With all of the flooding that seems to be happening around the country lately, you might want to take a minute to check to see of your home or a home you are thinking about buying or renting is in a flood zone. New flood maps are released on a regular basis, so even if your home was not in a flood zone when you bought it, the status might have changed.
On the website freeflood.com you can find out easily and quickly if your home is in a flood zone. Simply enter an address and you instantly see the flood zone information.
You really should really give this a try!
Friday, September 24, 2010
Friday, January 22, 2010
Amanda's Law goes into Effect on 2/22/2010
Carbon monoxide alarm requirements to go into effect February 22, 2010
As the result of legislation, Amanda’s Law will go into effect on February 22, 2010. It requires essentially all residences, both new and existing, to have carbon monoxide alarms installed. The specific requirements differ for new and existing residences and also on when the buildings were built and subcategories of occupancy groups.
Probably the most asked question will be the requirement for existing one and two family residences. They will be required to have one carbon monoxide alarm installed on the lowest story having a sleeping area.
The proposal to modify the Uniform Fire Prevention and Building Code, in order to comply with Amanda's Law, is in the process of being adopted as an emergency rule. The following link provides the proposed code text and legislation, Amanda’s Law. http://www.dos.state.ny.us/code/COAlarm.htm
As the result of legislation, Amanda’s Law will go into effect on February 22, 2010. It requires essentially all residences, both new and existing, to have carbon monoxide alarms installed. The specific requirements differ for new and existing residences and also on when the buildings were built and subcategories of occupancy groups.
Probably the most asked question will be the requirement for existing one and two family residences. They will be required to have one carbon monoxide alarm installed on the lowest story having a sleeping area.
The proposal to modify the Uniform Fire Prevention and Building Code, in order to comply with Amanda's Law, is in the process of being adopted as an emergency rule. The following link provides the proposed code text and legislation, Amanda’s Law. http://www.dos.state.ny.us/code/COAlarm.htm
Wednesday, December 16, 2009
What does the term "Agreed Value" mean?
Agreed Value is an agreement made between the Insurance Company and the Policy Holder at policy inception that the limit of insurance listed in the schedule of property is the item's value, and this is the amount that will be paid by the company in the event of a total loss.
The election of this option suspends the application of the coinsurance provisions of the policy.
This is made by inserting an agreed value amount and expiration date for that agreed value amount under the Agreed Value heading in the Declarations page.
An Agreed Value must be specified for each location and type of covered property to which the election applies. The Insurance Company may require a recent appraisal of the property or properties or an explanation of how the values were determined. At a minimum, it will normally require a signed statement as to the property values. If the Policy Holder fails to submit the updated statement of values, coinsurance will be reinstated. If a loss occurs during a period of time when the agreed value coverage is in place, the Insurance Company will pay no more for the loss or damage to the property than the proportion that the Limit of Insurance for the damaged or lost property bears to the Agreed Value shown for it in the Declarations page.
Agreed value coverage does not provide complete protection against underinsurance, since the most the Company will pay, regardless of the agreed value stated, is the Limit of Insurance applicable to the covered property.
The election of this option suspends the application of the coinsurance provisions of the policy.
This is made by inserting an agreed value amount and expiration date for that agreed value amount under the Agreed Value heading in the Declarations page.
An Agreed Value must be specified for each location and type of covered property to which the election applies. The Insurance Company may require a recent appraisal of the property or properties or an explanation of how the values were determined. At a minimum, it will normally require a signed statement as to the property values. If the Policy Holder fails to submit the updated statement of values, coinsurance will be reinstated. If a loss occurs during a period of time when the agreed value coverage is in place, the Insurance Company will pay no more for the loss or damage to the property than the proportion that the Limit of Insurance for the damaged or lost property bears to the Agreed Value shown for it in the Declarations page.
Agreed value coverage does not provide complete protection against underinsurance, since the most the Company will pay, regardless of the agreed value stated, is the Limit of Insurance applicable to the covered property.
Wednesday, December 2, 2009
Time to think about Snowmobiles!!!
Does my Snowmobile require a registration in New York State?
