1 . Do not assume coverage will not apply because it was an owner ’ s component that caused the loss .
2 . When these demands are received , contact your insurance broker for assistance . They see these claims every day and are best suited to advise based on your policy and CC & Rs .
In next quarter ’ s edition , we will tackle that pesky chicken and egg !
In Wall Water Damage
Brian Kalmenson , CIRMS , is a Commercial Insurance Specialist with the Kirk Miller Insurance Agency , an agency specializing in community associations throughout California .
Insurance Obligations . What do the CC & Rs call for the association to insure ? If the interior damages are to an owner ’ s flooring and cabinetry , but the CC & Rs call for a “ bare walls ” master policy , then the owner ’ s insurance remains on the hook for the unit interior damages .
Deductible . Let us say the association has a $ 10,000 property deductible and there is a $ 8,500 loss to the unit interior . Even if the CC & Rs call for the association to insure the unit interior property , because the damages are under the association ’ s deductible , the owner ’ s insurance would maintain responsibility for the interior damages .
While there is much more to this topic , there are two main takeaways that will help associations navigate through the inevitable claim demands from owners ’ insurance carriers .
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