Last week we reported on a sticky situation in Brooklyn. After a devastating fire in 2019, more than three-quarters of the 54 unit-owners in a Sunset Park condominium voted not to restore the building, which cleared the way for all unit-owners to split the proceeds of a building sale and any payouts from the condo’s […]
Calistoga Ranch sued by homeowners over $100M insurance breach (CA)
Homeowners at Calistoga Ranch resort have filed a $100 million lawsuit against Auberge Resorts for failing to provide adequate insurance coverage for losses sustained in the Glass Fire. Read the entire article……………………………….
Insurance May Not Cover Damages to Homeowners Association Common Spaces. This is Where Loss Assessment Coverage Comes In
Whether you live in a single-family house, a condo, or an apartment, having property insurance is important to protect your personal items and your liabilities, among other things. But when you belong to a homeowners association (HOA), you’re responsible for more than just your own property — that’s why you should also consider getting loss […]
The Importance of Loss Assessment Coverage
In a situation where the entire community is assessed for a deductible, coverage is generally available under the loss assessment portion of the HO6 policy. Loss assessment coverage is triggered when everyone in the community is assessed for an association’s deductible. 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……………………………….
Your Complete Guide to HO-6 Insurance
Owning your condo is a wonderful feeling and an amazing achievement. But have you taken home insurance to cover you against factors that are beyond your control? HO-6 is a type of homeowners insurance designed specifically for the needs of condominium owners. Read the entire article……………………………….
This is where Americans pay the most for condo insurance — it’s not California or New York
Americans looking to buy a condominium or co-op this spring should factor in the cost of insurance before signing on the dotted line. And a new analysis shows that where you choose to live will greatly influence how much you can expect to pay to protect yourself. Read the entire article……………………………….
Umbrella Insurance Policies Have Sprung a Leak (NY)
Co-op and condo boards seeking protection from excess liability – such as a serious injury to a worker during a facade project – are finding that the umbrella policies of yesteryear, with their high coverage limits and relatively low premiums, are a thing of the past. In today’s so-called “hard” insurance market, the math has […]
Why an HO-6 Policy and Proper Loss Assessment Coverage Is Important to Condo Owners
Many people living in community associations are under the impression that they’ll never have to shovel snow again, everything is handled, and everything on their property is covered by the association’s insurance. Unfortunately, this isn’t the case, and insurance coverage is one of the most financially dangerous myths. Many things are covered, but not all […]
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 […]
If you own a townhouse and have a mortgage, you’ll need homeowners insurance — but there’s more than one option
If you bought a townhome and want to get homeowners insurance, you might not be sure what to get: homeowners or condo insurance. The determining factor that will help you decide is whether or not your townhouse is part of a condo/homeowner association. Read the article………………………………..
What Is Loss Assessment Coverage?
Owning a condo often means being part of a condo association that manages your multi-unit structure’s common areas, including providing insurance for them. Read the article………………………………….
Condominium Insurance Explained (FL)
Q: We recently discovered that the air handler drain in the unit above us became clogged resulting in water damage to our unit. Our insurance covered some of the costs, but not all. We were not in the unit when this occurred and it was some time before we discovered it, resulting in mold. Would […]
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 […]
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………………………………..
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 […]
Inside Condo Insurance
Condo owners might not own the building and the land their home sits on, but they still need good insurance for their unit and personal belongings. That’s where condo insurance comes in. Also known as an HO-6 insurance policy, condo insurance covers you for problems that are not covered by a homeowners association (HOA) master […]
Hail Season and Water Leaks! Homeowners Check Your Loss Assessment Coverage (CO)
Damages resulting from hail storms and water leaks are two of the most common insurance claims for townhouse and condominium associations. Read the article…………………………
Loss Assessment Coverage
Loss assessment coverage protects condo owners from unexpected expenses that result from damages to the building or common areas of their homeowners association (HOA). Read the article……………………………..