You must register your snowmobile if you operate the snowmobile in New York State. A registration is not required if the snowmobile is operated on the private property of the owner or private property the owner has a contractual right to use. A snowmobile that is registered in another state and owned by a resident of that state, but is operated in NYS, must get a NYS registration. New York State also requires a registration on trailers.
Snowmobile registration numbers are permanently assigned to the snowmobile when it is first registered. If you have a snowmobile that was first registered before August 1995, you must supply the numbers that attach to your snowmobile. You must display those numbers on each side of the snowmobile hood. The numbers
1) must be: made from a reflective material
2) block style and 3 inches high or taller,
3) a color different from the hood and easy to see.
4) Be sure to include a hyphen or a space between the last number and the capital letters.
After August 1995, new snowmobile registrations receive a Registration Decal set. Attach the decals to each side of the hood. Validation stickers are issued annually. Put the stickers on the upper left-hand corner of the decal. Put the annual validation stickers to the left of the numbers on snowmobiles registered before 1995.
How do I register my snowmobile?
To register your snowmobile, bring the following items to a DMV office:
· A completed form MV-82SN (Snowmobile Registration Application).
· A completed form DTF-802 (Statement of Transaction for Sales Tax ) or proof of exemption or tax paid. (See the DMV Forms page for additional tax information and forms).
· Proof of ownership and bill of sale. Non-residents can use photocopies of proof of ownership and are not required to pay the NYS sales tax if the snowmobile is registered in another state.
· Proof of identity.
· Cash, check or credit card for the fee. Pay the registration fee of $45.
How do I renew my snowmobile registration?
You cannot renew a snowmobile registration on-line. Use your renewal notice to renew by mail. If you do not have a renewal notice, apply for the renewal with form MV-82SN or visit your local DMV office.
Are helmets required when on a snowmobile?
Yes. Since April 1, 1998, NYS requires each operator and passenger on a snowmobile to wear protective headgear approved by the Commissioner of the NYS Office of Parks, Recreation and Historic Preservation. You are not required to wear a helmet if:
· the snowmobile is operated on property where the operator or passenger is the property owner
· the snowmobile is operated on private property which the operator or passenger has a contractual right to use. This exemption does not apply if the owner or passenger is a member of a club or association and the owner does not receive compensation for snowmobile operation.
Some Insurance carriers offer the option of adding your snowmobile insurance to your homeowner policy. Contact your agent to see if this an option with your company.
Machines that exceed 650 cc will be considered a high performance machine by many carriers. Please be advised that not all companies will write a policy for this type of machine. Some companies will offer liability only coverage for older machines that do not require physical damage coverage. Most companies offer a discount for completion of a certified safety course or membership in a snowmobile association. Most companies can offer a multi vehicle discount if you have more than one machine.Youthful operators are usually required to complete a safety course if under the age of 16.
You must register your snowmobile if you operate the snowmobile in New York State. A registration is not required if the snowmobile is operated on the private property of the owner or private property the owner has a contractual right to use. A snowmobile that is registered in another state and owned by a resident of that state, but is operated in NYS, must get a NYS registration. New York State also requires a registration on trailers.
Snowmobile registration numbers are permanently assigned to the snowmobile when it is first registered. If you have a snowmobile that was first registered before August 1995, you must supply the numbers that attach to your snowmobile. You must display those numbers on each side of the snowmobile hood. The numbers
1) must be: made from a reflective material
2) block style and 3 inches high or taller,
3) a color different from the hood and easy to see.
4) Be sure to include a hyphen or a space between the last number and the capital letters.
After August 1995, new snowmobile registrations receive a Registration Decal set. Attach the decals to each side of the hood. Validation stickers are issued annually. Put the stickers on the upper left-hand corner of the decal. Put the annual validation stickers to the left of the numbers on snowmobiles registered before 1995.
How do I register my snowmobile?
To register your snowmobile, bring the following items to a DMV office:
· A completed form MV-82SN (Snowmobile Registration Application).
· A completed form DTF-802 (Statement of Transaction for Sales Tax ) or proof of exemption or tax paid. (See the DMV Forms page for additional tax information and forms).
· Proof of ownership and bill of sale. Non-residents can use photocopies of proof of ownership and are not required to pay the NYS sales tax if the snowmobile is registered in another state.
· Proof of identity.
