Property
In the event of a property claim for a unit owner, what is the first document to read and review?
The governing documents, CC&R's, or Bylaws. (Insurance Section)
This coverage provides protection for the HOA due to a fraudulent act involving the loss of money.
Employee Dishonesty/Fidelity/Crime Coverage
A water loss occurs in a 3rd floor unit and damages the units below. How many claims are filed on the master policy?
One, if over the master policy deductible.
This "Act" makes sure associations provide proper drain covers for pools.
Virginia Graeme Baker Act
This endorsement on the policy makes the management company an insured.
Additional insured endorsement.
On a "shell only/walls out" policy, who is responsible for the inside of the individual units?
The unit owners
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
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 the most important policy an association should have if they have a pool or other amenities?
Umbrella liability
This policy protects the management company if an employee/manager were to be stealing money from an association.
Crime/Fidelity/Employee Dishonesty
What does the term AOP stand for when referencing the deductible?
All Other Perils
In having the proper D&O policy in place with the correct specialty carrier, who is included as an insured?
All board members and the property management company.
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, CAU, Nationwide, 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
On a standard commercial property policy, which of the following are excluded from coverage?
Piers
Wharves
Docks
All of the above!
If an association is FHA approved, what items are used from the budget in order to calculate the proper limit needed for an employee dishonesty policy?
3 months of maintenance fees plus all reserves.
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
What is the theory of having a larger AOP deductible on a master association policy?
Saves the association money on the front end with lower premiums. Places more accountability on unit owners for small and petty claims. 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.
Someone is injured in a unit owner's space. Who is liable? The unit owner or the association?
Unit Owner
Failure to place the correct insurance policy for the association falls on which party?
- The board of directors
- The management company
- The insurance agent
- All of the above
All of the above