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Sean
Virtue, Regional Vice President Mack, Mack & Waltz Insurance
Published August 24, 2011
As
Irene and other storms will be approaching, there are a few fundamental
steps Associations can take to avoid any problems in case of a loss
(damage). At a minimum, the board should know who is insuring them, when
the policy expires (in case it happens during the storm) and how to submit
a claim. I recommend a thought-out Standard Operating Procedure
(SOP) to deal with the Storm. The Red Cross' motto is: 1) Get a Kit,
2) Make a plan and 3) Stay informed.
I have drawn up a list of suggestions in order to reduce their exposure to
potential liability.
1. An Association should KNOW
who is insuring them for Wind/Hail: A hard copy of the insurance policy
providing Wind coverage should be on-hand. If not on-site with a
board member, the Board should request a copy from their agent. Note:
There are different property insurance policy configurations that
could be confusing.
Request a precise inquiry with the agent for these documents: "PLEASE
PROVIDE US WITH A COPY OF OUR INSURANCE POLICY DECLARATION PAGES THAT
PROVIDES WIND/HAIL COVERAGE." At this point, it is the
responsibility of the Association Agent to figure out and send over the
correct policies.
2. KNOW when the policy
expires: If the Master Policy or part of it is expiring in 3-4 days,
the Association should stay in close contact with their agent and request
a written confirmation that coverage is bound. The Association
should also make sure their premium check (or down payment) has been
received by their agent in order to guarantee coverage during the storm.
3. UNDERSTAND Binding
Suspension if relevant: Shopping for Condo Assn Insurance during
hurricane season? A binding suspension is when an insurance company stops
accepting new policy applications for obvious reason: When a storms
trajectory is heading towards Florida, Insurance companies go on high
alert. As soon as it is confirmed that the storm may even touch Florida,
Binding is suspended. This means if you were looking to renew your
Property Insurance at the time a hurricane is on
its way or hitting, Insurance companies will not accept new business. The
Association may renew with the current insurance en force, but getting
quotes during this time is not possible.
4. UNDERSTAND how to submit a
claim. Every major agency has a Claims Department which they will
have to contact to start the claims process. The Association
should contact the insurance agent or agency and inquire about how to file
a claim (before the storm).
Some agencies require a faxed incident report and some will take a
claim by email. Bear in mind that after a storm, the agency will
probably be swamped with contacts from other customers who also suffered
damage. If they are insured with Citizens, the Association can call 1-866-411-2742 --
24/7 to submit a claim.
5. ASSIGN responsibilities for
after the storm. Different areas of responsibilities should be
assigned to volunteers who will implement their area of responsibility
detailed in the Action Plan.
6. IDENTIFY a volunteer to act
as a Claim Liaison on behalf of the community after the storm. The
Association should appoint a volunteer (board member, unit owner or
property manager) to be the point-of-contact for all claims-related
information. This person will receive many inquiries after the storm
from residents and will coordinate appointments with the insurance company
adjuster and contractors for repairs. There may be confusion after a
loss; multiple people dealing with a single issue may distract rather than
help.
7. LIST who is currently living
in the community. An Association-wide master resident list should be
maintained and verified to determine if there are residents with special
needs (especially medical) and which units are empty. A master pet
list could also help animal owners in case animals get lost during the
storm.
8. PAY ATTENTION to Hurricane
Warnings: Keep informed by monitoring the news. A Hurricane Watch
means the storm is 48 hours away - Be ready to act. A Hurricane
Warning means it's less than 36 hours from hitting - Be ready to evacuate
if ordered by authorities.
9. POST HURRICANE CHECK LIST:
An action Plan should in place to secure the property and well -being of
residents, including several options depending on damage caused by the
storm (electricity & phones working or not). Identify a crisis
management center where residents can come to find out any information or
consult with the board. Include an Action List with a list of
pre-approved contractors/vendors who can assist with repair estimates and
damage remediation. In addition, a list and maps of local hospitals
and shelters is a pro active move for the community in case of medical
emergency or phone lines are down.
10. CONFIRM unit owners' personal property has been
removed from outdoor areas. A team of volunteers should survey the
community and ensure that all deck furniture and other items that could
damage the buildings or vehicles have been secured by unit owners. If
ordered to evacuate by authorities, a team of volunteers should help
authorities determine that all residents have departed (including pets).
Useful
Links:
BEFORE THE STORM: RED CROSS PRE-HURRICANE CHECKLIST:
http://www.redcross.org/www-files/Documents/pdf/Preparedness/checklists/Hurricane.pdf
AFTER THE STORM: RED CROSS POST-HURRICANE (SAME AS FLOOD) SUPPLIES
CHECKLIST:
http://www.redcross.org/www-files/Documents/pdf/Preparedness/checklists/Flood.pdf
AFTER THE STORM: HOMEOWNER/UNIT OWNER CHECKLIST:
http://www.flash.org/peril_inside.php?id=120
About
Sean Virtue
Sean
Virtue can be contacted at [email protected]
or 954-815-9377.
Sean Virtue, Regional VP at Mack, Mack & Waltz specializes in selling
Condo Association insurance (Master Policy) in Florida. Sean educates
Florida home owners, Condo Association Boards, CAMs and Industry vendors
by teaching classes and writing a blog focused on Condo Insurance news,
legislature and explanations: www.Condoinsuranceexplained.com
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