· Cash, check or credit card for the fee. Pay the registration fee of $45.
How do I renew my snowmobile registration?
You cannot renew a snowmobile registration on-line. Use your renewal notice to renew by mail. If you do not have a renewal notice, apply for the renewal with form MV-82SN or visit your local DMV office.
Are helmets required when on a snowmobile?
Yes. Since April 1, 1998, NYS requires each operator and passenger on a snowmobile to wear protective headgear approved by the Commissioner of the NYS Office of Parks, Recreation and Historic Preservation. You are not required to wear a helmet if:
· the snowmobile is operated on property where the operator or passenger is the property owner
· the snowmobile is operated on private property which the operator or passenger has a contractual right to use. This exemption does not apply if the owner or passenger is a member of a club or association and the owner does not receive compensation for snowmobile operation.
Some Insurance carriers offer the option of adding your snowmobile insurance to your homeowner policy. Contact your agent to see if this an option with your company.
Machines that exceed 650 cc will be considered a high performance machine by many carriers. Please be advised that not all companies will write a policy for this type of machine. Some companies will offer liability only coverage for older machines that do not require physical damage coverage. Most companies offer a discount for completion of a certified safety course or membership in a snowmobile association. Most companies can offer a multi vehicle discount if you have more than one machine.Youthful operators are usually required to complete a safety course if under the age of 16.
Tuesday, November 3, 2009
COMPANY FURNISHED VEHICLES
The Business Auto policy does not extend coverage to employees and their family members if the company furnished vehicle is operated outside the scope of the employer's permission or if the employee rents or borrows a vehicle on a personal basis which is not owned, rented, or borrowed by the business. Also, even in those instances in which coverage extends to the employee under the Business Auto policy, protection is subject to the policy limits, which must be shared with the named insured ( The Employer).
For example, an employer's permission for use of a company vehicle may not extend to employee vacation or other personal activities or to use of the vehicle by members of the employee's family. Even if permission is granted for personal use of the vehicle, the Business Auto policy covers only vehicles owned, rented, or borrowed by the named insured. No coverage extends to vehicles rented or borrowed by an employee on a personal basis.
Individuals who drive a company furnished vehicle must make other insurance arrangements to protect against these coverage gaps in the Business Auto policy. Four alternatives are available:
Expanding the Personal Auto Policy -- Those employees who own one or more personal vehicles in addition to operating a company-furnished car must insure the personal vehicles under a Personal Auto policy. This normally excludes liability and physical damage coverage for the operation of a vehicle furnished for the insured's regular use, but this exclusion may be eliminated by attachment of an Extended Non-Owned Liability Endorsement. This grants coverage for the insured and spouse for operation of a company furnished vehicle and for operating any non-owned vehicle.
Named Non-Owner Coverage -- Individuals who own no personal vehicles may acquire a Personal Auto policy with a Named Non-Owner Endorsement. This provides coverage for the named individual and other listed family members while operating a non-owned vehicle, including a company furnished vehicle. Most carriers prefer not to issue the Personal Auto policy with this endorsement on the presumption that the premium is inadequate; no owned vehicle exists to act as the rating basis.
For example, an employer's permission for use of a company vehicle may not extend to employee vacation or other personal activities or to use of the vehicle by members of the employee's family. Even if permission is granted for personal use of the vehicle, the Business Auto policy covers only vehicles owned, rented, or borrowed by the named insured. No coverage extends to vehicles rented or borrowed by an employee on a personal basis.
Individuals who drive a company furnished vehicle must make other insurance arrangements to protect against these coverage gaps in the Business Auto policy. Four alternatives are available:
Expanding the Personal Auto Policy -- Those employees who own one or more personal vehicles in addition to operating a company-furnished car must insure the personal vehicles under a Personal Auto policy. This normally excludes liability and physical damage coverage for the operation of a vehicle furnished for the insured's regular use, but this exclusion may be eliminated by attachment of an Extended Non-Owned Liability Endorsement. This grants coverage for the insured and spouse for operation of a company furnished vehicle and for operating any non-owned vehicle.
