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Insurance Question

Started by SharonB6 • 8 replies • 1242 views

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SharonB6 (Pennsylvania)
Posts: 70
Posted:
Our development is suppose have around 700+ homes in it.
The first the Master Association/builder were in business they insured 700+ homes at about $7000
The second year the builder brought their insurance down to 140 homes (the amount that were actually built) about $2800

So why would they insure all potential homes the first year but bring it down to actual built the second? Were they over insured the first year or under insured the second? Or do i just have no idea what I am talking about.

Thanks!
DonnaS (Tennessee)
Posts: 5,671
Posted:

Sharon,

What kind of insurance are we talking about? $7000 for 700 homes is awefully low forstructure. Is it liability or what? Insure potential homes does not make sense to me. Are these stand alone homes?
SharonB6 (Pennsylvania)
Posts: 70
Posted:
I am sorry I explained that weird.

We are suppose to have 700+ homes in our development. We currently do not have that many. The builder insurance policy was based on 700+ homes the first year. It confuses me because there is no way the could of built that many homes in one year, so why would insurance even be calculated that way.

The second year our insurance was based on 140 homes and that was the actual amount we have. So there is like is a ton of open space that is suppose to hold the rest of the 550+ homes.

the insurance is general liability and crime

How much do you pay in insurance?

MaryA1 (Arizona)
Posts: 388
Posted:
Sharon,

The builder should be carrying the cost of insurance for any properties that are not developed. The assn should only be paying liability insurance for the common areas. In a community of single family homes the HOA does not pay for liability insurance for the private properties in the HOA.
SharonB6 (Pennsylvania)
Posts: 70
Posted:
OMG! You are right.. They made the Master Association pay for open land that they should of covered!!!
SharonB6 (Pennsylvania)
Posts: 70
Posted:
OMG!! I just looked at the insurance policy! It starts 6 months before any houses were built!!

Where can I find information saying that the HOA isn't responsible undeveloped land just the common areas. Is that in my declaration or in PA state laws?

TimB4 (Tennessee)
Posts: 21,062
Posted:
State law should have something about this. However, I would check both.
MaryA1 (Arizona)
Posts: 388
Posted:
Sharon,

Look in your CCRs. Oftentimes there is an article about insurance and what type is required. The PA HOA statutes have an article on ins that you may want to also read.

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