To the Insurance Mockers . . .

[BlueTiki]

I need your guidance. It's for an HOA client renewing insurance to replace individual units damaged by fire or "other hazard".

Are the following terms salient, today?

• All in Form – Covers the building and everything attached to the walls & floors in the interior including betterments & improvements (upgrades or alterations) – Does not include the owner’s personal property.

• Single Entity Form – Will rebuild the unit back to the original specifications, excluding coverage for betterments & improvements (upgrades or alterations).

• Bare Wall Form – Typically covers just the common elements (structures, electrical, insulation, and plumbing). May also cover the drywall and one coat of paint. Everything else would be excluded and needs to be insured under a unit owner’s personal insurance policy.

• Modified Bare Wall Form – Rebuilds unit back to the original specifications, but excludes coverage for floor/wall coverings, betterments & improvements (upgrades or alterations).

[Cracker]

This link may be helpful, Tiki. It explains the best kind of insurance based on the age of the complex:

https://webapp.dpor.state.va.us/articles...s_resp.htm

And this one: http://www.mynewmarkets.com/articles/962...commitment

You need to check your specific state's statutes: http://law.onecle.com/arizona/property/33-1253.html

[WolfHouse]

Speaking of insurance....Aflac named the replacement for Gilbert Godfried
today after firing him for making a joke about the Japanese tsunami. Like
hello......you fire a guy whose entire career has been making jokes?

[ramseycat]

Sorry this insurance guru is school only in auto, medical, and injury insurance. Don't know much about home owners policies except that I have one.

[IMaDick]

I won't buy insurance that doesn't cover full replacement, it's impractical.

The only exclusion should be improvements made after the policy date, and then only if the policy has not been upgraded to include them.

It should also cover any incidentals on the outside, like a vehicle that is burned if the fire causes it to be left, green houses and even trees.

The only thing I can say is if your client wants full replacement then a photo inventory should be taken and everything they want included should be disclosed to the insurance company.

[BlueTiki]

Thanks all!

They went with "Single Entity" Form coverage.

This HOA has an 8 acre footprint, 150 units and was built in 1964.

The CC&Rs (the "Declaration") included this phrase: " . . . (rebuild/rapair) to the same condition as formerly."

Insurance agent claimed "Bare Wall" coverage satisfies the Declaration's and the State's stautory insurance requirement.

Many owners believed "All In" was the intent of the document.

"Single Entity Form" returns the unit to the condition of the unit as originally surrendered by the developer (in 1964) and exceeds most lender's requirements for a Condiminium Rider.

Thanks for all of your input. And yes, I DID learn something very useful from your responses.

Mock - my source for CE credits and professional development!