When you buy insurance for a homeowners association or condominium association, there are a number of coverages that you should buy. The problem is that some insurance companies just don't do the job right. Here are some things to look for.
In a homeowners association, the individual homeowners own their homes, and they are responsible for insuring them. Therefore, the association might only need a limited amount of coverage, or no coverage at all. Coverage can be purchased for clubhouses, pools, playgrounds, fences, signs, and lighting.
In a condo association, The association is responsible for insuring common property (as defined in the association declarations), and the individual unit owners are responsible for insuring their units. Thus, in a typical "bare walls" association, the association is responsible for insuring the shell, and the unit owners is responsible for insuring everything inside the shell, such as interior walls, paint or wallpaper, floor covering, ceiling covering, appliances, plumbing fixtures, and cabinets. This means that the association generally needs to buy less coverage then the full replacement cost of the building, and the unit owner needs to make sure that their insurance program includes a lot more building coverage than most companies include automatically. For other associations, the bylaws and declaration may require "all in" coverage, which includes everything that came with the original building. Other associations may have a wide variety of variations on these themes.
Coastal Condominiums- We offer coverage for associations that are at least 500 feet from shore in VA. We do not have markets for anything close to the shore in other states, and no markets at all in FL.
We offer coverage for condo associations with aluminum wiring in the states of Delaware, Georgia, Kentucky, Maryland, Pennsylvania, Virginia, and the District of Columbia.
We offer coverage for new condominium developments - from builders risk to the conversion to condo and beyond.
General liability covers for bodily injury or property damage arising out of the associations premises or operations. Every association needs this.
D&O liability protects the members of the board if they are sued as a result of decisions that they make in their capacity as board members. Common causes of claims include selective enforcement of parking rules or building covenants, and failure to follow proper procedure with respect to meetings and budget expenditures.
In Virginia, the VA condominium act requires that any association that collects assessments from its members must have a fidelity bond covering theft by its employees, officers, and property managers. Other states may or may not have a similar law, but every association needs this coverage even if it is not required by law. The problem here is that most companies will sell you a standard employee dishonesty policy. This covers theft by employees, which are defined to be persons who work for the insured for a salary or wage. When we sell insurance for a condo or homeowners association, we provide endorsements that include the President, Vice-President, Secretary, Treasurer, and Property manager as employees, even if they do not receive a salary or wage.
Let's face it, you buy insurance because claims can happen. Unfortunately, many insurance companies are inclined to non-renew accounts that have claims problems. We can often help, depending upon the circumstances. If claims are the result of just plain bad luck, we may be able to help. If claims are the result of bad management or buildings in poor condition, we are less likely to be able to help. Call us at 1-800-527-6967 for a consultation!
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