Question: Are the units’ interiors covered? Answer: That depends. Most CC&Rs state who is responsible for the interiors and to what extent. It could be the individual Owners, the Association or both. It is important to review the Association’s CC&Rs. Contact us if you would like us to review them with you or if you would like a quote for your Association.
Question: How can our Association keep the price down, without compromising the Association’s coverage? Answer: Since we represent many insurance companies we are able to tailor a package to meet the needs and budget of your particular Association. We will inspect your property to be sure all discounts are applied. For example, credit for having an interior sprinkler system. There are several areas where premiums may be reduced with adjustments to the coverages and/or deductibles. We will review the Association’s governing documents, current policies, Reserve Study, Financial Statements, county records, and the Davis Sterling Act to help the board determine the appropriate coverages for your association.
Question: How much coverage do we really need? Answer: The insurance section of your CC&Rs along with the Davis Sterling Act set out basic coverage requirements. As part of our service we will personally inspect your property; review county records for accurate building sizes; the Association’s Reserve Study; and the financial statements to help the Board determine the appropriate coverage amounts.
Question: We are a Planned Unit Development, why do we need Property Insurance? Answer: A PUD may have the option of either insuring the residential units or allowing the individual owners to insure their own homes.Property insurance is not just for buildings. It also includes pools; tennis courts; trees, plants and shrubs; fences and walls; mailboxes; lighting; walkways; and paved surfaces such as streets and parking lots. We will inspect your Association and review the governing documents and reserve study to ensure all property is insured and help the Board determine adequate limits of coverage.
Question: Does my Homeowners Association really need Director’s and Officer’s Liability Insurance? Answer: D&O insurance is necessary in the case of Wrongful Acts, Breach of Duty, Neglect, Errors, Misleading Statements or Omission of any Board Member. These risks are not included in General Liability.
Question: Why does our Association need a Fidelity Bond? Answer: A Fidelity Bond, also called, Crime Coverage or Employee Dishonesty, protects the Association from Embezzlement, Theft of Money or Securities, Identity Fraud and Forgery by a Board Member or the Property Manager, if included.
Question: Why is an Umbrella or Excess Liability Insurance needed? Answer: An Excess Liability, or Commercial Umbrella policy may be necessary for catastrophic claims which exceed your base liability limits. Homeowners Associations are natural targets for high-dollar lawsuits filed by someone who is injured on property.