Finding the Missing Pieces in the Condo Insurance Coverage Puzzle

By Patrick Wraight | August 28, 2018

  • August 28, 2018 at 1:26 pm
    Jack says:
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    I created a check list I send my potential HO6 clients and request the HOA complete the form to indicate what my client is required to insure. It gives my clients something to hang their hat on if a loss occurs and the HOA decides to try to pass the buck.

    • August 28, 2018 at 2:27 pm
      Rosenblatt says:
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      Great idea, Jack (presuming the HOA is willing to complete said form!) Just wondering – have you ever had to test the legality of that in the court system (or with the DoI, or in arbitration, et cetera) where someone from the HOA signed off on their “coverage” only to have the insured file a claim and get a written denial stating that item was not actually covered by the HOA? Obviously something is better than nothing, but has the discrepancy ever been tested post-denial?

      • August 28, 2018 at 4:05 pm
        Jack says:
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        It has not had to be tested in a court of law yet. If the HOA will not complete, the client will see numerous quotes for A&A. The client will have to pick the amount as I, nor an agent that works for me will. There are 2 types of master deeds, at least here in SC. One type puts most of the legal requirement to insure on the HO6 unit owner. I have no intention of reading a master deed to find out which type it is, given most HOA’s reserve the right to change them. I’d suggest the same to any other agent that doesn’t write HOA’s and condos on a daily basis, especially in a coastal are like I’m in here in the Charleston area.

        • August 28, 2018 at 5:00 pm
          Rosenblatt says:
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          Thanks for the reply, Jack!

  • August 28, 2018 at 1:50 pm
    Jayman says:
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    I tell our customers “if you turn over your unit, what ever falls out is your responsibility.” The rest is the association subject to bylaw language.

    • August 28, 2018 at 2:28 pm
      Rosenblatt says:
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      That’s similar to what we tell our auto customers about what’s covered under the auto vs. homeowner’s policy: if you turn your car upside down (and pretend it’s a convertible), anything that falls out has to be filed under your home policy — obvious exclusions apply depending on what endorsements are tied to the policies.

      • August 28, 2018 at 4:14 pm
        Jack says:
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        You guys need to think about what it would cost a remediation company to go in there for a clean up of fire,smoke,water.

  • August 28, 2018 at 4:54 pm
    Danielle says:
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    It all goes back to what is spelled out in the condo/ HOA docs. There is a line of demarcation plain and simple. I check with the management company to speak to the broker who writes the Master if we don’t. It’s either All Walls/ Studs In/ Improvements over Builders Grade / or just Contents. I doc who I’ve spoken to and advise the client to check annually if there are changes. I max Loss Assessment. We throw some Add and Alter to safe guard. Specially if its a high deductible Master Policy. No its not perfect but it is a careful way to address the various condo docs documentation. I’ve been fortunate that we haven’t had any claim issues because we check ~ even with CO-Ops.



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