Property
Unit owners.
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 in the common area due to broken up concrete?
More than likely the association.
Standard market carriers are typically preferable to surplus lines market carriers. True or false?
True.
In the event of a property loss, what's one thing you can do (aside from mitigating damage) before filing the claim with your insurance agent?
Get an estimate.
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/ community volunteers
In the event of a property claim for a unit owner, what's the first document a claim adjustor will read and review?
Association's governing documents.
This endorsement on a D&O policy restricts the coverage of a claim to a specific start date/time frame.
Retroactive Date
A fridge malfunction in Unit 301 causes minor water damage to Unit 201 (the unit directly below it).
Who files a claim with their HO-6 carrier?
Unit 301 - where the claim originated.
Workers' Compensation
Failure to place the correct insurance policy for the association can fall on which of these parties?
- The board of directors
- The management company
- The insurance agent
All of the above
What are the benefits of increasing a townhome/ condo community's property deductible?
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.
What is the number one cause of claims for D&O policies?
Discrimination
What is Ordinance & Law coverage?
Property Coverage add-on that covers increased costs associated with partially damaged buildings and bringing buildings up to current code.
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
What is the difference between replacement cost and blanket replacement cost?
Replacement cost: each building/ structure is assigned a limit.
Blanket replacement cost: the whole community is assigned an overarching limit.
This type of D&O policy covers claims 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
A condo association has a 1% wind/ hail deductible. A $2.5M building suffers $120K in wind damage. What would the payout from the carrier be?
Deductible = $25,000 ($2,500,000 x 0.01)
$120,000 - $25,000 = $95,000