Storm-Damage-Restoration

Did your association pay for damage from Hurricane Irma with operating funds?

Did you consider a special assessment?

What if half of your owners could be reimbursed up to $2,000 by their insurance company for the amount of the special assessment attributable to hurricane damage. 

Would that change your mind?

Many condo owners in Florida have what is called HO-6 Coverage included in their condominium insurance policy.  According to Paul Mack of Mack Mack & Waltz insurance HO-6 policies include a minimum of $2,000 in what is called loss assessment coverage.

Paul further explains that , “the assessment has to (1) be covered property by the HO-6 (this would exclude landscape, trees, etc) and (2) must be the result of a covered cause of loss (wind, fire, etc) and there would also be a minimum $250 deductible that would apply as well.”

If your owners have HO-6 coverage, it may be wise to take advantage of the opportunity to pay for hurricane damage with funds from  insurance premiums they have already paid.  If many of your owners do not have HO-6 coverage, you may want to let them know about it.

Even if your owners don’t have HO-6 coverage, it may be wise to special assess. If your association experienced damage that caused hundreds or thousands of dollars in damage per owner, this is exactly what a special assessment is for.    Although the damages from Irma in South East Florida were not extreme, there is no reason your board should not clearly explain the expenses to your community and ask that they all pay their share – in order to avoid depleting your bank accounts, which could create issues in the future, in the event of another disaster or emergency repair need.

If you own a home, you should be prepared to pay for emergency repairs.  It should be no different whether you live in a single family home without an association, or if you live in a condominium or homeowner’s association.

The best time to think about this is BEFORE Hurricane season.

by Dan Tiernan, COO, Campbell Property Management

Paul Mack from Mack Mack & Waltz can be reached at (954) 640-6225 or pmack@mackinsurance.com.

  1. Dick Robinson says:

    Hi Dan,
    My Universal P&C policy has a $2,000 loss assessment coverage limit, but then elsewhere says it will pay up to $1,000, as stated below. Confusing. Can you clarify?

    “Loss Assessment.
    We will pay up to $1000 for your share of loss assessment charged during the
    policy period against you by a corporation or association of property owners, when the assessment is made as a result of direct loss to the property, owned by all members collectively, caused by a Peril Insured Against under COVERAGE A–
    DWELLING, other than earthquake or land shock waves or tremors before, during or after a volcanic eruption. This coverage applies only to loss assessments
    charged against you as owner or tenant of the “residence premises.” We do not cover loss assessments charged against you or a corporation or association of
    property owners by any governmental body. The limit of $1000 is the most we will pay with respect to any one loss, regardless of the number of assessments.

    Condition 1. Policy Period, under SECTIONS I and II CONDITIONS, does not apply to this coverage.”

    Thanks.

    Dick Robinson
    Limetree

  2. Ron Lee says:

    Interesting article about special assessing for hurricane damage. Question. Do mobile home communities have the equivalent of an HO-6 insurance coverage?

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