Insurance for Community Associations Articles
Property & Casualty Articles
- Community Associations’ Use of Best Efforts to Obtain Insurance (FL) May 20, 2024Each year, condominium associations work to obtain insurance at reasonable rates in an effort to comply with their statutory obligations to use “best efforts” to obtain insurance. In recent years, however, insurance rates have increased significantly, causing associations to question whether insurance is required at any cost. While best practice is, of course, for an association to maintain adequate insurance, an association may wonder whether “best efforts” means it must obtain insurance at any cost. Read the article…………………………….
- Why residents living around this N.J. lagoon finally have ‘control over our own destiny’ (NJ) May 20, 2024Agroup of homes directly within feet of a New Jersey bay can now manage the man-made waterway how it wants after acquiring the inlet from a municipality. The sale of Anchorage Poynte Lagoon in Egg Harbor Township ends several years of setbacks by a local homeowners association to gain control over the channel off Stern Drive. Read the article…………………………….
- Horseshoe Bay POA vs. resort back in court (TX) May 20, 2024A visiting district judge is considering granting injunctive relief to the Horseshoe Bay Property Owners’ Association from the Horseshoe Bay Resort following a temporary restraining order hearing on May 16. The order request is part of a lawsuit filed by the POA against the resort on May 6 in the 33rd Judicial District Court in Llano County. The POA is claiming breaches of contract by the resort and seeking between $200,000 and $1 million in damages, among other forms of ...
- Understanding Roles: The Board vs. Management Company in HOAs May 20, 2024Homeowners’ Associations play a pivotal role in maintaining the integrity and functionality of residential communities. Ideally, at the heart of every HOA’s operations are two essential entities: the Board of Directors and the Management Company. While both entities work towards the common goal of enhancing community living, their roles and responsibilities are distinct. Read the article…………………………….
Property & Casualty Article Archives
Directors & Officers Insurance Articles
- A Guide To HOA Board Responsibilities May 2, 2024Serving on the board of a homeowner association is a high calling. Well meaning volunteers are elected to roles that are critical to the well being of the HOA. But what exactly is a board member supposed to do to fulfill this charge? Read the article…………………………….
- 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…………………………….
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
- Boca Raton HOA Sued Over Electric Scooter Accident (FL) May 7, 2024A Boca Raton Homeowners Association is being sued by a man who claims the HOA’s poorly maintained parking lot led him to crash his electric scooter. Robert Clarfield claims that the Villas of Boca Barwood is responsible for his accident. Read the article…………………………….
- 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…………………………….
General Liability Insurance Articles Archives
Insurance – General Articles
- Community Associations’ Use of Best Efforts to Obtain Insurance (FL) May 20, 2024Each year, condominium associations work to obtain insurance at reasonable rates in an effort to comply with their statutory obligations to use “best efforts” to obtain insurance. In recent years, however, insurance rates have increased significantly, causing associations to question whether insurance is required at any cost. While best practice is, of course, for an association to maintain adequate insurance, an association may wonder whether “best efforts” means it must obtain insurance at any cost. Read the article…………………………….
- Iowans struggle to find homeowners insurance as companies pullout of the state May 18, 2024David Langston is the President of Beaver Creek Homeowners Association and one of his many tasks is making sure the 17 homes on East Post Court have insurance for what the HOA is responsible for, the outside of these homes. But in January, he got work that Pekin Insurance, the company they’ve used for years would no longer cover their homes. Read the article…………………………….
- How condo insurance works (WA) May 16, 2024Condo or townhome insurance offers coverage similar to homeowner insurance. It’s for people who own an individual unit within a larger condo or townhome community. For people living in these communities, there’s typically two insurance policies that cover different parts of their living space. One is paid for by owner dues and covers certain losses for the community’s Homeowner’s Association (HOA). The other is an insurance policy the owner buys, which is sometimes referred to as an HO-6 policy. These ...
- Not Crazy: Insurance Premiums May 11, 2024Before we look at the data, I can speak about my local experience in Southwest Florida. Specifically, my Homeowners Association is required to carry insurance on the external part of the townhomes. When I joined the board in 2021, our annual premium was $15k. By the end of the year, the carrier went into receivership. In 2022 our premium was $30k. And in 2023 it was closer to $60k. We won’t know until this summer, but we budgeted for the ...
Insurance – General Articles Archives
Owners Insurance Articles
- How condo insurance works (WA) May 16, 2024Condo or townhome insurance offers coverage similar to homeowner insurance. It’s for people who own an individual unit within a larger condo or townhome community. For people living in these communities, there’s typically two insurance policies that cover different parts of their living space. One is paid for by owner dues and covers certain losses for the community’s Homeowner’s Association (HOA). The other is an insurance policy the owner buys, which is sometimes referred to as an HO-6 policy. These ...
- Florida tightens condo insurance claim deadlines to ease disputes May 4, 2024New legislation signed into law this week sets clearer, stricter deadlines for filing loss assessment coverage claims by condominium owners, aimed at reducing legal disputes and streamlining the insurance claim process. Read the article…………………………….
- What you can expect to pay for NYC condo or co-op insurance May 3, 2024New York City has never been particularly cheap, and annual insurance costs make living in the city even more expensive for condo and co-op owners. Condo and co-op insurance—which protects your individual apartment—normally runs several hundred dollars a year. But premiums have gotten more expensive since 2020 thanks to inflation, higher construction costs, and a slowdown in the supply chain, said Loretta Worters, vice president of media relations at the Insurance Information Institute. Read the article…………………………….
- What You Need To Know About HO6 Insurance May 1, 2024Life in a townhome offers a vibrant blend of community and convenience but just like any home, unexpected events can disrupt your peace of mind. That’s where HO6 insurance steps in as your reliable ally! Think of it as a security blanket protecting your personal belongings from unexpected downpours, both literal and metaphorical. Many people wonder… what exactly is an HO6 policy, what it covers, and how it helps me navigate a storm that throws townhouse life into disarray. We’re ...