Posted: Wed Nov 19, 2008 10:11 pm Post subject: Property STRUCTURE Insurance for 9-Unit PUD HOA
Hello,
I'm new here and looking forward to hearing from you all on my question. It seems there are a lot of knowledgeable individuals here and I'm sure this will be a great help!
I've recently been elected to the board of the Home Owners Association (HOA) in which I live. We're located in the Los Angeles area, and there are 9 Single-Family Detached Homes in the development. Legally, it is considered a 'Planned Urban Development' (PUD). Insurance-wise, I'm told it is covered the same as a Condominium complex would be.
One of my duties as a board member is to review or current insurance coverage and shop around for for the best insurance offer for the HOA. The HOA is required to carry a blanket property policy to cover the Full Replacement Cost of the 'STRUCTURE' of the units (but not the 'CONTENTS). The policy also needs to cover Business Liability to cover the HOA Board Members.
I have been having great difficulty getting a clear and concise answer to (what I consider) a fairly simple question:
What EXACTLY is covered by this 'STRUCTURE' insurance?
Can someone clarify this? I seem to get different answers from different agents. Or, I get the response that something is 'generally' covered but there may be some (unspecified) exclusions. This is not very comforting.
Is there some 'master' document somewhere that would itemize the items covered by Structure insurance? One agent sent me a copy of the 'endorsements' that would go along with the policy, but these aren't really clear either.
Here is what I believe to be true:
STRUCTURE Insurance would cover:
Structural building elements, including foundation, all wiring, piping, and HVAC systems;
Roof (and any water damage caused by a leaky roof)
Perimeter walls, including windows
Interior Partition Walls
Interior Drywall, plaster, and primer
Each unit's owner is then responsible for:
Regular plumbing fixtures and cabinets for kitchen and bath;
Floor, wall, and ceiling coverings;
Additions and alterations made to the unit;
Decorating: paint, paneling, wallpaper, etc.
Personal property (furniture, clothing, etc.);
Personal property of special value (artwork, jewelry, cameras, etc.);
Flood and earthquake damage to property;
Association and individual insurance deductibles.
Broad water damage coverage for problems such as sewer and drain back-ups?
Well, when the actual nature of the coverage might depend upon the particular policy, the structure insurance of the condominium will cover the structure and the common place/ground available in the condo property, and, therefore, leaves the condo owners with the responsibility to insure their property as well as the portion of the structure, which is otherwise not covered under the structure insurance of the condo.
The condo owner will therefore be responsible for insuring drywall, flooring wall papers & paints, kitchen cabinets, carpet and tiles, lighting fixtures and any permanent changes made to the condo unit.
The condo owners are also responsible for carrying sufficient liability policy that would cover him/her if any damage happens to the common property due to his/her negligence.
Good morning Jesse and welcome to the community! I haven't worked condo policy claims for several (10 or so) years...but when I did the individual owners policys covered everything once you got inside their door...that would be ceiling, interior walls etc...and the associations policys covered the 'exterior, until you go to the sheetrock...they also were respnsible for liability outside the home...now that being said alot can change in 10 years and also states differ....have you checked your states dept of ins web site? many times they will lay out what HAS to be in each type of policy etc...also post what state you are in, there may be a regular poster who knows more about that state... _________________ **************************************
Life gaurantees a chance NOT a fair shake
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FIND a way EVERY day to lighten the load of another
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Yes, I think so...however it 'might' depend on what causes the damage...if the roof is neglected and thus leaks could be on the association...all condo policys (meaning unit owner policys) the interior walls are covered for same type of perils that an HO policy would cover. _________________ **************************************
Life gaurantees a chance NOT a fair shake
**************************************
FIND a way EVERY day to lighten the load of another
**************************************
Thanks for the replies everyone! I knew I came to the right place!
It is some comfort to see that I'm not the only one that isn't perfectly clear on what is covered by the HOA's property insurance.
For reference, I'm in southern California (Los Angeles area). - Lori, the " 'exterior, until you go to the sheetrock." Makes a lot of sense and is easy to understand. I'll pose that question to my insurance rep to see if he agrees with that statement (and can back it up with some documentation). I'll check with my state's department of insurance web site again. I've been there before and don't recall there being any great level of detail on this topic.
The coverage of 'interior walls' has been a question of mine also (as others have mentioned here). I can understand that if it is something I do (kick a hole in the drywall, or soak the drywall because the toilet backs up), then it would be my unit owner's insurance that would cover it. However, what if it is the cause of damage is a result of a failure of existing plumbing, or an electrical fire on an INTERIOR wall? Since those items are on an inside wall, which insurance should cover it?
And, how can I tell if this stuff is covered by looking at my policy? Should it state what is covered down to this level somewhere?
It is some comfort to see that I'm not the only one that isn't perfectly clear on what is covered by the HOA's property insurance.
Quite rightly said, we all are in a learning process here. I bet most of us dont even bother to read the policy document until we suffer some loss. Insurers and therefore the policies that they write are different in terms of covered perils and benefits. Hence, its important to understand what is covered under a particular policy and whether or not its serving my purpose.
Ive found for you another discussion on condo insurance, you might check it out for some additional information Hope it will help you.
And, how can I tell if this stuff is covered by looking at my policy? Should it state what is covered down to this level somewhere?
Yes, Jesse it will becarefull when reading any P&C policy, and read the whole section...what is 'given' in one are may be 'taken away' in another... just be sure you read the entire policy...also another source of probably the best information, ask your agent if he or she will put you in touch with the local claims manager...that is the person to talk to about what is covered, an agent (most agents) have a general knowledge of the product but not about claims, and policy interputation, which is very important...so if you can nail down the exact questions that you cannot find, ask for the CLAIMS managers number and when you get him or her ask if they can give you ten or fifteen minutes, or if you should call back (some times it's very hectic).... _________________ **************************************
Life gaurantees a chance NOT a fair shake
**************************************
FIND a way EVERY day to lighten the load of another
**************************************
just be sure you read the entire policy...also another source of probably the best information, ask your agent if he or she will put you in touch with the local claims manager...that is the person to talk to about what is covered, an agent (most agents) have a general knowledge of the product but not about claims, and policy interputation, which is very important...so if you can nail down the exact questions that you cannot find, ask for the CLAIMS managers number and when you get him or her ask if they can give you ten or fifteen minutes, or if you should call back (some times it's very hectic)....
