SEA RANCH CLUB…

Holidays are over and  SRC meetings will resume on Wed. Jan 7th…9 am in the Ocean Room… with the second meeting to see if we have the necessary votes to amend the bylaws and adjust the new mandatory 1 year terms the state threw at us if we do not usurp them …by having “staggered” terms…

And this one should be discussed…

‘Law will require proof of interior-structure insurance

for condos

By FALLAN PATTERSON |Forum Publishing Group

January 1, 2009

Condo owners asking themselves whether they have the mandatory insurance to protect the interior of their units aren’t alone. Starting Jan. 1, every condo unit owner will be required to have interior structure coverage, also called an HO-6 policy. And a new law has given associations the power to enforce it.’

http://www.sun-sentinel.com/community/news/fort_lauderdale/sfl-flhrbinsurance0101hrbjan01,0,7818545.story

The regular meeting of the Executive Areas Association Board should follow…on the horizon for 2009…the cabanas…gas grills…and ongoing small and large projects…

Building B…now has some  new “streamlined” services…for the new year…per the mailers we all received…a booklet for maintenance payments…with a variety of ways to pay…leaving the building’s office…out of the process…. pest control will take a step into the future with forgoing individual unit monthly visits…killing the little critters from the outside …saving on personnel time..and upping the reliability of the treatment…fire alarm is finally at the end…despite the “hoops” the management had to jump through and the uninvited”menace” she endured for trying to get it completed…along with all this…Wi-Fi is in the common areas…and extends to a point outside…garage work is ongoing…..and the change of light bulbs and other cost cutting energy projects…have made this writer and others say many thanks to the Board of Building B for the 1st rate choice of our new Manager Brenda Callahan!….

more to come….

Tags: insurance, Sea Ranch Club, Updates
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WE MADE THE LEAP…

Finally after many months…a decision was made unanimously by the SRC Board yesterday at a special meeting in the Ocean Room at 1 pm…attended by a handful of residents…

Parting ways with AON was something many residents have wanted for a while now…especially after a few board members took it upon themselves to look for alternatives…

But it was a couple of our managers that brought us into contact with our new agency…Smith Watson Parker…(see SRC category for posts on SWP) and for that …we should make sure they are acknowledged and appreciated….Jane the Manager of building A told us first of this most insistent agent…and what he had to offer….as she gave us the heads up for his first visit many months ago….and Lorenzo …back then the manager of building C who carried the ball to the board members of building C for a touchdown…after a brief fumble in-between ….when AON…came back and those who seemed loyal to our longtime agent ..appeared unwilling to part ways….that is until we were hit with the news that we would not be eligible to move out of Citizens as expected due to not replacing the 200 catwalk exit doors in buildings A & C…OUCH!….along with some board members and managers having difficulties with the new agent from AON newly assigned to represent us as our longtime Rep. moved up the corporate ladder…HMMMM…

A few questions were asked about Citizens VS QBE …. the state of Citizens….their financial viability amid all the recent news reports..and the account from one board member that AON sent all of the board members an e-mail warning of the problem of staying with Citizens…as we switch agencies…

John Nordinger…the Smith Watson Parker agent explained…we have no choice but to stay in Citizens due to the above situation…( building B will move into QBE for windstorm ASAP)…but that as of tomorrow…we should have new Citizens coverage that will save us over $200 thousand dollars…along with a 5% deductible VS the current 10% and additional savings for “all other winds” coverage of lowering the deductible from $8 million to $3 thousand…along with general liability savings from AAA rated…admitted carrier Chubb of $80 thousand…

He explained Citizens and QBE…and why we would want to move from one to the other…it has to do with assessments…that come from all Citizens customers in the case of a large storm payout…which would be 45% of our premium…for anything that happens within the state of Florida….being in QBE takes that assessment out of the equation….due to a deal QBE has with the state …an exemption due to QBE doing so much business in Florida….

This writer asked about QBE and their history of paying claims…in the last large storm…after reading articles of court cases against them….

John replied they paid out their claims well…and that behind the headlines…the court cases and mock trials…ended in settlements in QBE ‘s favor…due to over-inflated claims…that were knocked down to the actual amount the claimants were due…

A rated QBE paid out $250 million in claims…has $750 million in assets…has tightened its guidelines and standards…thus having less customers…..

The board made some call to neighboring condos…and were happy to report the response was positive for both the new insurance company and our new agent….

The vote was taken…and we are now with Smith Watson Parker Insurance with John Nordinger as our SRC agent….

for more info check with your board members…or managers…

On a lighter note…after hearing that the new policy would be on the desk at Citizens on Wed. and would be stamped assuring our contract…..this writer asked John if he also did cable TV…referring to the still MIA Comcast contract….for SRC….a laugh came from all….

more to come

Tags: insurance, Sea Ranch Club
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SRC Full Board Meeting..9/10/08…9 am…Ocean Room…

Minutes of 7/22/08 were approved…

Pneumatic Restoration bill which exceeded the amount allowed without a full Board vote…for the Building A garage…approved…

New Managers to be Assist. Treasurers …approved

New …Building B Manager Brenda Callahan…

New…..Building C Manager Jim Lanz…will be on the job….9/29/08

Pool Rules Change… approved….with 1 Board member dissenting… the new rules adhering to Fl. State Law…which does not allow age discrimination …thus the change…. after a resident with the knowledge of the state law…and a child under the SRC pool posted age requirements…brought it to the Managers and Board last week …with the real possibility of legal avenues being pursued if SRC did not follow the state law…made this decision…after a concurrence from the SRC attorney….23 pages…of concurrence…

The pool signs will be replaced …all are free to enter the pool…pampers anyone?….condo commandos…stand down!….

