As an attorney who has represented hundreds of condominium associations following losses, I understand the importance of having the right insurance policies in place to protect your association’s assets and financial well-being. Fidelity, Employee Dishonesty, and Crime Insurance are crucial components of a comprehensive insurance plan for condominium associations. Yet, it is a very complex type of insurance. Condominium boards and property managers often ask me what they should be aware of to purchase the best type of Fidelity, Employee Dishonesty, and Crime Insurance available and how to work with their agent to do so. I will share tips and personal insights to help your association navigate these specialized coverages and suggest how to work effectively with your insurance professionals to safeguard your community’s interests.

Continue Reading Tips For Association Leaders Purchasing Fidelity, Employee Dishonesty, and Crime Insurance for Condominium Associations

When a condominium association finds itself defending a claim asserted by a unit owner, it is imperative to understand what is the association’s liability insurance carrier’s duty to defend the claim.

Continue Reading Understanding a Liability Insurance Carrier’s Duty to Defend

Recent articles in the Miami Herald and Insurance Journal reported on massive fraud from a Condominium Association by its officers, board members, and leaders. The Miami-Dade State Attorney’s Office said it had charged five current and former association board members with racketeering violations, grand theft, money laundering, and fabricating evidence. In addition, two vendors were criminally charged for receiving payments from the fraudulent invoices, which totaled over $1.2 million. Florida law requires Condominium Associations to carry Crime and Fidelity Insurance or bonds to protect against this type of activity. Continue Reading Florida Condominium Laws Require Insurance or Fidelity Bond to Reimburse Stolen Association Funds

If you own a condo in California, it’s a safe bet you are not covered against damage caused by an earthquake (“EQ”). EQ damage is typically an excluded peril under HO-6 and similar condo policies. EQ coverage is required to be offered, but only about 15% of condo owners choose to pay an additional premium to cover this peril despite reports1 that within the next 30 years, there is (1) over a 99% chance that one or more M6.7 or greater EQs will strike somewhere in California; (2) a 75% chance one or more M7.0 or greater EQs will strike Southern California; and (3) a 76% chance one or more M7.0 or greater EQs will strike Northern California. Continue Reading Is Your California Condo Covered Against Earthquake Damage?

High rise condominiums next to the ocean are subject to storm surge and erosion. While rare, I have represented a number of condominiums that collapsed during a hurricane event. Continue Reading Why You Might Need Flood Insurance When You Live in a High Rise Condominium Next to the Ocean

Following a hurricane, hailstorm, or strong thunderstorm, property managers and association boards should not make the mistake of sending the maintenance employee as the only person to inspect for possible damage to the roof. Roof damages are difficult for untrained people to detect. Insurance companies send adjusters to specialized schools taught by roof damage specialists to learn how to determine if strong winds or hail damaged a roof. By not sending a trained roof damage specialist, millions of dollars can be lost as a result of roofs wearing out far sooner than expected or leaks developing from the previously unfound damage, causing damage to the roof underlayment and whatever is under the roof. Continue Reading Property Managers and Association Boards Need to Hire Experts to Inspect for Roof Damage

What should the Association do after the storm about the damage? This initial common question is important and invariably leads me to tell Association Boards to check the Association Declarations and By-Laws. Most have guidance about steps that must be followed. Continue Reading After The Storm—Does Your Condo Have to Hire an Engineer or Architect?

Brandon Lewis provided a speech at the Georgia Association of Public Insurance Adjusters Spring meeting discussing the adjustment of condominium losses in Georgia. He noted the following statute in the Georgia Code regarding condominium insurance: Continue Reading Georgia Condominium Laws Require Rebuilding to Original Installation

A recent Colorado case judgment1 where a condominium lost its hailstorm lawsuit and had to pay the insurance company attorneys fees, caught my attention. The judge ruled that the Association’s claims expert could not testify because the expert lacked credentials and a scientific basis for opinions. Continue Reading Associations Should Hire Licensed Experts to Help with Property Insurance Claims

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