Many board members know they have insurance in place but do you know what it really insures? Some of the most common surprises about insurance coverage are:

- Your umbrella policy may not apply to claims under your Directors & Officers policy;

- An entire building that is vacant for 60 days or more may not have any coverage even for covered losses;

- Loss of business income is capped at 12 months but can be extended by an additional endorsement;

- Additional insured parties should be named in the generic whenever possible (like "association management company" versus "XYZ Property Management");

- Ground water intrusion will not generally be covered.

- You can obtain an endorsement that provides for “green” products to be used for any rebuilding;

- Without an endorsement, there is typically no coverage for claims associated with your association’s web page;

- If your policy contains mold coverage, the mold typically must be reported within 14 or 21 days of initial growth.

For a more thorough analysis or clarification of these coverage issues, contact one of our attorneys or your insurance agent.

Community E-ssentials, October 2009