Property
In the event of a property loss, what's one thing you can do before filing the claim with your insurance agent?
Get an estimate.
This coverage protects the HOA if an employee/manager were to be stealing money from an association.
Employee dishonesty/ crime/ fidelity
It's okay for unit owners to have open flames within 10 feet of a combustible structure. True or false?
False
Who is responsible for damages if a unit owner or guest falls on the property due to a pothole or broken up concrete? Unit owner or association?
More than likely the association.
Which carriers are preferred? Surplus lines carriers or standard market carriers?
Standard market carriers
On a "shell only/walls out" policy, who is responsible for the inside of the individual units?
The unit owners
In having the proper D&O policy in place with the correct specialty carrier, who is included as an insured?
1. Board members
2. Volunteer committee members
3. Property manager.
A healthy tree (owned by the HOA) is struck by lightning. A branch falls and damages a parked unit owner's car. Who is responsible for the claim?
Unit owner under their personal car insurance
What is an important policy for an association to add if they have a pool or other amenities?
Umbrella liability
What does a workers compensation policy cover when an HOA has no direct employees?
Uninsured vendors/ volunteers doing work for the community.
What is the theory of having a larger AOP deductible on a master association policy?
1. Saves the association money on the front end with lower premiums.
2. Places more accountability on unit owners for small and petty claims.
3. Keeps the loss ratio lower to prevent future premiums from going up.
This endorsement on a D&O policy restricts the coverage of a claim to a specific start date/time frame.
Water loss happens in a unit directly above due to a fridge malfunction and caused minor water damage in the unit below.
Who files a claim on their personal lines carrier if the loss doesn't exceed the HOA's deductible?
The unit where the claim originated. Upstairs unit.
What special property coverage add-on is absolutely necessary when an HOA owns a pool?
Equipment breakdown
Failure to place the correct insurance policy for the association falls on which of these parties?
- The board of directors
- The management company
- The insurance agent
All of the above
What does the term AOP stand for when referencing the deductible?
All Other Perils
What is the number one cause of claims for D&O policies?
Discrimination
All condo associations should have ordinance or law coverage. True or false?
False
What two pool features make it nearly impossible for a standard market insurance carrier (Auto Owners, Travelers, Etc.) to insure?
A diving board and slide.
A townhome association is currently in the development stage. When is the proper time to notify the insurance agent to add each completed building?
- End of each month
- Immediate upon completion
- At policy renewal
Immediately upon completion
In the event of a property claim for a unit owner, what is the first document a claim adjustor will read and review?
The governing documents, CC&R's, or Bylaws. (Insurance Section)
This type of D&O policy covers claims that took place regardless of how far in the past they occurred.
Claims-made policy with full prior acts
If a loss affecting the common property exceeds the master deductible, a claim should always be filed. True or false?
False. In order to protect the financial health of the association, losses should be evaluated on a case-by-case basis.
This "Act" makes sure associations provide proper drain covers for pools.
Virginia Graeme Baker Act
What is the difference between a flat percentage deductible and a per building percentage deductible?
A flat percentage deductible takes the entire association’s TIV (total insured value) into account when calculating the deductible. A per building percentage deductible considers each individual damaged building.