HOA Insurance

Started by DavidA7 • 3 replies • 1090 views

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DavidA7 (California)
Posts: 179

Posted:

We are evaluating a new HOA insurance proposal from Farmers. We have Allstate.

The following coverages are being offered; any other we should concern ourselves with.
HOA in Southern Calif
Small 8 unit Townhome complex consisting of two buildings
No ammenities

PROPERTY

Building
Extended replacement cost (125% OF building) (Allstate does not offer this)
Proeprty Deductible
Condominium Unit Coverage (Improvements and Betterments)
Business Personal Property
Specified Property
Sewer and Drain Backup (Allstate did not have)
Association Fees and Extra Expense
Outdoor Signs
Pollution Clean-up
Outdoor Property
Building Ordinance Law

DavidA7 (California)
Posts: 179

Posted:

Cont:

Building Ordinance Law (Loss to undamged property, Demolition costs, Increased cost of construction)
Account Receivable

Employee Dishonesty (Crime / Fidelity Bond)
Retention (Deductible)

Gernal Liability
Bodily injury and property damage
Guest Medical Payments
Hired and Non-owned Auto
PErsonal and advertising Injury

Directors and Officers Liability

I'm being told this is a WALLS in policy

Walls in coverage is for the structure and includes everything within the unit, i.e., carpet, wall coverings, appliances, fixtures, etc., not including personal contents. Bare walls policy would be structure only and would not include any carpeting, flooring, wall coverings, appliances and fixtures.

Price is $180 less than our current Allstate Policy.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Do your documents require earthquake or flood insurance?

DavidA7 (California)
Posts: 179

Posted:

Tim - no they don't.

Just an FYI: EQ insurance costs about 16K for our 8 unit complex. Our collections for entire HOA operations is around 35K. There is no way we are going to be able to get agreement that $166 more per month for each unit is worth it and we are already high costs without ammenities. Probably except for 1 unit everyone is underwater and would prefer to walk away if something happened.
Also, EQ has I think a 15 or 25% deductible with a cap on what is offered. In CA its almost not worth it.

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