Named Non-Owner Coverage -- Individuals who own no personal vehicles may acquire a Personal Auto policy with a Named Non-Owner Endorsement. This provides coverage for the named individual and other listed family members while operating a non-owned vehicle, including a company furnished vehicle. Most carriers prefer not to issue the Personal Auto policy with this endorsement on the presumption that the premium is inadequate; no owned vehicle exists to act as the rating basis.
Tuesday, September 1, 2009
Condo Coverage
Most new condominium owners are woefully uninformed about the condominium exposures they face and will welcome information and guidance from an insurance professional. Condominium association and unit-owner policies mesh to provide sound protection for the individual's property exposures, an individual’s liability exposures and to cover collectively owned property and related exposure to third-party claims.
The two contracts are products of years of challenging work by insurance industry policy drafters, which started with the introduction of the condominium concept. Those writing the policies have had to consider state laws and other legal issues. They also had to contend with the pioneering and ongoing experience of insurance companies. The unique and complex risks of condominium ownership and the responsibilities of association board members and officers, consequently, have been minimized.
Condominium association forms are adaptations of general business property forms. Policy provisions have been modified for the distinct residential and commercial condominium needs. Condominium unit-owners forms are available under commercial condominium programs for business and professional occupancies.
The law of condominiums in each state contains a broad definition of "common elements" and "unit." Bylaws and declarations developed for each condominium to amplify and provide precise, detailed definitions of the terms. The policy drafters, with input from legal authorities, have fashioned provisions in the pertinent insurance forms and employed language that addresses the requirements. They continue to monitor statutory developments and experience of insurance companies, and to clarify and amend coverage in revised editions of the forms as warranted.
Building coverage in forms drafted for associations includes property within the generally accepted meaning of "common elements." Property within the air space (condominium unit) enclosed by the unfinished surfaces of perimeter walls, floors and ceilings, to which a unit-owner has title and sole interest, is covered by the (homeowners) unit-owners policy.
Building coverage under a condominium association coverage form applies to the building(s) or structure(s) described in the declarations, for which a limit of insurance is shown. It includes: completed additions; fixtures outside of individual units; permanently installed machinery and equipment; association owned personal property (located outside the units and used for condo property maintenance); and, when in a unit, fixtures, improvements and alterations that are part of the building and appliances.
Business personal property coverage in an association policy includes coverage for personal property owned by the association (owned indivisibly by all unit-owners) and leased personal property.
Individual unit-owners property coverages are similar to those of homeowners contents broad form 4 and in personal property coverage (C) of homeowners broad form 2. A significant modification, brought about by the special nature of condominium ownership, is the inclusion of dwelling coverage (A) for specified and limited kinds of property. Dwelling coverage in the unit-owners form covers: alterations, appliances, fixtures and improvements that are part of the building, and property which is the unit-owner's insurance responsibility.
The association policy and the unit-owners policy contain carefully crafted language that clarifies which policy applies in certain situations, a prime example being loss to alterations, appliances, or improvements. Installations, at the unit-owner's expense, of such items as interior walls, bookshelves, wall mirrors, a whirlpool bath or sauna, a built-in stove, or microwave were subjects of uncertainty in the early days of condominiums.
Current association policies, in general, specify that building coverage therein applies, when the association is required by declarations and regardless of ownership to insure: fixtures; improvements and alterations that are part of the building (structure); appliances for refrigeration, ventilating, cooking, dishwashing, laundering, security or housekeeping. Other insurance provisions in a unit-owners policy state that insurance is excess over association insurance covering the same property covered by the unit-owners policy.
The upshot is that the owner of a condominium unit is well-protected in this and other property loss situations because of the corroborative design of the two important policies. Both policies are written for cooperative apartments, as well as condominiums, and these conclusions also are applicable to them.
Ownership of a residential condominium unit involves risks faced solely by the unit-owner as well as risks that are common to all of a group’s membership. Those who arrange insurance for the exposures are advised to be familiar with the special coverage features of the homeowners unit-owners form and, most especially, the coverage options that are available for such property ownership and use. Chief among the options are endorsements for loss assessment coverage and rental of a unit to others. Consideration of both is essential.
