Tag: Community Association Insurance

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Review Terms of Insurance Policies after Purchasing Them

Be sure to review the terms of your association's insurance policies after purchasing them. Somewhere in the purchasing process, an agent may have entered a wrong number, and your association may be getting less coverage than it expected.

This happened in a recent case in which a member suffered substantial water and mold damage to her condominium as a result of Hurricane Katrina. After the hurricane, the member notified the association and made claims under the applicable policies for damages sustained to her unit. These claims were either denied or only partially paid.

Association Not Required to Give Member Insurance Proceeds

Facts: A water leak developed directly above a member's condominium. The member permitted a restoration company into his condo to dry the carpet and an environmental inspection group to inspect the premises. The inspection results showed that the member's condo contained visible microbial growth on the closet and bathroom walls. The association then asked the member to move from his condo so the remediation could be performed. The member denied that his condo had any mold and refused to vacate unless the association paid his relocation expenses.