Virtual University | Condo-Issues

Additional Living Expense: Be Careful the Advice You Take

Additional Living Expense is specifically limited in the HO policy; however, at least one group that undertakes to provide “expert” opinions believes that there is no limit. Be careful the advice you take and read the policy yourself rather than depending on others. The E&O claim you avoid could be your own.

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Condo Associations and the NFIP

What happens with there is not enough coverage from the NFIP to cover the condo association. Do the unit owners purchase their own coverage or does the association have to purchase excess coverage?

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Condominiums Revisited

This piece answers three condo questions for unit owners. First, when the unit owner is responsible for insuring unit improvements and betterments, is this limited to improvements made by them or any previous owner? Second, should the unit owner’s mortgagee be added as an additional insured or mortgagee on the association’s master policy? And lastly, how should agents respond when the mortgagee is requiring Coverage A limits equal to the loan amount?

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Cracking the Condominium Conundrum

How can a policy generating about $75 in revenue cost you $5,000, $10,000, or more? Believing that writing an HO-6 is quick and easy is the beginning of an E&O storm that can cost you thousands (your E&O deductible).

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Insuring “Other Structures” on HO-6 Condo Policies

An HO-6 condo form includes only Coverage A and C for direct damage to property…that is, no Coverage B. What if the insured owns a structure not attached to the unit? Can it be insured and, if so, how?

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Insuring a ‘Box of Air’

Although the unit owner doesn’t own the entire structure, they may have responsibility for insuring some “real property” elements that are part of the building. And the only way to know what property the unit owner is required to insure is to read the condo association’s ruling documents such as the covenants, conditions and restrictions (CCRs).

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Loss Assessment Coverage

Individuals who live in or own homes in a home association face increased financial risks from assessments. Personal lines policies cover some of the assessments, but increased limits of loss assessment coverage should be purchased where available, and individuals who live in a HOA should have their policy endorsed to include personal injury liability claims.

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Condos, Binders and "Walls In" Coverage

The VU 'Ask an Expert' service has been made aware of a number of requests from the lenders of condo unit owners who want to be named as mortgagees on the association master policy. In addition, they are demanding that the binder specifically state 'Walls In' coverage is provided.

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Homeowners' Associations

It’s very unlikely that many purchasers of a townhome or a stand-alone home in an association ever consider the insurance implications of such purchases. Only when it’s time for the agent to provide coverage, does the issue surface. This article examines some of the insurance aspects of owning homes in a homeowners’ association, including situations where residential property is often improperly insured to the extent that a serious E&O exposure is presented.

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Hurricanes and Homeowners Association Loss Assessments

Many homeowners are just now being assessed by their homeowner or condo associations for losses that occurred in 2005 due to master policy exclusions, deductibles, or inadequate limits. Some insurers claim that the policy that responds is the one in force at the time of the hurricane damage. Under the ISO HO-3, that's wrong and here's why...

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Interpreting Condo Association Documents for Insureds

Whether agents should be reviewing any kind of contracts for insureds is an issue without an absolute solution. It depends on many factors, from the type of contract to the agent's experience and expertise to, well, lots of other considerations. Too often, though, someone may take on the review of a legal document they're simply not qualified to interpret.

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Loss Assessment Coverage

One of the most misunderstood coverages — and one that is of growing importance — is the loss assessment coverage in a homeowners policy. In this article, personal lines guru David Thompson presents the definitive analysis of what is and isn't covered in HO policies. You'll definitely want to share this with all personal lines producers and CSRs.

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More HO Loss Assessment Misunderstandings

Can a condo association assessment for a deductible be paid by the HO policy without the entire association being assessed? An agent reports that one company will not pay unless the entire association has been assessed even if it is written into the by-laws that a single unit owner may be responsible for the association deductible.

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Renting Condos (and Homes) to Others

Most likely, many of you have insureds who own a vacation home or condo that is rented out much of the time. Most of you have insureds who might buy or build a new home and rent their former home to someone until they can sell it. They often insure these properties under HO-6's and HO-3's. Wouldn't it be awful if they had no coverage....

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