The dissenting Board member did discuss the possibility of a kiddie pool…but that would require a vote of 2/3 of the owners due to a change in the common elements…the Board declined the idea..

Meeting adjourned…

Areas Association Board Committee Meeting…right afterwards…

Jonathan …Landscape Foreman…working around the weather delays…with fertilizing..plantings…spraying…and catching up with machine maintenance…taking care of the dog walk…re-sodding…

Broward County Naturescapes Rep. was to come and walk the grounds with some Board members and Jonathan…

C tennis courts was still on hold…weather…workman’s illness etc…

Still awaiting bids on cabana plumbing…week ????

A garage is complete …Pneumatic Restoration…C to be scheduled next…

Bids ongoing for Diamond Bright…

A resident did ask to look into an alternative to Chlorine…an Oxygenation system…http://www.aquasafe-uk.com/ecosmart.html

Building A pool heater is installed….Building A  pool pump still waiting…

A & C pools were found to have a potential emergency problem that could result in the C pool draining out in the garage!…

The Board passed the amount …which was over the limit…to do without bids…due to the emergency circumstances…and discussed the need to raise thew cost allowance for approval by the committee in the future…the amounts have not been adjusted for inflation since 2000…

New signs will also be ordered for the pool and elsewhere…to conform with state law…etc…

B pool framing has been “put to bed”…after 2 letters were read from a construction and a pool company…reiterating the need to keep the casing intact…the problems that could arise from penetrating it to see if there is a problem…and their opinion that the steel is not causing any adverse problems to the pool’s integrity or rust problems…

This writer received the following response from Smith Watson Insurance …9/9/08

Hello Barbara,

You had asked for a copy of the chart showing our Insurance proposal…I didn’t forget…I was respectfully waiting for the Boards decision before sending this out…Nancy sent an email today of the Boards decision to stay with current agency.

Thank you for your time and support…any questions please don’t hesitate to call.

John

John Nordinger
VP Commercial Lines Agent
Smith Watson Parker Insurance

SEA RANCH CLUB CONDOMINIUM ASSN
DEDUCTIBLE COMPARISON

Building Building Current Proposed Current Deductible Proposed Deductible
Address Value Hurricane Deductible Hurricane Deductible All other Wind All other Wind
4900 N Ocean Blvd $100,537,900 $10,053,790 $5,110,618 $3,016,137 $1,000
5000 N Ocean Blvd $ 66,023,799 $6,602,379 $3,016,137 $1,980,713 $1,000
5100 N Ocean Blvd $102,212,352 $10,053,790 $5,026,895 $3,066,370 $1,000
Total $268,774,051 $26,709,959 $13,153,650 $8,063,220 $3,000

SEA RANCH CLUB CONDOMINIUM ASSN
PREMIUM COMPARISON

Policy Type Current Premium Proposed Premium
Windstorm/Property $1,907,043 $1,676,168
Liability $143,373 $65,835
Total $2,050,416 $1,742,003

Advantages of moving to Smith Watson Parker
1) Total Hurricane Deductible Savings of $13,556,309
2) Hurricane Deductible with SWP applies on a calendar year basis vs per occurrence
3) Total All other Wind Deductible Savings of $8,060,220
4) Premium Savings of $308,419
5) No Fee for Risk Management Services
6) SWP Flood Rebate of 10% = $7681 savings
7) SWP is a Preferred Agent with QBE Insurance Co

The SRC Board has decided to stay with our present Insurance Co. and QBE…

BCbythesea…Sea Ranch Club category…previous posts of the process….and concern of QBE…and new Condo Insurance laws….

more to come….

Tags: insurance, Sea Ranch Club
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6/18/08……

What follows is an overview of the presentation made to a larger group than normal for a Wed. 9 am meeting in the Ocean Room…

Included will be links…for agents….companies….. articles….information….and definitions….

Readers from Sea Ranch or other Condos …contact BCbythesea…and I will forward the email received from Willis of Florida of the power point presentation…..

The validity or non- validity found in this new insurance offering……will be left to you to decide….

This was the second visit for Brown Insurance Services Representative….Rob Tallent,CIC…Account Executive/Risk Manager…and M. Craig Brown, AIP…Account Executive…www.browninsuranceservices.net

Previous Sea Ranch Club post in SRC category…. provides overview from their 1st presentation….

This visit was made after new information was provided to them by the Sea Ranch Club Comptroller through a Board member …..

