DavidA7 (California)
Posts: 179
Posts: 179
Posted:
Our HOA changed insurance companies this year from Allstate to Farmers. The new policy has a walls-in coverage whereas our old insurance did not. The new insurance is actually less expensive then the old insurance. Now I think our CC&R's conflict with the new insurance. Here is why:
Per the review of our CC&R's and our Master Policy the insurance agent indicated the following:
I have reviewed the Associations's governing documents yet again. It is vague to say the least in that one section states that "Restoration and repair of the damage to the interior of any individual Unit shall be made by and at the individual expense of the Owner of said Unit and in the event of the determination to rebuild such partial or total destruction, the same shall be completed as promptly as practicable and in a lawful and workable manner."
On the other hand, in the "Insurance" section of the CC&R's, it states "A master of blanket policy of fire insurance for one hundred percent (100%) of current replacement cost of all of the improvements within the Project shall be purchased by the Board and shall be maintained in effect at all times. Te form, content, and term of the policy and its endorsements and the issuing company must be satisfactory to all institutional Mortgagees."
then in reply to my question forget about what the CC&R's state what does our Master Policy cover he responded if a water line was to break inside a unit.
His Reply:
Since the HOAâs Master Policy is a âwalls inâ coverage, it will provide coverage for the following (in response to your questions/concerns):
1. If there is a âsudden and accidentalâ water pipe burst, the insurance will pay for the replacing of the pipe , the drywalls, the woodflooring or any other improvements the owner has made which was damaged at the time of the loss. It will not, however, pay for the replacing of the drywall where the pipe burst (meaning if the plumber or contractor had to tear the drywall to get to the pipe).
2. If a water heater breaks, this is an individual ownerâs responsibility.
3. If the water heater was not individually owned, then the master policy would provide coverage through our âboiler and machineryâ coverage.
MY QUESTION:
OK having seen the insurance agent replies and what our CC&R's state which I think are now in conflict with our insurance policy do we have to get our CC&R's modified to clarify what is and isn't covered?
Per the review of our CC&R's and our Master Policy the insurance agent indicated the following:
I have reviewed the Associations's governing documents yet again. It is vague to say the least in that one section states that "Restoration and repair of the damage to the interior of any individual Unit shall be made by and at the individual expense of the Owner of said Unit and in the event of the determination to rebuild such partial or total destruction, the same shall be completed as promptly as practicable and in a lawful and workable manner."
On the other hand, in the "Insurance" section of the CC&R's, it states "A master of blanket policy of fire insurance for one hundred percent (100%) of current replacement cost of all of the improvements within the Project shall be purchased by the Board and shall be maintained in effect at all times. Te form, content, and term of the policy and its endorsements and the issuing company must be satisfactory to all institutional Mortgagees."
then in reply to my question forget about what the CC&R's state what does our Master Policy cover he responded if a water line was to break inside a unit.
His Reply:
Since the HOAâs Master Policy is a âwalls inâ coverage, it will provide coverage for the following (in response to your questions/concerns):
1. If there is a âsudden and accidentalâ water pipe burst, the insurance will pay for the replacing of the pipe , the drywalls, the woodflooring or any other improvements the owner has made which was damaged at the time of the loss. It will not, however, pay for the replacing of the drywall where the pipe burst (meaning if the plumber or contractor had to tear the drywall to get to the pipe).
2. If a water heater breaks, this is an individual ownerâs responsibility.
3. If the water heater was not individually owned, then the master policy would provide coverage through our âboiler and machineryâ coverage.
MY QUESTION:
OK having seen the insurance agent replies and what our CC&R's state which I think are now in conflict with our insurance policy do we have to get our CC&R's modified to clarify what is and isn't covered?