Shower pan losses are common occurrences. For a Florida condominium owner who has a shower pan loss within their condominium, the homeowner’s policy usually covers the damages caused by the water but does not pay to repair the damaged or broken shower pan.1 However, what happens when the unit upstairs experiences a shower pan link that impacts your unit? Continue Reading Is a Shower Pan Leak Covered By Your Condominium Insurance?
A condominium can be defined as a single real estate unit in a multi-unit development in which a person has both separate ownership of a unit and a common interest, along with the development’s other owners, in the common areas.1 Insuring your condominium is often not so easy, especially since it usually requires that you are covered by both your condominium’s master policy and your own separate individual insurance policy. It’s important to closely review the condominium association’s declaration document, which details what real property the unit-owner is responsible for insuring separately. Continue Reading Understanding How Your Condominium Insurance Works—The Individual vs. Master Policy Coverages
Obtaining the proper insurance coverage for the association is one of the key duties of property managers and boards of directors. I once was giving a presentation at a national convention at the Condominium Associates Institute (CAI) with a co-presenter, Suzanne Harris. We were discussing the importance of obtaining the right insurance and selecting the right agent. Continue Reading The Big Tip For Making Certain Association Insurance Agent Is Getting The Right Coverage
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?