Loss assessment coverage is especially important for condominium living and should be discussed and made clear to a unit owner. It applies to the insured's share of a loss assessment arising from perils or claims of a kind within the scope of the policy. Insufficient limits of fire insurance carried on the building by the association are examples of a situation that would give rise to an assessment. Policies issued by most insurers contain a built-in limit of loss assessment coverage under Section I in the amount of (typically) $1,000.
Loss assessment coverage in the amount of (typically) $1,000 is also basically included under Section II in forms used by most insurers. It applies to bodily injury or property damage within the scope of Section II, and also to liability for an act of an association director, officer, or trustee in that capacity.
There is good reason to discuss increasing the basic limit and to urge it in many cases. The business of many associations, especially large ones, is conducted by unit-owner volunteers who are experienced attorneys, accountants, contractors, insurance agents, etc. They keep abreast of property values and conditions and make certain that building and liability insurance is proper and adjusted for the association's needs when necessary. But all condominium unit-owners are not so fortunate.
In any event, when arranging insurance coverage for condominium unit-owners, it is important to discuss the option of increasing the basic limits of loss assessment coverage, and that higher limits be recommended. This is generally accomplished by endorsement for reasonable additional premium. Increase in loss assessment coverage under Section I and Section II from $1,000 to $10,000, for example, carries a $5 additional premium under several policies reviewed. Assessment for earthquake loss, not covered under the foregoing endorsement, is insured by various companies for an additional premium under a separate endorsement.
Ownership of a residential condominium unit involves risks faced solely by the unit-owner as well as risks that are common to all of a group’s membership. Those who arrange insurance for the exposures are advised to be familiar with the special coverage features of the homeowners unit-owners form and, most especially, the coverage options that are available for such property ownership and use. Chief among the options are endorsements for loss assessment coverage and rental of a unit to others. Consideration of both is essential.
Loss assessment coverage is especially important for condominium living and should be discussed and made clear to a unit owner. It applies to the insured's share of a loss assessment arising from perils or claims of a kind within the scope of the policy. Insufficient limits of fire insurance carried on the building by the association are examples of a situation that would give rise to an assessment. Policies issued by most insurers contain a built-in limit of loss assessment coverage under Section I in the amount of (typically) $1,000.
Loss assessment coverage in the amount of (typically) $1,000 is also basically included under Section II in forms used by most insurers. It applies to bodily injury or property damage within the scope of Section II, and also to liability for an act of an association director, officer, or trustee in that capacity.
There is good reason to discuss increasing the basic limit and to urge it in many cases. The business of many associations, especially large ones, is conducted by unit-owner volunteers who are experienced attorneys, accountants, contractors, insurance agents, etc. They keep abreast of property values and conditions and make certain that building and liability insurance is proper and adjusted for the association's needs when necessary. But all condominium unit-owners are not so fortunate.
In any event, when arranging insurance coverage for condominium unit-owners, it is important to discuss the option of increasing the basic limits of loss assessment coverage, and that higher limits be recommended. This is generally accomplished by endorsement for reasonable additional premium. Increase in loss assessment coverage under Section I and Section II from $1,000 to $10,000, for example, carries a $5 additional premium under several policies reviewed. Assessment for earthquake loss, not covered under the foregoing endorsement, is insured by various companies for an additional premium under a separate endorsement.
The importance of the rental coverage option is clear when we note the high percentage of residential condominium units that are "second homes" for eventual retirement living. The purchase of many, particularly in warm-weather and resort areas, is made possible by the income from year-round rental availability, except for the usual two weeks reserved by the owner. In addition to the income generated, the tax deductions for mortgage interest, property tax, maintenance, and depreciation are significant. Unit-owners' rental to others coverage is essential in such cases. But its recommendation is not confined to year-round rental.
The various endorsements optionally available for use with renters package policies to expand and adapt coverage to the specific needs of the insured, including the scheduling of valuable personal property items, also are available for unit owners. A personal property replacement cost endorsement that converts coverage from an actual cash value to a replacement cost basis is of major importance. Flood insurance must not, of course, be overlooked where the risk exists.
The same package policy used for condominium unit-owners is generally issued by insurers to cooperative apartment unit owners because the exposures are similar. Their insurance meshes with that carried by the cooperative corporation, and the described coverage options are applicable.