Working from home: Experts say it’s important to understand insurance coverage, liability
When the novel coronavirus pandemic caused Colorado businesses to send hundreds of thousands of their employees home to work, businesses suddenly were confronted with a workforce that bears all of its insurance burdens and risks outside the normal office environment, creating additional concerns for homeowner insurance carriers. Read the article……………………………
Who pays for damage done to your condo? (WI)
One of the most common complaints that we get from condo owners is that damage took place at their unit, and now they are on the hook for repairs. For many, this does not seem fair. Many are especially upset if the damage was by something within the building or from another unit. Read the […]
Condo owners face potential insurance double whammy
Consider this scenario as a condo owner: Your bathtub overflows and causes water damage to the units below you. The damage is in the tens of thousands of dollars, but less than the deductible contained in the strata/condo insurance your condo corporation has on the building. Read the article……………………….
Watch out, homeowners. Your insurance rates are about to jump (FL)
Florida homeowners had better watch their wallets in 2020 — and ask their insurance agents to shop for cheaper deals. The torrent of insurance price hikes predicted after Hurricane Irma barreled up Florida’s gut in September 2017 is here. Read the article……………………….
What are Replacement Cost Valuations?
You know that your association needs to have insurance. This is particularly the case for condo buildings, where your insurance covers the exterior structure and part of the interior, whilst the owners’ insurance covers the interior of their unit. However, a lot of condo associations do not know that they need to have insurance for […]
Protecting homeowner association rights after structural damage occurs (FL)
After Hurricanes Michael and Irma, the amount of damage that was left behind throughout the state of Florida posed a real problem for condo buildings and HOA communities. These damages were so extensive, and HOA communities across Florida are still trying to recover and receive payment from their insurance companies. Read the article…………………………….
The HOA Insurance Coverage Two-step (CO)
When damage occurs in condominiums or townhomes, one of the main questions is whose insurance is left holding the bag. Does the homeowner’s insurance pay? Or does the Homeowners Association’s? An Association’s responsibilities are laid out in their Covenants, Conditions, and Restrictions (“CC&Rs” or “Declaration”). However, when it comes to allocating insurance responsibilities between homeowners […]
Who is Responsible for Carrying Insurance on a Condominium? (MI)
For many people, purchasing a home is the largest investment they will make in their lifetime. While owning real estate should be considered an investment, it should also be viewed as a risk. Aside from the risk that the property will decrease in value, every homeowner should consider the risk that the property could be […]
Insurance Myths: Does “Full Replacement Cost” Insurance Requirement Really Mean an Association has to Cover Everything?
I recently had a conversation with an insurance agent who acknowledged he “didn’t deal much with homeowners associations.” His client lived in an association, and had suffered damage within his townhome that the agent thought should be covered under the association’s master insurance policy. He believed that, if a declaration states that the association’s master […]
Shaken up about earthquake insurance (CA)
Q: I live in a 100-plus unit condo complex without HOA earthquake insurance. I have CEA earthquake insurance for my home. Have you written any articles I could read on how to cover myself if my building suffers structural damage? Read the Q&A………………………….
Insurance 101 for condo owners (BC)
Now you’ve bought the condo, what about insurance? First-time condo owners need to carefully consider the insurance they need – and what the strata corporation covers – to be adequately protected if there is a claim Read the article………………………
YOUR HOA INSURANCE RESPONSIBILITIES: HO-3 VS. HO-6
Owning a condo, townhouse or any other type of home is exciting, but comes with a lot of responsibility. From paying monthly bills on time to keeping up with housework and having the right homeowner’s insurance in place, the to-do list can often seem never-ending. Buying homeowner’s insurance for a home in an HOA or […]
Burst Sewer Pipes, Condos, and Coverage
An interesting question came in to the Academy of Insurance recently, edited below for space and to avoid disclosing any identifiable details. “I live in a condo building. A sewage pipe burst, causing damage to my unit and a few other units. An adjuster came out representing the association’s policy and said that the association’s […]
Insurance claim denied after destructive 11-feet gator break-in (FL)
A Clearwater woman became something of a celebrity when a giant alligator broke into her home back in May. But now, she says she’s getting anything but the A-list treatment from her insurance company as she tries to claim the damages the gator left behind. Read the article……………………
Protecting Your Home from Floods (NC)
The concept of flood zones has been changing as more areas which historically haven’t flooded have begun seeing more instances of water intrusion whether it be from rain, nearby bodies of water or a combination of both. There are more than 20,000 communities in the United States which have been placed into a category of […]
Burst Sewer Pipes, Condos, and Coverage
We had an interesting question come in this week so I thought I would address it publicly. I’ve edited the question for space and to avoid disclosing any identifiable details. “I live in a condo building. A sewage pipe burst, causing damage to my unit and a few other units. An adjuster came out representing […]
Part III: Who Pays When Causation, Claims and Coverage Cross? (NJ)
In week one of our three-part series, we learned that the association is generally not responsible for property damage in a unit barring some negligence on its part or available insurance coverage. Last week, we examined the types of property casualty insurance typically maintained by a condominium association. In this final week of our three-part […]
HO-3 vs HO-6: Do You Know What Type of Homeowners Insurance You Need?
