The Policyholder's Advocate®
Many state statutes and condominium bylaws require the purchase of reasonably available property insurance which covers all direct physical risks of loss on an extended and replacement cost basis. One issue I have heard associations and their insurance agents ask: “Is flood insurance reasonably available” so that it has to be insured.
This question was…
Continuing my state-by-state review of mandatory condominium insurance requirements, this post will look at Indiana—The Hoosier State.
Condominium insurance requirements in Indiana are detailed in the Indiana Code. Section 32-25-8-9 discusses insurance and co-owners, stating in part:
Sec. 9. (a) The co-owners, through the association of co-owners, shall purchase:
1. A master
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After Hurricane Irma and Maria caused damage to many condominiums in Puerto Rico, it is the Board of Directors’ job to search for estimates and determine how the damage will be repair. Many will be limited by the amount of compensation approved by their insurers and will be forced to repair only the necessary parts of the common areas. It is important for any decision to be clear, in good faith and not exceed the authorization of the Board of Directors in the repair of damage caused by the hurricane.…
Continue Reading Puerto Rico: Condominium Repair Negotiations vs. Unjust Enrichment
Continuing my state-by-state review of mandatory condominium insurance requirements, this post will look at the state of Virginia, known as the “Mother of Presidents” because it is the birthplace of eight U.S. Presidents.
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Continue Reading Is Your Virginia Condominium in Compliance with the Law? Mandatory Virginia Insurance Requirements
An insurance agent’s claim of “cheaper” premiums could come with the risk of less coverage. A prudent condominium association must know what is required to be insured by law.
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Continue Reading Florida Condominium Insurance Coverage: What Insurance Coverage Must Be Obtained? Who is responsible If Condominium Insurance Is Not Purchased?
In Essex Insurance Co. v. DiMucci Development Corp. of Ponce Inlet Inc., U.S. District Judge Roy B. Dalton Jr. recently held that Evanston Insurance Company has no duty to defend a builder in a lawsuit alleging construction defects at one of its Florida condominium complexes based on an exclusion in the policy for damage to the developer’s own work.1…
Continue Reading Court Decision on “Your Work” Exclusion in a CGL Policy is a Head Scratcher
A federal district court in Washington recently decided that a claim against the owner of a condominium unit arising from the owner’s installation of a hardwood floor without the necessary permission (as spelled out in the Condo association’s bylaws), did not amount to an “occurrence” under the owner’s insurance policy.1…
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.…
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.…
