Kelly Corcoran’s article covering hurricane preparation for condo and homeowner associations was published on 6/30 in Law360. His article details how community associations must prepare for hurricane season by ensuring they’re governed by the appropriate chapter (either 718 or 720). These chapters provide the necessary insurance guidelines for both community bodies, and if a condo/homeowner association is not properly categorized under their specific chapter (718 for condo associations, 720 for homeowner associations), then coverage for property damage/loss will be severely hindered. Kelly also details other aspects of coverage for condo/homeowner associations to review.
“There are also several types of coverages to review, including property (all risk v. named perils), windstorm (loss caused by a windstorm, tropical storm, hurricane, etc.), and flood (loss caused by rising water),” writes Kelly. “Property policies cover the cost to repair, rebuild, or replace the property that suffered direct physical loss or damage caused by a covered cause of loss. Whether a cause of loss is covered depends on if the policy is an “all-risks” policy (all risks are covered unless excluded or limited) or a “named perils” policy (covers only listed perils, e.g., fire, hail, lightning, etc.). Most property policies do not include coverage for damage caused by a flood. In this instance, an owner must procure a separate policy covering flood damage.”
Throughout the article, Kelly stresses the importance of reviewing insurance coverages ahead of a major storm to prevent property loss from being a catastrophic event. With proper review and implementation, any loss during a major hurricane can be recouped.
To read the story in full, click here.