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Catmandale
USA
67 Posts |
 Posted - 03/12/2003 : 23:56:56
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Newt,
In response to your earlier post regarding window leakage to a condo unit:
Under the ISO HO6 05 01 there must be an opening created in the roof or wall by the direct force of wind or hail, through which the rain, snow, sleet, sand or dust enters the building.
The ISO master policy form (CP 00 17 04 02)has a Cause of Loss form (attached to the Declarations page)which sets forth the covered perils as well as exclusions and limitations.
The Big Red master policy form has a similar requirement of a covered peril created opening , while their HO6 has, I believe, lost that language.
My point is this...as an IA, we will encounter many different policy forms (not to mention company interpretations)and it can be perilous to assume we know what we know. It's best to get the applicable policy and read it.
You will find disparity in Coverage A, Dwelling extensions, Contents, Loss of Use. Some policies specifically state and offer the occupant insured a choice of either Additional Living Expenses or Fair Rental Value (Pru, I think). Other carriers only offer Fair Rental value to those portions of the home held for rental to others.
In some cases, the Association may not agree to present a claim, complicating (or simplifying)the coordination of benefits between the master and the unit owner policy.
When reading the Covenants, Conditions and Restrictions (CCR's), take care to read it completely, as the maintenance responsibilties may be different than the responsibilties assigned after destruction, as in a fire or other insured loss. They are usually covered in separate chapters of the CCR's.
Condo losses afford there own set of challenges, but if you follow the lead of Jim F and Clayton, and carefully research the loss before you and think it through, you'll do fine. The effort you exhibit here on CADO leaves me no doubt that you will do well.
Wasn't it Jim Lakes that said Cause, Coverage and Cost? At Big Red, we used a baseball diamond analogy to cover those points. You have to make it all the way around.
Again, sorry if I ramble...I think I'm now hooked on cold medicine.
Dale Strain |
"When we thought that we had all the answers,
suddenly all the questions changed."
Mario Benedetti (1920); Uruguayan writer.
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TomS
USA
32 Posts |
Posted - 06/12/2003 : 06:03:19
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Jim,
While handling about 150 HO-6 policies in N.C., I found that most carriers fall back to the Condo "docs" to resolve any coverage issues.
Also in N.C., they have ammendments to the Docs which are "Original Specs", "All-In" and "bare walls". These coverages indicate what the HO-A policy will pay for which I am sure you are aware each means exactly what it says, ie, O.I., is what was there when Condo was built or purchased. Bare-Walls, is built to the Sheet Rock, no finish, carpets, etc. All-In means that, when you get a "all-in" you move on down road and let the HO-A pay for all.
problem with HO-6 policies is coverages, and limits. In N.C., with a "Cane" $5,000.00 limits are gone with a 3rd floor Condo
F.Y.I., this was all n 1998-2001, things may have changed since then, cause we had no "canes" to see any new endorsements.
good threads!!!! |
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Todd_Summers
USA
69 Posts |
Posted - 06/12/2003 : 10:29:32
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Here is a "sticky" example. I handled a condo claim in Houston and the by-laws stated that the master policy covered all "un-finished, interior walls of the perimeter of the dwelling". Does drywall "finish" the room or is paint required to be "finished"? Does perimeter include interior walls that seperate rooms or only the walls that are adjacent to exterior walls? After much discussion with the vendors management and the carriers management, we determined that the paint was the finish and was not covered by the master policy, but the drywall of the outside perimeter walls were. We also determined that all interior walls that seperated rooms: framing, electrical, drywall and paint were covered under the condo-owners policy and not the master policy, because they are considered betterments and can be moved around (remodeled) by the condo owner. But on the perimeter walls (walls adjacent to the exterior walls) the master policy covered framing, electrical, insulation and drywall , while the condo- owners policy covered only the paint of these perimeter walls.
PS-The bylaws were like a book around 80 pages. |
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How To Handle The HO-6 Condo Unit Owners Claim
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