Managing underwriter Advanced E&S Group has launched a business income policy for community associations that includes maintenance interruption insurance designed to help condominium and homeowner associations reduce their exposure to loss of assessment income.
As community associations prepare their budgets for 2014, they could face a loss of cash flow and bad debt resulting from damage to the premises or another downturn in the economy, which can now be insured. Unlike traditional business income Advanced E&S’s policy covers loss of assessment income. The policy responds to both traditionally insured and normally non-insured events with up to $1 million of coverage. Loss payments will continue for up to four years following a covered event.
There is a 30 day deductible for loss of maintenance income as a result of damage to the property covered under any ISO special peril form. In some states, an additional 150 day deductible applies to losses as a result of wind, hail, earthquake or flood. In addition, any loss of maintenance payments for any reason is covered with a 180 day deductible. This extension of coverage includes delinquent unit owners who are already behind in maintenance payments by at least six months.
Advanced E&S Group is managing underwriter of specialty property insurance including programs for community associations.