The two contracts are products of years of challenging work by insurance industry policy drafters, which started with the introduction of the condominium concept. Those writing the policies have had to consider state laws and other legal issues. They also had to contend with the pioneering and ongoing experience of insurance companies. The unique and complex risks of condominium ownership and the responsibilities of association board members and officers, consequently, have been minimized.
Condominium association forms are adaptations of general business property forms. Policy provisions have been modified for the distinct residential and commercial condominium needs. Condominium unit-owners forms are available under commercial condominium programs for business and professional occupancies.
The law of condominiums in each state contains a broad definition of "common elements" and "unit." Bylaws and declarations developed for each condominium to amplify and provide precise, detailed definitions of the terms. The policy drafters, with input from legal authorities, have fashioned provisions in the pertinent insurance forms and employed language that addresses the requirements. They continue to monitor statutory developments and experience of insurance companies, and to clarify and amend coverage in revised editions of the forms as warranted.
Building coverage in forms drafted for associations includes property within the generally accepted meaning of "common elements." Property within the air space (condominium unit) enclosed by the unfinished surfaces of perimeter walls, floors and ceilings, to which a unit-owner has title and sole interest, is covered by the (homeowners) unit-owners policy.
Building coverage under a condominium association coverage form applies to the building(s) or structure(s) described in the declarations, for which a limit of insurance is shown. It includes: completed additions; fixtures outside of individual units; permanently installed machinery and equipment; association owned personal property (located outside the units and used for condo property maintenance); and, when in a unit, fixtures, improvements and alterations that are part of the building and appliances.
Business personal property coverage in an association policy includes coverage for personal property owned by the association (owned indivisibly by all unit-owners) and leased personal property.
Individual unit-owners property coverages are similar to those of homeowners contents broad form 4 and in personal property coverage (C) of homeowners broad form 2. A significant modification, brought about by the special nature of condominium ownership, is the inclusion of dwelling coverage (A) for specified and limited kinds of property. Dwelling coverage in the unit-owners form covers: alterations, appliances, fixtures and improvements that are part of the building, and property which is the unit-owner's insurance responsibility.
The association policy and the unit-owners policy contain carefully crafted language that clarifies which policy applies in certain situations, a prime example being loss to alterations, appliances, or improvements. Installations, at the unit-owner's expense, of such items as interior walls, bookshelves, wall mirrors, a whirlpool bath or sauna, a built-in stove, or microwave were subjects of uncertainty in the early days of condominiums.
Current association policies, in general, specify that building coverage therein applies, when the association is required by declarations and regardless of ownership to insure: fixtures; improvements and alterations that are part of the building (structure); appliances for refrigeration, ventilating, cooking, dishwashing, laundering, security or housekeeping. Other insurance provisions in a unit-owners policy state that insurance is excess over association insurance covering the same property covered by the unit-owners policy.
The upshot is that the owner of a condominium unit is well-protected in this and other property loss situations because of the corroborative design of the two important policies. Both policies are written for cooperative apartments, as well as condominiums, and these conclusions also are applicable to them.
Ownership of a residential condominium unit involves risks faced solely by the unit-owner as well as risks that are common to all of a group’s membership. Those who arrange insurance for the exposures are advised to be familiar with the special coverage features of the homeowners unit-owners form and, most especially, the coverage options that are available for such property ownership and use. Chief among the options are endorsements for loss assessment coverage and rental of a unit to others. Consideration of both is essential.
Loss assessment coverage is especially important for condominium living and should be discussed and made clear to a unit owner. It applies to the insured's share of a loss assessment arising from perils or claims of a kind within the scope of the policy. Insufficient limits of fire insurance carried on the building by the association are examples of a situation that would give rise to an assessment. Policies issued by most insurers contain a built-in limit of loss assessment coverage under Section I in the amount of (typically) $1,000.
Loss assessment coverage in the amount of (typically) $1,000 is also basically included under Section II in forms used by most insurers. It applies to bodily injury or property damage within the scope of Section II, and also to liability for an act of an association director, officer, or trustee in that capacity.
There is good reason to discuss increasing the basic limit and to urge it in many cases. The business of many associations, especially large ones, is conducted by unit-owner volunteers who are experienced attorneys, accountants, contractors, insurance agents, etc. They keep abreast of property values and conditions and make certain that building and liability insurance is proper and adjusted for the association's needs when necessary. But all condominium unit-owners are not so fortunate.
