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Old 07-10-2010, 11:38 AM
 
5 posts, read 12,676 times
Reputation: 11

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This is my first time posting and my questions may be quite confusing because I am confused. Also, am sorry for the long message

Our HOA (governed by Chapter 720) has several residential buildings on the property. Each building houses 4 single family townhouse units. We own the townhouse units fee simple. It is my understanding that the assn ‘insurable interest’ in the buildings is governed by the Covenants. Our Covenants require the Assn to carry ‘master policy’ on all buildings.

Citizens describes Commercial Residential Property:

A. The following classes shall be deemed Commercial Residential Property and may be written on behalf of Citizens

1. Condominium Associations
2. Apartment Buildings
3. Common Elements of Homeowners Associations
4. Residential buildings of a Homeowners Association are eligible for commercial residential coverage if the HOA Declaration demonstrates that it is the responsibility of the Association to obtain the property coverage for these buildings

Our buildings are insured under Commercial Residential Policy. The Declaration page shows that each building is insured at 100% Replacement value (3% deductible) and it describes each building as: ‘2 story (4) unit townhouse, wind resistive, flat roof and reinforced concrete roof.’

Q1: The Declaration page does NOT state each building has 16 glass sliding doors and eight balconies. Does it mean the glass and balconies may not be insured?

Q2: Does Citizens policy/rating make any distinctions between Condominium Associations (Chapter 718) and HOAs (Chapter 720)?

Q3: If yes, can the HOA insure the buildings including the interior (carpets, kitchen cabinets, etc) providing our ‘master policy’ requires it?

Q4: If no, and only the skeleton of each building can be covered, is my only option to purchase Condo H0-6 policy?

Q5: Is 'Policy statement' the same thing as 'declaration'?

Last edited by Karmela; 07-10-2010 at 12:05 PM..
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Old 07-12-2010, 06:18 AM
 
21,109 posts, read 30,189,612 times
Reputation: 19474
Q1: The Declaration page does NOT state each building has 16 glass sliding doors and eight balconies. Does it mean the glass and balconies may not be insured? No, it's the whole building being insured, it's no different than anything else that is insured. A for instance would be your car, windshields aren't excluded because they're not mentioned..they're an assumption.

Q2: Does Citizens policy/rating make any distinctions between Condominium Associations (Chapter 718) and HOAs (Chapter 720)? No

Q3: If yes, can the HOA insure the buildings including the interior (carpets, kitchen cabinets, etc) providing our ‘master policy’ requires it? Yes

Q4: If no, and only the skeleton of each building can be covered, is my only option to purchase Condo H0-6 policy? No, you could also purchase what is in essence renter's insurance which covers all or your "interior possessions".

Q5: Is 'Policy statement' the same thing as 'declaration'?[/quote]
Not sure on that one, but would think so.
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Old 07-12-2010, 06:28 PM
 
5 posts, read 12,676 times
Reputation: 11
Kyle,

Your reply is quite helpful. Thank you. The renter's insurance is really a valuable advice.

I did not know how to match the Citizens Commercial Residential 'building' definition with our Declaration. Citizens manual says:

Building, meaning the building or structure described in the Declarations, including
Completed additions
Fixtures, including outdoor fixtures
Permanently installed
a. Machinery, and
b. Equipment

(Does it include A/C units on the roof?)


Our Declaration does not describe the building at all. It only describes what should be insured and if it is not, the policy statement should clearly list all exlusions. Here is the quote:

'The policies shall state whether the following items are included:

A/C; Appliances (whether or not built in); carpets; inside paint; non-load-bearing- interior walls; glass windows and doors. '

No mention of A/C units or hot water heaters either even though they area attached.

Do you think it may be a good idea to make a simple form and ask our agent to check off the items that may be exluded? Or, should Citizen check off these items?

Last edited by Karmela; 07-12-2010 at 06:37 PM.. Reason: all html
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Old 07-13-2010, 11:58 AM
 
21,109 posts, read 30,189,612 times
Reputation: 19474
Some things obviously wouldn't be included, but I would make sure the A/C if it's an exterior unit, is part of it. The hot water heater is usually your own responsibility unless you live in a bigger building with a common boiler. The building's policy should also include glass windows and doors. Your agent should be able to come up with a more simplistic list of what is/is not included, and then go from there.
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Old 07-14-2010, 04:52 PM
 
5 posts, read 12,676 times
Reputation: 11
Yes, each building has 4 individually owned townhouses and the A/C units are on the roof. Each owner is responsible for purchasing and maintaining his A/C unit. The wind deductibles are $14K/ per building. So, even if the three A/C units are blown away the insurance would not cover it.

Now the puzzle is, who is responsible for paying the deductibles? Our documents do not say and the insurance agent told us said the HOA is responsible for deductibles. Hmm, why should I pay for replacing someone's A/C unit?

Also, some owners have hurricane shutters but most do not. If 2x4 goes thru their glass sliding doors and the damage is $10K inside their unit is HOA responsible for covering those damages also?

Hurricane shutters are not mandatory in our HOA. Homeowners insurance is not mandatory either. I know we may have a problem. How can we solve the problem without amending our covenants is not clear.

NFIP/FEMA does not allow the Association to purchase flood insurance on buildings because the Association does not have an 'insurable interest' in individually owned townhouse units. Each owner must purchase his flood insurance.

But Citizens is different. They will allow the Association to purchase a master policy for 'buildings' if the Covenants require it. I am not sure what does the Florida law says about 'insurable interest' ? In other words, is insurable interest of any HOA defined by the covenants?
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