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?
Fees may not be recoverable under a condominium association policy to an insured condominium association or its property management company after a loss. The Board should carefully consider fee percentages agreed upon in a management agreement to assist the association through a property insurance claim. Continue Reading Property Management Fees Incurred Following a Loss — Are They Recoverable?
You purchased a condo, closed on the mortgage loan, and are now ready to move in to your new home. But what happens if a pipe bursts and floods your unit or an electrical short causes fire damage to your unit? Should you call the insurance company or your Condo Association? Are you covered by your Condo Association’s master policy of insurance? What kind of insurance is required under your mortgage? Are you required to have an HO-6 insurance policy? These important questions need to be answered before you move into your new home. In discussion of these questions, I will utilize Fannie Mae requirements as a guidepost as Fannie Mae is the largest mortgagor in the United States and its rules and guidelines are often used by other mortgagors. Continue Reading Your Condo Association Has An Insurance Policy, But Are You Covered?
Condominium Association leadership and management is complex and never ending. I was thinking about this while reading an excellent article, Preparing Your Association For Winter. Continue Reading Winterization Includes Preparation For Spring & Summer
Continuing my state-by-state review of mandatory condominium insurance requirements, this post will look at New Mexico—The Land of Enchantment. Continue Reading Is Your New Mexico Condominium In Compliance With The Law? Mandatory New Mexico Insurance Requirements
Many states require condominium associations to maintain property insurance for the common areas of the building but leave it up to the unit owners whether they want to insure their individual units or personal belongings. Oklahoma, however, is different and does not require the association to obtain insurance for the property. Continue Reading Is Your Oklahoma Condominium In Compliance With The Law? Mandatory Oklahoma Insurance Requirements