There are thousands of Homeowners Associations (HOAs) and condominium associations all over Florida. The size and responsibilities of these groups may vary from community to community, but most of them maintain some sort of insurance policy to protect their assets.
Due to some of the extreme weather conditions like hurricanes or flooding in parts of the state, insurance policies can be extremely important for HOAs and condominium associations. These groups may pay significant premiums for the following forms of protection:
- Damage to property – This type of policy would serve to protect utilities, property and common areas that are shared by the HOA community or the condo association. In the event of a fire, flood, hurricane, or sinkhole collapse, a property damage policy would pay for the cost of repairs which can easily run into the millions of dollars. dollars.
- Criminal damage – This policy could protect an HOA or condo association from graffiti, vandalism or arson, but certain criminal policies can also be used to protect the association from fiduciary mismanagement by a member of the board of directors or other officer. These policies are sometimes called loyalty insurance.
- Liability claims – A person who is injured by a slip and fall accident, faulty equipment or violent crime on the property of this HOA or the condo association can sue for civil liability. This type of insurance policy can help cover the cost of any settlement in such cases.
While insurance for an HOA or condo association can be expensive, it is generally considered a worthwhile investment. However, many boards of directors of these associations are shocked when insurance companies fail to provide adequate compensation after filing a claim. Some of the common issues that HOAs and condo associations encounter when filing an insurance claim include:
- Deferred payment – Florida Statute § 627.70131 specifically states that an "insurer shall pay or deny such claim or any part of the claim" within 90 days of receipt of notice of a "claim of claim". Original, reopened, or supplemental home insurance from a policyholder "but allows insurance companies to have some leeway if" the default is caused by factors unrelated to the insurer & # 39; s will.
- Refusal of complaint – There can be many reasons for a claim to be denied including, but not limited to, lack of evidence, certain accidents not covered by certain policies, or policies canceled because premiums weren't included. # 39; were not paid on time.
- Insufficient settlement amount – The insurance company may understate a claim and offer an amount that is significantly lower than the actual cost of the damage.
- Negligent defense provided in liability claims – In some general liability claims, an insurance company could leave a policyholder stuck with a settlement that exceeds policy limits.
Insurance companies are investigating claims to limit their own payments, finding the reasons why claims fall into exclusions that are not covered by some policies. An HOA or a condominium association doesn't have to just accept these types of results. An experienced lawyer can negotiate to seek a more favorable collection or sue the insurance company if they fail to provide a satisfactory amount.