Insurance news and information

It’s tough being the Grinch.

A Florida-based condo association upset its residents recently by barring a Jewish-specific religious display on condo property. The condo association members were clear – no temporary alterations to condo’s common property, including a Sukkah, a hut used by the Jewish faith to celebrate Sukkot, an eight-day celebration in which the faithful eat their meals in a temporary hut. The condo association attorney stated that to let one resident put up a religious display on common property would mean the association would have to allow all residents the same permission. Read more…

Apartment complex owners who own several apartment complexes under one business model usually get an instant education on the nuances in apartment insurance policies. That’s because for every unique apartment complex, there is an equally unique coverage requirement in place. Apartment complexes are insured with the size of the business in mind, which can greatly influence the types of coverage needed and the limits necessary to provide adequate coverage. Read more…

Suppose your condo association has no employees to speak of. Suppose all work is performed by contractors carrying their own liability insurance. Suppose all condo association members are volunteer. So why would you need workers compensation insurance?

Some states take a very broad view of the definition of “employer-employee” relationship under workers compensation coverage and claims. If your association has any volunteers on staff, you could be setting yourself up, in appearance, for the law to define your relationship as employer-employee. Your volunteer is instructed by your board to complete work that causes injury to the volunteer. Your general liability policy will more than likely not cover such activity because under the general liability description on your condo association insurance policy, those completing work for your association are generally not included or may be specifically excluded. Read more…

No one likes to admit lack of knowledge. But condo and apartment association boards are generally made up of volunteers – good Samaritans who want to help out the community. And that’s the problem – a good portion of condo association board members have no head for business. And this could put your association at greater risk of loss.

As a nonprofit entity, your condo, homeowner, community or apartment association must meet relevant state laws. What’s more, association board members who aren’t often familiar with the legalese of association practice may not understand the bylaws, covenants, or other legal documents that the association has adopted. Worse, if your board has no standing experience with writing, amending, or interpreting your bylaws, any move by the board could open your association up to legal entanglements.

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The news out of Miami Beach is bleak – in July, a prestigious condo association, facing a high number of unit owners owing back fees, a shaky recreational lease, and $1 million plus in claims from unsecured creditors, sought Chapter 11 protection. What seems like an isolated case of bad management combined with bad timing is causing numerous shock waves in the condo association industry. For entirely too many other condo associations, this perfect storm is presenting itself and there seems to be little condo associations can do to change the forecast.

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