A new program became available to offer to us initially …with 100 condos currently in this group plan….only to become unavailable until November/December….with a moratorium due to the ire of the insurance industry…who feel threatened….Willis of Florida…is in the process of hiring a law firm that will include a former Insurance Commissioner…..

The power point presentation lasted approx. 45 minutes and was made by Stephen van Wert, author of this new program…. Account Executive … Willis of Florida…www.willis.com

Willis is a global Insurance broker…est. 1828…15,800 colleagues in 324 offices…110 countries…a public company…listed on NYSE…(WSH)…annual revenues over $2.4 billion….transact over $30 billion in insurance premium…Willis of Fl. is headquartered in Tampa…..125 employees ….Willis represents big name companies such as 3M/Merrill Lynch/Toyota/Sony/Nike..

NOTE: Mr van Wert was not allowed to say the actual name of of the state program…Citizens….so from this point on …it will be referred to by initials…CPI…(Citizens Property Insurance)...www.citizensfla.com

The program being offered… “Condo Elite”…high end condos…

a “group” policy…not a “pool” policy…CIP is a “pool” policy….

combines all Associations under one property policy….. not all located in the same area…

Advantages…Economies of scale and group purchasing power…premium savings… the example used … Sam’s Club…buying in bulk….

More leverage with insurers…superior coverages….higher limits…placed with “A” rated companies…

The alternatives are now available due to recent legislative changes …statues…718.111….www.stateofflorida.com

These alternatives allow 3 or more condos to group together to purchase wind coverage…

in order to comply with this law…

Limit must equal the Probable Maximum Loss (PML) of a 250-year windstorm event….www.rms.com

…..www.myflorida.com

and must be conducted on the Catastrophe Modeling Software approved by the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM)…www.sbafl.com

Mr van Wert offered to do a Cat model for Sea Ranch Club buildings…

There is no need to have full wind coverage for all locations…. wind will not completely take out all these properties… takes the “fat’ out of the insurance premiums… some buildings will have major damage…others minor… real losses from a hurricane…the storm surge...www.cunninghamlindsay.com

The program includes flood coverage in excess of the National Flood Ins. Program…(NFIP)..www.fema.gov

Condos share one master limit per event….for each event…no maximum limit for the year…no matter how close together..

A scenario using SRC Bldg.A was used to show what would happen in the event of hurricane damage and the claim process….

The astounding difference …… the current CIP with each condo owner being assessed $40,443 dollars…and $1.84 ….(not a misprint)..with the new program CondoGuard…..

A comparison between programs was presented side by side with CIP …not rated…VS…. Lexington Ins….A+XV…..rated……. www.lexingtoninsurance.com

Lexington will also match the NFIP and offer an adjuster ….Vericlaim,Inc…www.vericlaiminc.com that covers both wind/flood…compared to present system of separate adjusters……also offers ‘building ordinance and law’ currently not provided…which covers the increased cost of construction/demolition/value of undamaged...www.coverageglossary.com.……...www.imakenews.com

An eye-opener about the deficits of CIP was revealed……. from the Florida Association of Insurance Agents…excerpts from a White Paper explaining the impact to policy owners ...www.faia.com……..

Including the market update from Florida Chief Financial Officer …Alex Sink who wrote an article …including this statement…in the Tampa Tribune …Feb. 20,2008…www.tampatrib.com

“Volatility in the financial markets already hampered Florida’s ability to raise capital in the bond markets, I am very concerned about our ability to sell bonds of this magnitude at a reasonable price and I am not alone. The Cat Fund’s Advisory Council last month expressed “concern” about the “realistic potential to adequately fund” our increased insurance risk”….

Bottom Line…By purchasing Insurance as a group, the Associations are shifting their risk of severe assessments from the reasonably expected losses…emanating from a “normal” hurricane, such as building ordinance,demand surge,storm surge/ flood, property in the open, potential lack of timely claims payments, etc…to the unlikely event…a hurricane loss exceeding the 250-year PML…

Downside….It is possible that the damages to all properties can exceed the blanket limit as a whole….though extremely unlikely…in such a case, each property suffering a loss gets a pro-rata share of the claims payments….

Disadvantages…of CondoGuard …possibility that the 250-year wind PML limit can be breached….if wind loss approaches the Groups limit, final claims payments will not be settled until all claims are adjusted…. currently, a surplus lines placement does not have Guaranty Fund Protection….coverage enhancements are limited to available sublimits….

Advantages …of CondoGuard…. large premium savings of 30% estimated…no mandatory annual appraisals….no need to purchase AOP …(all other perils)/DIC…(difference in conditions) wrap property policy….NFIP claims payments rrode the windstorm deductable….

Again…for the full power point presentation…send a request by comments below……or to [email protected]

Final notes….

The comparison was made with CPI…and not with QBE…..www.qbe.com

SRC is in the process of switching out of CPI for windstorm by the 1st of the year…with a lower deductible….either 3% or 5%…..

The savings would need to be recalculated…. along with commissions…..

There is still a question of mortgage companies approving sales with this type of coverage….

They are a subsidiary of AIG….www.aig.com

Research should be done on previous payouts of claims…for both companies…

more to come………

Tags: insurance, Sea Ranch Club
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