Master policy problem

Started by SandraB2 • 10 replies • 1792 views

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SandraB2 (South Carolina)
Posts: 24

Posted:

We would like to change our insurance from an all in master policy to requiring home owners to insure their units. We are a PUD. Since the home owner completly owns his unit and lot could the HOA only insure the common areas?

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

PUD?

MicheleD (Kentucky)
Posts: 4,491

Posted:

Are you saying these are single, detached homes on their own lots?

I've got to say, I've never heard of an HOA insuring everyone's home/lot.

But I may be misreading or misunderinterperating what type of housing is in your development.

(yes, I know that is not a real word.)

MaryA1 (Arizona)
Posts: 7,043

Posted:

PUD = planned unit development; same as a planned community (single family homes)

Like Michele, I've never heard of an HOA insuring individual homes. Only condo assn's carry ins to cover certain common elements, and perhaps limited common elements, of each unit. In your type development the HOA should only be insuring the common areas and any other fixed assets such as swimming pool, clubhouse, tennis court, etc. Hope you're not still using the same ins. agent who recommended this type policy!

SandraB2 (South Carolina)
Posts: 24

Posted:

We are duplexes and we own our lots. We have a master ins. policy that covers the units(original specs). Homeowners need to have insurance for their contents, any betterments to the unit and liability. The deductable is a steep 5,000. This is all incorporated into our docs. so to change it would require ammendment changes. Alot of homeowners would like to insure their own units and choose their deductable. Yes this is an unusual set up.We also provide normal Exterior maintenance and repairs.

EllenS1 (Florida)
Posts: 1,148

Posted:

Sandra,

This sound too weird. Why would they require insurance for contents since it will not affect other owners? An amendment would be the best case but if not I would certainly contact another isurance company to see what it would cost and with a lower deductible.

SandraB2 (South Carolina)
Posts: 24

Posted:

Home owners are not required to insure their contents it is just not covered by the master policy. Right now the biggest problem is we have just gotten a couple foreclosures and alot of home owners are getting behind on their regime. We also provide landscaping services for the whole development. Everything is incorporated in our docs so removing any of these services will require ammendments. We are waiting for bids to come in so we can reduce the insurance premium changing the deductable is not an option with the master policy. We are meeting with a new attorny Mon. he says they will go over our docs. and help us make changes that are needed. Bad thing though the developer has 6 units left. As long as he owns 1 unit he has to approve the ammendment

DonnaS (Tennessee)
Posts: 5,671

Posted:

Sandra,

I know what your situation is because I also have a unit built under the same way.

Because these are attached villa units, they share a common center wall and roof. Your association is responsible for the entire insurance coverage now?
Therefore, the HOA carries a Master Policy for these elements, with the H.O carring contents insurance only?

My HOA carries a Master Policy which only insures the Common Elements, that is the shared roof, sub roofing and the common wall between the unit. Owners are responsible for all replacement of the unit itself, inside and out which has an owner paid policy. Every unit MUST have copies of the policy in the HOAs posession. If an owner fails to show proof of coverage, the HOA buys a policy and bills the owner.

But the documents MUST clearly state what is considered common elements and what is owner responsibility. We got into a holy war because of a failed skylight. On the roof so you would think it was part of the roof--association responsibility. But, owners are responsible for all window replacement. Okay, is it roof structure or a window? So every item must be spelled out to the letter.

SueB9 (Alaska)
Posts: 22

Posted:

My PUD has a master policy which includes D&O, Liability, Fidelity, and structural insurance including common areas. Homeowners pay for this insurance as a part of their assessments, but are also responsible for procuring individual homeowners insurance policy to cover their own unit from the sheetrock inward and it's content.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Your declaration/CC&Rs may specify what type of insurance you have to carry, and it will be tied to the structure of the buildings and who is assigned maintenance responsibility for what pieces.

If this is the case, then you have to do what your CC&Rs say. If they say nothing about it, then talk to your community's insurance agent before you make any changes. The last thing you want is double insuring some pieces and under insuring others.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Argh... this is an old thread that got re-activated. If someone wants to discuss this, it's probably better to start a new thread since the info in this one may be out of date.

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