Insurance for Community Associations Articles
Property & Casualty Articles
- The Importance of Professional HOA Contracts (GA) April 26, 2024Community associations cannot accomplish all the tasks they are responsible for without getting outside professionals to help maintain and service their assets. With every agreement to provide a service or to supply materials comes HOA contracts. Read the article…………………………….
- Condo owners in costly fight vs. developer (IA) April 26, 2024The five women estimate it has cost $50,000 so far to sue to try to gain control of their condo association, and here’s the kicker: They are also paying the attorney’s fees of their adversary as their case winds its way to Iowa’s Supreme Court. Read the article…………………………….
- What’s next for condominium insurance? Current realities and what condo boards can plan for (ON) April 26, 2024In recent years, we navigated a challenging insurance environment known as a “hard market”. This term describes a period when multiple factors make it more challenging to secure and maintain suitable insurance coverage. In essence, the insurance companies were paying out more in claims than they were collecting in premiums. Read the article…………………………….
- Rising insurance costs push aspiring condo buyers into a tough spot (HI) April 26, 2024Housing affordability is getting squeezed by a new pressure — the cost of insurance. At a recent residential real estate roundtable held by Pacific Business News, industry leaders expressed concerns that soaring insurance costs are pushing home ownership further out of reach for many. The condo market is getting hit especially hard. Read the article…………………………….
Property & Casualty Article Archives
Directors & Officers Insurance Articles
- Director Elections—What Could Possibly Go Wrong? April 1, 2024Director elections are one of the most important powers association members have, so it makes sense that owners take elections seriously. Whether voting in an election and/or running for the board, the process and its results are personal to association members. Therefore, any appearance of impropriety or error in the process is oftentimes met with objection, suspicion, and unfortunately, hostility. Read the article…………………………….
- Board Member Code of Conduct (FL) March 30, 2024The law specifically provides that Board members have a fiduciary relationship with the owners and requires Board members to disclose conflicts of interest. However, the law does not specifically address acceptable (and unacceptable) behaviors for discharging these responsibilities. As such, a Code of Conduct for Board members is a good idea to have so that all Board members have a better understanding of their responsibilities as Board members and the limitations of their office. Read the article…………………………….
- Treasurer’s Payment Mistake Requires Defense Coverage Under Property Association’s D&O Policy March 28, 2024A federal court recently ruled that a carrier must defend its policyholder against a claim involving the treasurer’s erroneous payment to a scammer. The ruling shows that a “wrongful act” under a D&O policy need not be an egregious act of wrongdoing, that coverage may hinge on whether extrinsic evidence can establish coverage, and that breach of contract claims are not always uninsurable as a matter of law. Read the article…………………………….
- Business Judgment Rule: How to Protect Your Board (NY) March 18, 2024The recent case of Levy v. 103-25 68th Ave. Owners, Inc. offers some valuable insights for property managers and board members within cooperative housing communities. In June 2018, the Levys commenced this action against the co-op defendants and the occupants of the neighboring apartment, alleging, inter alia, that the co-op defendants exceeded the scope of their authority, discriminated against them for having children, and acted in bad faith. Read the article…………………………….
Directors & Officers Insurance Article Archives
Condominium Insurance Law
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- Thu, 18 Apr 2024 10:00:00 +0000: Beware of Claims Deadlines! Florida Condominiums Have Supplemental and Reopened Claims Statute Deadlines - Condominium Insurance Law
Florida is the only state to address and provide a statutory definition for a “re-opened claim” or a “supplemental claim.” Florida’s law is not a consumer protection law. Instead, it is an insurance company protection law. The current edition of Florida’s Supplemental and Reopened claims law reads as follows: “627.70132 Notice of property insurance claim.— (1) As used in... Continue Reading
- Tue, 13 Feb 2024 11:00:00 +0000: Colorado’s FAIR Plan Expands Safety Net for At-Risk Properties - Condominium Insurance Law
As Merlin attorney Jonathan Bukowski previously discussed, the Colorado Common Interest Ownership Act (CCIOA) sets forth specific minimum insurance requirements for common interest communities, such as condominiums and homeowners associations (HOAs). These requirements are designed to ensure that common elements and, in some cases, individual units are adequately insured. In addition to the CCIOA, in May... Continue Reading
- Fri, 09 Feb 2024 11:00:00 +0000: Understanding the Interplay Between an Individual Unit Owners’ Policy and Their HOA Policy is Crucial for Submitting Condominium and Townhome Claims in California - Condominium Insurance Law
Of the 39 million potential insureds making up California’s population, over 14 million – or over 35% – live in homeowners association communities. Therefore, understanding whether their property damage claims fall under their individual or association insurance policies is essential to properly recovering insurance benefits. Equally essential is understanding which policy takes priority when property... Continue Reading
- Thu, 25 Jan 2024 17:48:26 +0000: Is Deductible Buy-Down Insurance A Wise Choice For Condominiums? A Basic Guide For Association Boards and Property Managers - Condominium Insurance Law
Deductible buy-down insurance, also referred to as buyback deductible insurance, is designed to reduce the deductible that an insured party would have to pay in the event of a claim. It operates on a simple principle: by purchasing a deductible buy-down policy or endorsement, the insured party can reduce or even eliminate the deductible that... Continue Reading
- Mon, 11 Dec 2023 11:00:00 +0000: Florida Condo Associations: Dodging Floods and Drowning in Premiums? - Condominium Insurance Law
Well, folks, another hurricane season in Florida has come and gone, leaving us with nothing but a collective sigh of relief and the looming specter of potential disaster. In the spirit of commemorating the official end of hurricane season, I urge you to take a moment to reflect on your condo association’s insurance choices. Because... Continue Reading
Condominium Insurance Law Archives
General Liability Insurance Articles
- Understanding Community Association Security Measures and Liabilities April 16, 2024A recent article from the Community Associations Institute in the organization’s excellent Ungated blog focused on important security and liability issues for associations. It discussed how communities can be exposed to legal liabilities for negligent security and crimes occurring on association property. Read the article…………………………….
