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 would be due if a loss occurs. This mechanism is particularly relevant for policyholders when the deductible on a claim is set at a high amount.Continue Reading Is Deductible Buy-Down Insurance A Wise Choice For Condominiums? A Basic Guide For Association Boards and Property Managers
Most property insurance companies take too long to investigate, request far too many documents, and delay analyzing the documents after they obtain them so that months pass before a decision is made on the property loss. This is not proper and not in the spirit of good faith claims service all condominiums are promised and deserve to receive. I sometimes wish the claims managers of insurance companies were Association Board members who received incessant requests from other members asking—“Why is it taking so long for the insurance company to make a decision and pay?”
So, what can an Association do? Continue Reading Condominium Associations Need to Cooperate and Provide Information to Move Along a Property Insurance Claim
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
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
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