open space in the middle of a grove of trees that beckons to be filled. The puzzler spends hours combing through pieces that look like that hole. Eventually, […]
Community Associations Signing Assignment of Benefits May Be Giving Away the Kitchen Sink
If your Association has suffered a property damage loss, chances are the Association has been asked to execute an Assignment of Benefits (“AOB”) by a vendor. An AOB is a document signed by a policyholder – in this case the Association – that allows a third party, such as a plumber, contractor, roofing company, or […]
Congress Extends Flood Insurance Program Through November
The U.S. Senate has approved a short-term extension of the National Flood Insurance Program (NFIP) through November 30th. With the U.S. House of Representatives having already cleared the legislation, the measure now goes to President Trump for his signature into law. Read the article………………
North Carolina HOA & Condo Association Insurance Requirements & Considerations
As North Carolina HOA/condo attorneys, we are regularly asked “What insurance policy should our association buy?” Our answer is always the same: “Talk to your insurance professional.” That’s because while an HOA/condo attorney can assist with what insurance is required by state law and the governing documents, an insurance professional can best advise on what […]
Responsibility for Repairs Whose Insurance Pays? (NY)
There’s an old adage that ‘insurance is for pessimists’ – but that’s very much not the case. In the world of home ownership, and especially in shared communities, proper insurance is a critical factor in protecting not only your most important asset – your home – but also your pocketbook and your neighbors’ pocketbooks. It’s […]
Federal Court Ruling Vacates Hail Claim Appraisal Award, Highlights Appraiser Abuses (CO)
A recent decision by a Colorado federal appeals court could have significant impact on hail claims and appraisals across the country. Copper Oaks Master Home Owners Association v. American Family Mutual Insurance Co. involves a claim of hail damage that led to a dispute regarding damages. Read the article………………
Putting the Puzzle Together Regarding Insurance Coverage and Exclusions (FL)
In those pages and pages of insurance documents detailing your available insurance coverage you’ll also find exclusions explaining what is not covered in your insurance policy. There might, however, be some exceptions to those exclusions that should keep the claim from being excluded under the policy. Confused yet? Read the article………………
Carbon Monoxide Killed 2 People In A Condo. An Insurance Policy Exclusion Barred Coverage Of The Resulting Lawsuit (FL)
A federal district court in Florida has ruled that a pollution exclusion in an insurance policy issued to a homeowner’s association precluded coverage of a lawsuit seeking damages for the death of two people in a condo unit caused by carbon monoxide poisoning. Read the article………………
Every Board Needs a Fidelity Bond. Here’s Why (NY)
A board treasurer’s heart will always sink when he notices a pattern of odd expenditures in the monthly run of checks. With a little digging, the treasurer might learn that the managing agent paid a small amount each month to a phony vendor, a limited liability company set up by the agent. Read the article……………..
Pollution Insurance Is a Small Price for Big Peace of Mind (NY)
Some property managers advise co-op and condo boards that there’s no such thing as too much insurance coverage. Given the times we live in, many boards are now considering – and buying – policies to protect themselves against dangers that were unimaginable even a few years ago, such as cyber-theft or sexual harassment claims. And […]
Policyholder accuses State Farm and Firstline insurance companies of not covering losses to Brookhaven property (PA)
A policyholder whose apartment suffered physical loss and damages claims that a pair of major insurance companies have failed and refused to provide her the coverage that was due her in this situation, under those same policies. Miesja Cubito of Brookhaven filed suit in the Philadelphia County Court of Common Pleas on May 22 versus […]
Making Sure the Good Deed Goes Unpunished: Navigating Director and Officer Liability Insurance for Community Associations (NC)
(“Association”) acts through board members and officers who are volunteers and are generally willing to serve because they care about their communities. But in this day and age, they are often targets of member lawsuits. Accordingly, it’s recommended that all Associations obtain director and officer liability insurance to cover the costs of defending their directors, […]
Admiral Indemnity Company claims that it does not have duty to defend or indemnify condo association (IL)
company is suing River City Condominium Association; Michael Pyrchalla, owner of a condominium; and board members Donald Moore, Joe Sica, Ryan Palider, Micheline Magharious and Mark Mitrev for alleged breach of contract. Admiral Indemnity Company filed a complaint on March 15 in Cook County Circuit Court, alleging it has no duty to defend or indemnify […]
The Biggest Insurance Risks for Associations: Having the Wrong Kind of Insurance or Not Enough of It
When we talk about insurance, which we do frequently, we talk about its complexities, and there is no question that insurance decisions are complicated, confusing and often intimidating for condo boards. But it isn’t the complexity of insurance that creates the biggest risks for board members and the association’s they govern; it’s the type of […]
Can Insurance Appraisers Favor and Advocate For The Party That Selected Them? (CO)
