Several weeks ago I blogged about the way insurers sometimes use “other insurance” provisions to argue that they are not responsible for paying for a loss because “other insurance” is required to do so. In today’s blog I will address a similar and related topic that comes up in scenarios involving condominium and homeowners’ associations.

Condominium Owner Insurance (COI) policies are designed to insure everything inside the condo, while recognizing the Home Owners’ Association (HOAs) will insure the common areas. The HOA coverage is often referred to as "walls out" coverage, because everything within the walls of the owner’s individual unit is usually that person’s individual responsibility (But in some condo policies, the interior, "bare" walls are covered by the HOA master policy as well). Generally, the HOA’s governing documents (CC&Rs) should typically state exactly which areas the HOA policy insures.


Continue Reading Which Policy Covers My Condominium Property Damage Claim?

Damages caused by faulty workmanship has always been a hot topic in insurance law. In the Fall of 2015, the New Jersey Appellate Court stated that insurers are liable for damages arising out of a subcontractor’s defective work.1 Given this is such highly debated topic, it is not surprising that the Supreme Court of New Jersey has agreed to weigh in on whether consequential damages stemming from a subcontractor’s faulty work on a condominium complex constitute an occurrence under a general contractor’s insurance policy.


Continue Reading Court Agrees to Weigh in Whether Insurers are Liable for Subcontractor’s Defective Work

Many of you are familiar with the following scenario—an insurance claim is denied because there is no coverage. Subsequently, the insured pursues a claim against their insurance broker for failing to obtain the coverage requested and pursues damages against the insurance broker for the insurance coverage that would have been available but for the negligent conduct of the insurance broker.

However, what many of you may not be familiar with is a similar claim that can be made against the Home Owner Association (HOA) where the HOA is required to obtain specified types of insurance coverage for the benefits of its members (according to the terms and conditions of the of CC&Rs) but fails to do so.


Continue Reading Homeowner Association Managers, Agents and Officers Beware – Check Insurance Requirements to Avoid Lawsuits From Individual Members!!

As I have noted in the past, the appraisal process has become a hot topic in the property insurance world in the past few years. Colorado has become ground zero for many of these disputes. While many states have statutory or appellate precedent to define the scope and workings of the appraisal process, Colorado is one of the few that does not.


Continue Reading Colorado Continues to Wrestle with the Appraisal Process

The fun and games that insurers put us and their policyholders through to not pay claims never ceases and gets more creative all the time. Attorney Ashley Harris told me that one of our condominium clients from Superstorm Sandy had a request from its insurer that the wind damaged roofs needed an inspection at 3:30 a.m. We agreed with the request but what happened was unusual—even more unusual than a 3:30 a.m. inspection.


Continue Reading Middle of the Night Insurer Roof Inspection Results in Police Investigation and Insurance Company Attorney Car Towed Away

As with most important rulings, a recent appellate court decision in favor of a Florida condominium association has been making the rounds through the national insurance news. In Slow, Late, and Delayed Replacement or Repair – – A Case That Helps Policyholders, Chip Merlin wrote about a recent Florida appellate decision in Axis Surplus Insurance Company v. Caribbean Beach Club Association.1 While the trial court rulings in favor of the association were upheld on multiple grounds, the appellate court wrote to highlight why the insurance carrier waived certain time limitation provisions in the policy.


Continue Reading Recent Case Highlights Need for Code Coverage

Roofing contractors and adjusters have been at the center of an ongoing debate in Texas. As I noted in Texas Moves to Limit the Role of Roofing Contractors, Texas enacted H.B. 1183, prohibiting insurance adjusters from doubling up as roofing contractors and preventing roofing contractors from acting as adjusters, or advertising to act as an adjuster, on any property they perform work.


Continue Reading Texas Department of Insurance Issues Bulletin for Roofers and Adjusters

Since the Florida Supreme Court’s decision in State Farm v. Curran, practitioners and courts alike have been trying to sort out exactly how far the opinion goes. While many argue that Curran only applies to independent medical examinations, others point out that the Fifth District Court of Appeal specifically certified conflict with an earlier decision dealing with the application of the Examination Under Oath provision.


Continue Reading Florida 4th DCA Reaffirms Position On EUO Requirement