HO6 policies insure individual unit owners. These polices come in many forms and provide various levels of coverage. If you buy only on price and your agent sells you a “cheap” policy, you are going to be sorry when you have a loss. Continue Reading Condominium Owners Purchasing Insurance Beware! Buy The Right HO6 Policy From a Qualified Agent
Hurricane season is here. The Weather Channel’s 2021 Atlantic Hurricane Season Outlook predicts another above-average season, meaning policyholders must take the time to ensure they are adequately prepared. Condominiums and other multi-family properties are strongly encouraged to safeguard their facilities and addresses any coverage gaps or underinsurance issues with their policy. Continue Reading 2021 Hurricane Season Is Here – Are You Covered?
Shower pan losses are common occurrences. For a Florida condominium owner who has a shower pan loss within their condominium, the homeowner’s policy usually covers the damages caused by the water but does not pay to repair the damaged or broken shower pan.1 However, what happens when the unit upstairs experiences a shower pan link that impacts your unit? Continue Reading Is a Shower Pan Leak Covered By Your Condominium Insurance?
A condominium can be defined as a single real estate unit in a multi-unit development in which a person has both separate ownership of a unit and a common interest, along with the development’s other owners, in the common areas.1 Insuring your condominium is often not so easy, especially since it usually requires that you are covered by both your condominium’s master policy and your own separate individual insurance policy. It’s important to closely review the condominium association’s declaration document, which details what real property the unit-owner is responsible for insuring separately. Continue Reading Understanding How Your Condominium Insurance Works—The Individual vs. Master Policy Coverages
Obtaining the proper insurance coverage for the association is one of the key duties of property managers and boards of directors. I once was giving a presentation at a national convention at the Condominium Associates Institute (CAI) with a co-presenter, Suzanne Harris. We were discussing the importance of obtaining the right insurance and selecting the right agent. Continue Reading The Big Tip For Making Certain Association Insurance Agent Is Getting The Right Coverage
Associations normally have by-laws that require the maintenance of a uniform appearance. Repairs usually have to follow this rule so the property does not lose value and lose the cosmetic appeal which community owners desire after a loss. Agents should not sell policies to Associations which require a uniform appearance. Continue Reading Associations Which Require Uniform Appearance Should Not Be Sold Policies With Anti-Matching Language
One of the largest potential exposures that association property managers and board of directors face is underinsuring property. If a significant loss happens and there is not enough insurance, they can potentially become liable for errors and omissions claims by owners damaged as a result of their malfeasance. Continue Reading Property Managers and Association Boards Need to Insure To Value
Associations are sometimes not listed in the declaration pages of insurance policies. I have seen property management firms, program administrators and the wrong Association listed in the declaration pages of insurance policies. While infrequent, it happens enough that those responsible for obtaining the insurance for an Association should make certain the insurers correctly list the Association as an insured at the point of sale. Continue Reading Association Must Be Named in Declarations Pages of a Policy To Avoid Disagreements Later
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 suit and no coverage for the property damages to which the association may be liable. Continue Reading Condominium Found To Have No Liability Coverage When Association Member Sues Association Which Contains Certain Exclusions
Unit owners of associations are clearly intended beneficiaries of the property insurance policy that the associations purchase. Indeed, in many situations, the association policy pays for the individual owner’s unit damage as well as the common elements. So, when a unit owner is damaged by a delaying, denying or underpaying property insurer, can the unit owner sue for the owner’s personal loss? Continue Reading Can a Unit Owner Directly Sue the Association Property Insurer?