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NBCA Meeting…Ins. Info for SR Club

5/12/08

The North Beach civic organization had their meeting in Jarvis Hall…

(scoop on announcement…De-annexation…in scoop category)…

It was attended by approximately 30 residents…

An informational presentation on condo insurance was given by Jerry Bookman…

He was an insurance agent …and is currently a consultant with …Risk Management Consultants…

“Insurance is the law of large numbers.” exclaimed Mr Bookman….

Here are a few highlights…

Associations should have a line of credit with a bank….

at least a million….should be on hand….

A catastrophic occurrence will require immediate implementation of contractors…for dry out equipment etc…requiring immediate payouts…in a matter of 2-3 weeks…. that 1st million could be required…

Insurance initial payout will take 4- 5 months…

Banks love condos for line of credit clients…due to collateral ability to assess….no better credit risk…

a special assessment does not need to take place until the line is used…and then only for what amount is required…

All condos should require all contractors to supply them with a certificate of insurance to do any work on the premises…

a check can be made for the validity of the certificate at….www.fldfs.com/wcapps/contractor/logon.asp

BEWARE. OF……mold specialists….

DO NOT HAVE A MOLD SPECIALIST AT THE START OF DISASTER CLAIM!

These mold specialists act as if they are doing the condo a favor by inspecting from the get-go…in reality they provide the insurance companies the opportunity to use the mold report as a way to negate a large portion of the claim …possibly in the millions…

A contractor can find mold as they work…a mold report is not required…fight it…. if it is presented that way…since it will be used against you…

Have the mold inspection…last…after all repair work is done…along with the air quality testing in order to return to occupy the premises…

At that time……. whatever needs to be done to pass…… will be done without additional charge.

Mr Bookman advised…send away the first appraiser…and possibly the second…make this a practice…due to who the insurance companies will send…and from where…. it is your right to ask for another appraiser…by the time you get further down the line of appraisers…the insurance company will know you mean business…

Do not allow condo property to be used for a “staging area”…meaning any equipment used or not used ….. will be charged to the condo…. daily…include …a provision… that you will only be charged for what is used…

Self Insurance…not recommended…due to the lack of funds available in the short term for a catastrophic event…usually takes 5 years for there to be enough savings…

also…

what is the liability….is it jointly or separately?

Where are the self insured properties…all together in one area or spread out?

No catastrophic event…will save… that’s a given…

Catastrophic event….will lose…”a crap shoot!”….

Citizens Insurance…..politicians not being honest about their ability to cover a catastrophic payout…

The speaker advised BCbythesea…Sea Ranch Club…to check out present…longtime insurance provider QBE for lawsuits against them for non-payment from Wilma…

Another shocker…in the new changes ….comes this ….

right now the condo law says that individual unit air conditioners/ condo roof air conditioners… are the responsibility of the unit owners…

the change in January….individual air conditioners/condo roof air conditioners… will be the responsibility of the association…including maintenance and repairs! YIKES!

Appraisals will now be required by condos every 36 months…Citizens Insurance…every 18 months…

NOTE: BCbythesea…question…..

was the appraisal blunder for Sea Ranch Club…found…. due to the required appraisal by Citizens with the change in windstorm insurance companies?….

All condos ….should ask their agents to provide them with a certificate of insurance….errors and omissions… malpractice insurance…

Finally…a majority of the unit owners can opt out of the new legislation…which usurps any condo documents…if not opted out…

A reversal to opt back in …can be done ….at any time…. with the same majority vote…

Condos do not need the permission of mortgagees to opt out…

All condo boards….management… counsel…..should take the time to compare their documents with the new condo legislation and point out any changes to the owners…

to decide whether to adhere to the state or opt out…. to stay with the condo documents…

Any further inquiries…contact your condo board members…managers…and of course Google…

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