This is a question the Colorado Supreme Court is set to resolve after recently granting Owners Insurance Company’s petition for writ of certiorari in Owners Insurance Company v. Dakota Station II Condominium Association, Inc., 2018 WL 948601 (Col. Feb. 20, 2018). The Colorado Court of Appeals answered this question “yes” in the opinion being appealed […]
Code RED
I was recently participating in a mediation for a client condominium association. We are pursuing a first party insurance claim for property damage discovered by the client. Due to the amount of repairs necessary for the project, the client triggered certain code upgrades required by the County and fire department. The upgrades were both unexpected […]
When Accidents Happen, Notify Your Insurer Pronto (NY)
There’s a collision in your co-op’s parking lot that may have resulted in personal injury to one of the drivers. What should the board do? Immediately inform the property manager about the accident, direct her to notify your insurance carrier in writing, and insist on written confirmation that she has done so. Read the […]
Hanover unit not obligated to cover builder on roofing project (WA)
A unit of The Hanover Insurance Group Inc. was not obligated to provide coverage to a construction firm being sued over work it had performed on condominium units because of a policy exclusion, says a federal appeals court, in upholding a lower court ruling. Edgewood, Washington-based Chase Construction North West Inc. was sued by Lakewood, […]
Eleventh Circuit Enforces “Eight Corners” Rule And Affirms Denial Of Insurer’s Request For Trial On Veracity Of Factual Allegations In Underlying Complaint
The U.S. Eleventh Circuit Court of Appeals, applying Florida law, recently affirmed that an insurer was obligated to defend its insured and not entitled to a jury trial on the veracity of certain factual allegations in the underlying complaint which gave rise to the insurer’s duty to defend. Addison Ins. Co. v. 4000 Island Blvd. […]
What is D&O Liability Insurance?
The Directors and Officers Liability coverage is an insurance that protects officers and trustees from being held accountable for the actions they took or failed to take as members of a board. It offers liability coverage for the damages that ensued alleged wrongdoings of a member. This policy can cover the liability of officers and […]
Chapter 558 Ruled a ‘Suit’ Under Standard Commercial General Liability Insurance Policies (FL)
On Dec. 14, 2017, in Altman Contractors v. Crum & Forster Specialty Insurance, No. SC15-1420 (Dec. 14, 2017), the Florida Supreme Court held that the pre-suit notice of claim process under Chapter 558 of the Florida Statutes is a “suit” as defined by standard Commercial General Liability Insurance Policies, and thus, could require insurance companies […]
No flood insurance for the condo? It’s potentially negligent to go uncovered (FL)
Q: We own a unit in a small condominium. Until recently, we have had flood insurance although we are not in a flood zone. Now a new owner is pushing for it, and the board is caving in. Are they legally required to have flood insurance if most owners do not want to pay the […]
Hurricane Insurance, Part 2: 4 Tips for Ensuring Comprehensive Hurricane Insurance Coverage
When hurricanes roll in, violent weather in the form of extreme rain and high-speed winds results in loss of life and property alike. We saw the devastating results near the end of this year’s hurricane season during Tropical Storm Lidia, Hurricane Irma and Hurricane Harvey, and people who were affected are still rebuilding their homes […]
Hurricane Insurance: 6 Tips for a Successful Claims Process
In the wake of Hurricane Harvey, Hurricane Irma and Tropical Storm Lidia, many board members and homeowners are now left dealing with the destruction these storms left in their wake – it’s estimated that Hurricane Irma alone caused more than $62.87 billion in damages, and these storms combined killed hundreds of people. Even though these […]
Not Quite So Limited: Are Sublimits Sure to Limit Your Level of Coverage?
A critical component of any insurance policy is of course its limit, which is usually the most an insurance company must pay for a loss. But many property insurance policies include “sublimits” that provide a lower limit for particular losses. Read the article……………..
Unit Fire Increases Association Insurance Premiums
What happens when a fire caused within a condominium unit destroys that unit, some common area, and damages other units? It becomes an expensive situation for the association. Even though insurance should pay for all of the damages, the association’s insurance premiums going forward could increase dramatically. This is exactly what happened to a small […]
Insurance Carriers Exclude Color Matching Requirements from Policies
The summer of 2017 saw a number of severe storms in the Midwest, with resulting insurance claims. As policyholders have made those claims, some have been surprised to see new provisions in their insurance contracts. Things are not always black and white in insurance policies, especially when it comes to the impact of a Minnesota […]
Insurance Carriers Exclude Color Matching Requirements from Policies
The summer of 2017 saw a number of severe storms in the Midwest, with resulting insurance claims. As policyholders have made those claims, some have been surprised to see new provisions in their insurance contracts. Things are not always black and white in insurance policies, especially when it comes to the impact of a Minnesota […]
Why Does Our Association Need an Annual Insurance Review?
You know that your association needs to have the right insurance coverage in place. So you have property coverage, liability insurance, workers’ compensation, directors and officers (D&O) and an umbrella policy in place. Premiums are paid regularly and on time. Did you know that’s not enough? Insurance is one area, especially property and liability coverages, […]