Do You Know Your Insurance Coverage?

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.