Your apartment association board took bids, shopped around, and worked with a broker to come up with the most suitable association insurance package imaginable. And that’s great. But for how long is that going to hold true?
Even the most comprehensive apartment or condo association insurance package can become less so, as the association’s needs change. Today your association may have a set agreement in place, but amendments, additions, and changes to that agreement, as well as changes in the state of the property or to the grounds themselves could leave your apartment or condo association uncovered as a result of these changes. Read more…
Flickr photo credit: turbojoe_(away)
If you’re watching your condo association insurance costs these days, you’ve seen the trend. Insurers are passing on higher and higher deductibles to associations – sometimes to the tune of $10,000. And associations are having difficulty adjusting to the higher costs. In fact, associations facing mounting deductibles are often looking for places to transfer that cost. That means some unit owners are now coughing up extra for the additional deductible amounts in the form of higher association fees.
It stands to reason that associations would choose to pass the additional cost on to the owners. Most associations now include insurance costs in association fees. Because much of the liability stems from owner activity, associations feel justified in including the deductible charges in association fees. But some associations are considering passing that cost on only to those owners who receive the insurance benefits paid for by the premiums. While that’s a more just way of handling the situation, it’s unlikely that a smaller group of owners would be able to take on the deductible. Also, the association may have to go through the expensive legal process of assigning negligence to the owners, which may not be successful. Read more…
Flickr photo credit: Radio Rover
[technorati code wdzjeyt7n4] Are your work-at-home unit owners creating an insurance gap for your association? What seems like an innocuous issue could be a major deal breaker for your insurer. That’s because most policies state that units are for residential purposes only. Some go so far as to prohibit business operations of any kind in the units. Tell that to the freelance writer or the Internet auctioneer living on association property.
As home-based businesses grow in number, there will be more people working from home. As a result, insurance policies will be challenged should any claims arise as a direct result of the home-based business. You as condo association members must determine the extent to which you will address a telecommuting unit owner. In most cases, insurers expect condo associations to exercise good business judgment.
For instance, not all home-based businesses pose a risk to the condo association insurance coverage. Condo associations should ask the following: How big is the risk based on the unit owner’s business? Are clients visiting the property? Is there a nuisance factor, such as excess noise, traffic, deliveries, or late-night phone calls/faxes that may be heard in other units? Is the unit owner manufacturing items in the unit? Read more…
Flickr photo credit: Robert S. Donovan
The question arises every summer – should you allow your residents to grill on the property premises? If you’re wondering how a contained grill can cause problems, consider this: Over 500 fires occur annually thanks to gas grill usage. Charcoal is no safer – over 20 deaths and 300 injuries occur each year thanks to charcoal and the related carbon monoxide poisoning threat it poses.
In condos and apartment complexes the risk increases. Your residents may not consider that dripping grease, nearby flags or plants, or even an open window into their own unit can create fire and carbon monoxide dangers. If you’ve banned them from use on balconies or attached patios/porches, you’ve gone a long way to preventing a devastating fire or accident.
But what about using grills on the property? Most loss control experts say that a minimum of ten feet away from any building is recommended. Should you allow your residents to use grills in common areas, such as on common patio areas or around pools? Read more…
Flickr photo credit: beancounter
Ten Business Insurance Renewal Reminders – “Let Us Know”
To insure a Home Owner or Condo Association is to worry – if you’re worried about whether or not something may need to be covered, let us know.
1. Read your policies, paying attention to the limits, conditions, and exclusions. If you have questions or concerns, let us know.
2. Liability limits can be increased – if you’re concerned, let us know.
3. Commercial General Liability (even with an Umbrella) doesn’t cover all types of claims. If you’d like to discuss Employment Practices Liability, Directors & Officers Liability, Fiduciary (ERISA) Liability, Professional Liability, International Liability, Cyber-Liability or other types of protection, let us know.
4. Selecting adequate Property insurance limits is your responsibility – if you underinsure, there can be coinsurance penalties and/or you’ll come up short after a serious loss. Replacement Cost requirements have nothing to do with Market Value or Book Value – what would your building(s) and contents cost to replace, brand new, if destroyed? Read more…
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