If you are a homeowner in a community association, whether single family, condominium, or townhome, are you certain you have the correct form of insurance? When you own a home in an association, you may be told somewhere along the line that the association is providing insurance. This is probably true. However, as a homeowner, […]
New Final Rule Offers Welcome Relief And Guidance On Private Flood Insurance Requirements
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Farm Credit Administration and the National Credit Union Administration (the Agencies) recently released a final rule offering significant relief and guidance to institutions in connection with accepting private flood insurance for properties […]
San Diego condo owner says insurance rate increased by 45%, blamed on the deadly Camp Fire (CA)
A San Diego condo owner says his insurance rate increased by a whopping 45 percent. He says his insurance agent blamed it on the deadly Camp Fire, 600 miles away. Team 10 Investigative Reporter Jennifer Kastner found out that’s no excuse. Read the article………………….
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………………..
Property Insurance Basics: What Coverage Can You Expect When You Decide to Get Your Condo Insured?
While your condominium association dues will go towards the building’s insurance and covering communal areas through a HOA policy, it is up to individual unit owners to insure their own condominium unit. Condo owners typically take out condo insurance (sometimes referred to as HO-6) to cover their belongings and liability within their unit. Read the […]
Flooding from broken pipeline in Northeast Richardson creates insurance fiasco
When a major underground pipeline ruptured Aug. 30 in the Knolls of Breckinridge development, 1-2 feet of water flooded the home of Sylvester and Martha Lee. With the question of liability hanging in the balance, the Lees are still living there today. Their insurance company has agreed to pay the cost of structural repairs but […]
Your Condo Unit Owner’s Insurance: Do You Know What’s Really Covered?
Your condo is more than a roof over your head: It’s your home. So make sure you understand insurance basics and coverage options for your unit. Read the article………………
Learn Condo Insurance 101
Condo insurance provides coverage for the inside of your condominium; the external areas fall under the jurisdiction of your condo association and must be covered under the association’s insurance policy. Depending upon the specifics of your condominium association’s master policy, your condo insurance may include coverage for: Read the article………………
Is your homeowners association policy broken? (CA)
I was speaking with a friend the other day, and the topic of HOA insurance came up. Let me share some of my thoughts on our discussion. You love your condo. You love that all the “big things” are taken care of by the association. Things like lawn care, outside maintenance, roof repairs, and of […]
Understanding Flood Zones in Florida
As we approach the height of hurricane season, it’s a good time for property owners to brush up on their understanding of flood zones and how they impact flood insurance. Below are some resources and answers to frequently asked questions on flood zones: Read the article………………
One Lapsed Homeowner’s Policy Can Swamp a Building (NY)
If you live in a condo or a co-op, at some point you’ll probably be required to buy a homeowner’s insurance policy, also known as an HO6 policy. What you may not know is that there are many people who don’t have active homeowner’s insurance policies. How can that happen? Read the article………………
Kass: Problem in your condo unit? You might have to pay the deductible.
Many condominium projects in the Washington area are old, having been converted from previous rental apartment buildings. Pipes periodically break or leak, often causing thousands of dollars in damage. Who pays? The unit owner or the association? Every condominium association has insurance coverage, typically called the “master policy.” This is in addition to the policy […]