- Resident calls on the community for help, City and HOA said their hands are tied (OK) April 16, 2024An Owasso resident calls on the community to help fix a broken park bridge after the city and neighborhood HOA said their hands are tied. The bridge in the Three Lakes neighborhood is completely falling apart. With the unkept conditions, it’s a huge liability, and danger to the kids who play or those who want to enjoy a walk or a bike ride. Read the article…………………………….
- Family of deceased man files lawsuit against Pompano Beach condo for failing to protect its residents (FL) April 11, 2024The family of a deceased man is suing a Pompano Beach condominium, which they said, is responsible for the death of their family member. The family said 87-year-old Vincenzo Cammalleri died, and his friend is still badly ill, after getting infected with Legionnaires disease, a pneumonia that spreads when a bacteria is inhaled or when contaminated water is swallowed. The family said Cammalleri and his friend got sick while using the condominium’s hot tub. Read the article…………………………….
- Anatomy of a fall: Florida condo case to decide who to blame for dangerous balcony April 8, 2024On the second day of vacation with his wife and kids, David Casey was sipping a glass of pinot noir on the balcony of a rented condo in the Florida Panhandle, taking in the night view of the beach. As Casey leaned against the wooden railing on the third-floor unit in Seacrest, it suddenly gave way – “the next thing I knew, I was falling to the ground,” he said – and he plummeted backward into sand dunes and foliage ...
General Liability Insurance Articles Archives
Insurance – General Articles
- 4,800 Claims Handled by Unlicensed Adjusters in Florida After Irma, Lawsuit Says April 26, 2024In one of the suits, brought by a Miami condominium association, the plaintiffs produced records they said showed that after Hurricane Irma, almost 4,800 claims for Heritage Property & Casualty Insurance Co. were handled by unlicensed adjusters. Of almost 35,000 Heritage claims after Irma and Hurricane Michael, in 2017 and 2018, some 14% were handled by unlicensed adjusters, potentially in violation of state laws and regulations, according to the lawsuit filings. Read the article…………………………….
- ‘Everyone is selling’: Florida condo owners feel crush of rising insurance costs April 25, 2024The rising cost of home insurance for one Palm Beach County condo is a story that seems to playing out at condos all across Florida. “It’s shocking to watch in a few years to go from under $100,000 to pushing a half a million,” Christina Auer said. “It’s out of line.” Insurance experts tell WPTV that the days of cheaper policies are not coming back. Read the article…………………………….
- How climate change risk is reshaping the homeowners insurance market April 22, 2024The effects of climate change are becoming more pronounced, both globally and domestically. In the U.S., the consequences of changing weather patterns and climate-related disasters are impacting various aspects of the economy, with homeowners in particular feeling the cost in a very direct way. Read the article…………………………….
- Hawaii’s Insurance Crisis as Premiums Nearly Quadruple April 18, 2024Sue Savio, president and owner of Insurance Associates and former president of the Hawaii Independent Insurance Agents Association, told Insurance Business America that insurance costs for condominiums have risen by 100 percent to 1,000 percent in certain areas. Cj Paet, vice president of operations for Cadmus Properties, told local news website KITV 4 Island News that premiums for one condominium in the Piikoi area managed by his company have jumped from $70,000 to $270,000 a year. Read the article…………………………….
Insurance – General Articles Archives
Owners Insurance Articles
- Florida’s Home Insurance Industry May Be Worse Than Anyone Realizes April 24, 2024Seven property insurers in Florida went bankrupt in 2021 and 2022. The bankruptcies left thousands of homeowners scrambling to get new coverage, which often came with a big increase in cost. Worse, many had outstanding claims for hurricane damage that had not been addressed. Read the article…………………………….
- 2 Articles on Florida’s Insurance Problems April 23, 2024Move, cut back or go bare: Florida seniors juggle skyrocketing costs, impossible choices Florida homeowners insurance is skyrocketing: Here’s what to know
- More homeowners forced into California Fair Plan coverage April 16, 2024Most people never hear about the California FAIR Plan until their homeowner’s insurance gets canceled. “It’s not a normal home insurance policy,” said Amy Bach, executive director of the nonprofit United Policyholders. “It only covers fire, lightning, internal explosion. It doesn’t cover water damage, leaks, your toilet overflows.” Read the article…………………………….
- Coastal property owners yet to embrace roof-girding grants (NC) April 15, 2024Maybe one North Carolina insurance provider should join the industry trend and advertise: “Hello Beach Plan policyholders! Do you need a new roof? Want to save on your property insurance? How about we help you out with as much as $8,000 toward a much stronger roof that is fortified to withstand storms? And don’t worry — we’re not asking you to pay it back.” Read the article…………………………….