Post-loss compliance is a significant element of the adjustment process. Policyholders can take the proper precautions and be prepared for potential losses, however, as illustrated in Denise Sze’s recent post on our Property Insurance Coverage Law blog, Courts Affirm that an Insured Must Comply with Post-Loss Duties, a policyholder’s failure to comply with a policy’s post-loss obligations may lead to a forfeiture of the claim.
Post-loss obligations are more complicated in claims presented by condominium and homeowners’ associations. The document and records requests can be overwhelming. Often, associations do not know the limits of their obligations: what type of documentation is it responsible for, and how long is it required to keep such information. Florida Statute §718.111(12) provides guidelines that associations must comply with.
Among other things, the statute requires associations to maintain a copy of the association’s bylaws, a copy of the articles of incorporation, books of the board minutes for seven years, and current policies of the association.
Following a loss, a carrier typically demands these documents for its investigation. If an association fails to produce these documents, a carrier may argue that its investigation of the claim has been prejudiced and it could jeopardize an otherwise legitimate claim. Complying with Florida Statute §718.111 should help associations expedite their claims and protect their claims and rights to indemnification.
We are just two weeks away from the beginning of the 2012 Hurricane season, now is the time for associations to check their records and verify compliance with Florida Statute §718.111.