In any event, when arranging insurance coverage for condominium unit-owners, it is important to discuss the option of increasing the basic limits of loss assessment coverage, and that higher limits be recommended. This is generally accomplished by endorsement for reasonable additional premium. Increase in loss assessment coverage under Section I and Section II from $1,000 to $10,000, for example, carries a $5 additional premium under several policies reviewed. Assessment for earthquake loss, not covered under the foregoing endorsement, is insured by various companies for an additional premium under a separate endorsement.
Ownership of a residential condominium unit involves risks faced solely by the unit-owner as well as risks that are common to all of a group’s membership. Those who arrange insurance for the exposures are advised to be familiar with the special coverage features of the homeowners unit-owners form and, most especially, the coverage options that are available for such property ownership and use. Chief among the options are endorsements for loss assessment coverage and rental of a unit to others. Consideration of both is essential.
Loss assessment coverage is especially important for condominium living and should be discussed and made clear to a unit owner. It applies to the insured's share of a loss assessment arising from perils or claims of a kind within the scope of the policy. Insufficient limits of fire insurance carried on the building by the association are examples of a situation that would give rise to an assessment. Policies issued by most insurers contain a built-in limit of loss assessment coverage under Section I in the amount of (typically) $1,000.
Loss assessment coverage in the amount of (typically) $1,000 is also basically included under Section II in forms used by most insurers. It applies to bodily injury or property damage within the scope of Section II, and also to liability for an act of an association director, officer, or trustee in that capacity.
There is good reason to discuss increasing the basic limit and to urge it in many cases. The business of many associations, especially large ones, is conducted by unit-owner volunteers who are experienced attorneys, accountants, contractors, insurance agents, etc. They keep abreast of property values and conditions and make certain that building and liability insurance is proper and adjusted for the association's needs when necessary. But all condominium unit-owners are not so fortunate.
In any event, when arranging insurance coverage for condominium unit-owners, it is important to discuss the option of increasing the basic limits of loss assessment coverage, and that higher limits be recommended. This is generally accomplished by endorsement for reasonable additional premium. Increase in loss assessment coverage under Section I and Section II from $1,000 to $10,000, for example, carries a $5 additional premium under several policies reviewed. Assessment for earthquake loss, not covered under the foregoing endorsement, is insured by various companies for an additional premium under a separate endorsement.
The importance of the rental coverage option is clear when we note the high percentage of residential condominium units that are "second homes" for eventual retirement living. The purchase of many, particularly in warm-weather and resort areas, is made possible by the income from year-round rental availability, except for the usual two weeks reserved by the owner. In addition to the income generated, the tax deductions for mortgage interest, property tax, maintenance, and depreciation are significant. Unit-owners' rental to others coverage is essential in such cases. But its recommendation is not confined to year-round rental.
The various endorsements optionally available for use with renters package policies to expand and adapt coverage to the specific needs of the insured, including the scheduling of valuable personal property items, also are available for unit owners. A personal property replacement cost endorsement that converts coverage from an actual cash value to a replacement cost basis is of major importance. Flood insurance must not, of course, be overlooked where the risk exists.
The same package policy used for condominium unit-owners is generally issued by insurers to cooperative apartment unit owners because the exposures are similar. Their insurance meshes with that carried by the cooperative corporation, and the described coverage options are applicable.
Credit Scoring
A credit score can significantly impact the ability to get insurance and it can also impact the cost of insurance. A credit score is a measurement of credit history in numeric form. Insurance companies use credit scores to help determine eligibility for an insurance policy, the types of coverage available and also to decide how much customers will pay for insurance premiums. Insurance companies do not need applicants' permission to run a credit report.
How Credit Scores Impact Insurance Premiums
Insurance companies have years of studies that show people with problem credit are more likely to file insurance claims. According to the logic used by many insurance companies, people who are likely to file claims should pay more for insurance, get reduced insurance coverage or be denied for insurance.
What to know about a credit score when applying for insurance or trying to reduce an insurance premium:
Based on the national average credit score, a score of 700 or higher is a very good to excellent credit score. Te ability to get insurance and to get the best prices on insurance will not be negatively impacted by a credit history in this range.
