Florida is the only state to address and provide a statutory definition for a “re-opened claim” or a “supplemental claim.” Florida’s law is not a consumer protection law. Instead, it is an insurance company protection law. The current edition of Florida’s Supplemental and Reopened claims law reads as follows: “627.70132 Notice of property insurance claim.— (1) As used in this section, the term: (a) ’Reopened claim’ means a claim that an insurer has previously closed, but that has been reopened upon an insured’s request for additional costs for loss or damage previously disclosed to t ..read more

As Merlin attorney Jonathan Bukowski previously discussed, the Colorado Common Interest Ownership Act (CCIOA) sets forth specific minimum insurance requirements for common interest communities, such as condominiums and homeowners associations (HOAs). These requirements are designed to ensure that common elements and, in some cases, individual units are adequately insured.  In addition to the CCIOA, in May 2023, Colorado passed legislation establishing the Fair Access to Insurance Requirements (FAIR) Plan.1 The legislation creates a shared market plan where insurance companies po ..read more

Deductible buy-down insurance, also referred to as buyback deductible insurance, is designed to reduce the deductible that an insured party would have to pay in the event of a claim. It operates on a simple principle: by purchasing a deductible buy-down policy or endorsement, the insured party can reduce or even eliminate the deductible that would be due if a loss occurs. This mechanism is particularly relevant for policyholders when the deductible on a claim is set at a high amount. Deductible buy-down insurance is a powerful tool that offers financial protection and risk mitigation for condo ..read more

Well, folks, another hurricane season in Florida has come and gone, leaving us with nothing but a collective sigh of relief and the looming specter of potential disaster. In the spirit of commemorating the official end of hurricane season, I urge you to take a moment to reflect on your condo association’s insurance choices. Because let’s face it, nothing says “peace of mind” like a flood that wipes out your savings and leaves unit owners drowning in assessments. Picture this: You’ve been diligently saving a few thousand bucks every month by opting for a smaller premium. Life is good until your ..read more

As an attorney who has represented hundreds of condominium associations following losses, I understand the importance of having the right insurance policies in place to protect your association’s assets and financial well-being. Fidelity, Employee Dishonesty, and Crime Insurance are crucial components of a comprehensive insurance plan for condominium associations. Yet, it is a very complex type of insurance. Condominium boards and property managers often ask me what they should be aware of to purchase the best type of Fidelity, Employee Dishonesty, and Crime Insurance available and how to work ..read more

When a condominium association finds itself defending a claim asserted by a unit owner, it is imperative to understand what is the association’s liability insurance carrier’s duty to defend the claim. The Ninth Circuit Court of Appeal recently addressed an insurer’s duty to defend in Premier Construction and Remodel, Inc. v. Mesa Underwriters Specialty Insurance Company.1 In this case, there was an underlying construction defect lawsuit filed by a homeowner against Premier Construction and Remodel, Inc. (“Premier”) and Robert Deville (“Deville”), who contracted with them to remodel his condomi ..read more

Recent articles in the Miami Herald and Insurance Journal reported on massive fraud from a Condominium Association by its officers, board members, and leaders. The Miami-Dade State Attorney’s Office said it had charged five current and former association board members with racketeering violations, grand theft, money laundering, and fabricating evidence. In addition, two vendors were criminally charged for receiving payments from the fraudulent invoices, which totaled over $1.2 million. Florida law requires Condominium Associations to carry Crime and Fidelity Insurance or bonds to protect again ..read more

If you own a condo in California, it’s a safe bet you are not covered against damage caused by an earthquake (“EQ”). EQ damage is typically an excluded peril under HO-6 and similar condo policies. EQ coverage is required to be offered, but only about 15% of condo owners choose to pay an additional premium to cover this peril despite reports1 that within the next 30 years, there is (1) over a 99% chance that one or more M6.7 or greater EQs will strike somewhere in California; (2) a 75% chance one or more M7.0 or greater EQs will strike Southern California; and (3) a 76% chance one or more M7.0 ..read more

High rise condominiums next to the ocean are subject to storm surge and erosion. While rare, I have represented a number of condominiums that collapsed during a hurricane event. Hurricane Nicole has collapsed at least one Florida condominium. A news outlet reported the following: A seven-story condominium building in Daytona Beach partially collapsed Thursday after Nicole, which made landfall south of Vero Beach as a Category 1 hurricane, brought strong winds, rain and rough surf to the area. Pirate’s Cove was one of at least 13 buildings evacuated Wednesday due to the threat of collapse fro ..read more

Following a hurricane, hailstorm, or strong thunderstorm, property managers and association boards should not make the mistake of sending the maintenance employee as the only person to inspect for possible damage to the roof. Roof damages are difficult for untrained people to detect. Insurance companies send adjusters to specialized schools taught by roof damage specialists to learn how to determine if strong winds or hail damaged a roof. By not sending a trained roof damage specialist, millions of dollars can be lost as a result of roofs wearing out far sooner than expected or leaks developin ..read more