A credit score that falls between 650 and 700 is considered to be very good credit. The national average credit score in the U.S. is 692. People in this range should meet insurance companies’ financial criterion and insurance premiums shouldn’t be impacted by the credit report and score.
Credit scores that fall between 600 and 650 are still considered "fair," based on the national average credit score. Though no one knows exactly how each company uses a credit report and score, this credit range probably won’t impact insurance rates or the ability to obtain insurance.
If a credit score is less than 600, there may be a problem either obtaining insurance or getting a competitive rate for insurance premiums due to credit history.
What to Do to Improve a Credit Score
There are things that can be done to improve a credit score. Get these items cleaned up and removed from a credit history and there will be a greater likelihood of getting affordable insurance premiums:
There are things that can be done to improve a credit score. Get these items cleaned up and removed from a credit history and there will be a greater likelihood of getting affordable insurance premiums:
If there are any collections agency reports on a credit report and score, find out if these can be settled with the collections agency for a lesser amount. The collections agency must state in writing that they will remove the negative item from a credit history once they receive payment.
A credit score is negatively impacted by late payments, multiple open lines of credit or advancing past credit limits often. Work to pay more than the minimum amount due on credit cards, close credit cards that aren’t need and stay within limits when using credit cards. All of these things can help improve a credit score and the premiums paid for insurance.
If there is a mistake on a credit report and score, immediately contact the appropriate parties to dispute the issue. Once the item has been removed from the credit report, contact the insurance company to let them know the problem has been resolved. Credit reports and credit scores are updated frequently, so insurance companies can see changes right away.
A credit score can greatly impact the ability to get insurance or the cost of insurance premiums. And if the insurance company runs a credit report upon policy renewal, they may decide to non-renew an insurance policy or raise rates if the credit score hasn’t improved.
How Credit Scores Impact Insurance Premiums
Insurance companies have years of studies that show people with problem credit are more likely to file insurance claims. According to the logic used by many insurance companies, people who are likely to file claims should pay more for insurance, get reduced insurance coverage or be denied for insurance.
What to know about a credit score when applying for insurance or trying to reduce an insurance premium:
Based on the national average credit score, a score of 700 or higher is a very good to excellent credit score. Te ability to get insurance and to get the best prices on insurance will not be negatively impacted by a credit history in this range.
A credit score that falls between 650 and 700 is considered to be very good credit. The national average credit score in the U.S. is 692. People in this range should meet insurance companies’ financial criterion and insurance premiums shouldn’t be impacted by the credit report and score.
Credit scores that fall between 600 and 650 are still considered "fair," based on the national average credit score. Though no one knows exactly how each company uses a credit report and score, this credit range probably won’t impact insurance rates or the ability to obtain insurance.
If a credit score is less than 600, there may be a problem either obtaining insurance or getting a competitive rate for insurance premiums due to credit history.
What to Do to Improve a Credit Score
There are things that can be done to improve a credit score. Get these items cleaned up and removed from a credit history and there will be a greater likelihood of getting affordable insurance premiums:
There are things that can be done to improve a credit score. Get these items cleaned up and removed from a credit history and there will be a greater likelihood of getting affordable insurance premiums:
If there are any collections agency reports on a credit report and score, find out if these can be settled with the collections agency for a lesser amount. The collections agency must state in writing that they will remove the negative item from a credit history once they receive payment.
A credit score is negatively impacted by late payments, multiple open lines of credit or advancing past credit limits often. Work to pay more than the minimum amount due on credit cards, close credit cards that aren’t need and stay within limits when using credit cards. All of these things can help improve a credit score and the premiums paid for insurance.
If there is a mistake on a credit report and score, immediately contact the appropriate parties to dispute the issue. Once the item has been removed from the credit report, contact the insurance company to let them know the problem has been resolved. Credit reports and credit scores are updated frequently, so insurance companies can see changes right away.
A credit score can greatly impact the ability to get insurance or the cost of insurance premiums. And if the insurance company runs a credit report upon policy renewal, they may decide to non-renew an insurance policy or raise rates if the credit score hasn’t improved.
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