The Villages Association Insurance Coverage

Transcription

1 The Villages Association Insurance Coverage What property is covered by the Villages Master Policy? The Villages Association currently provides coverage for damage to condominium real property. This includes the exterior building structure as well as interior walls, plumbing contained within the walls or foundation, utility services, floor coverings, window coverings, cabinets, permanently attached fixtures and built-in appliances. In short, all REAL property is currently covered under the Master Policy and it is covered at replacement cost. What causes of real property damage are insured under the Master Policy? The Master Policy provides coverage that insures against damage from fire, flood, wind, smoke, vandalism and earthquake, among others. The failure of built-in appliances and other owner real property that is due to normal wear and tear is not insurable. What coverage limits are provided under the Master Policy? Currently the Master Policy provides a coverage limit of approximately $528,000,000 for all real property within the Villages. This does not apply to earthquake and flood, which have limits of $40,000,000 per year. What is the cost exposure for villa owners? There is a separate deductible that applies to earthquake and flood damage as opposed to other causes of damage such as fire, wind or water from non-flood conditions. These deductibles are as follows: 1) $5,000 per occurrence for above causes of loss except earthquake and flood this is responsibility of villa owner if damage was caused by something under their ownership or their actions such as ruptured washing machine hose, broken water line to refrigerator, toilet failure, water softener failure, water heater failure, dishwasher failure, water fixture and vanity sink failure, water filtration system failure, owner patio irrigation system failure, exterior door seal failure, exterior window seal failure, roof skylight or sun-tunnel failure, AC approved (or not approved) plumbing alteration or appliance installation, kitchen fire, etc.; 2) 10% of building replacement value if damage is caused by earthquake; 3) $10,000,000 (SIR), self insurance retention, for earthquake damage in excess of the first $2,000,000; this would be recovered from all villa owners on an equal basis 4) $250,000 per occurrence if damage is caused by flood.

2 What types of coverage am I personally responsible for? Villa (condo) owners must maintain property and liability coverage (commonly referred to as a HO6 policy) as follows: 1) General liability coverage in an amount of not less than $300,000; 2) Property damage insurance covering contents and personal property within the villa in an amount deemed appropriate by the owner; 3) Loss assessment coverage in an amount equal to or greater than the amount of the deductible under the hazard insurance policy carried by the Association, currently $5,000. Renters must maintain property and liability coverage (commonly referred to as a HO4 policy) as follows: 1) General liability coverage in an amount of not less than $300,000; 2) Contents insurance in an amount deemed appropriate by the renter. What is the cost of my real property coverage and how is it paid? The current cost of your real property coverage provided under the Master Policy is approximately equal to $26.00/month per 1,000 AFA. This rate is far less than you can obtain from your personal insurance agent because the Villages is buying coverage in bulk for the entire community. The premium cost is included in your monthly, district operating assessment. What do I do when damage has been sustained? Immediately after discovering that your villa (condo) has sustained damage, you should contact the Facilities Maintenance Services at or after hours the Public Safety at This is necessary so that they can stop the cause of the damage or determine if it is necessary to obtain help to prevent the damage from spreading. Additionally, they will record the circumstances of the damage and take photographs that can be used to process any appropriate insurance claims. You will also need to contact your insurance company if any of your personal contents are involved keep that number handy. Insurance Certificates; Proof of Insurance Insurance certificates and proof of insurance can be obtained at any time from the Villages insurance broker, Hays Companies, by calling Certificates of insurance are also mailed every year to all mortgage lenders who have loans against Villages condo properties. What shall I do for advice or guidance? It is highly recommended that you review your insurance needs with your personal insurance agent. There is a Coverage Summary that is attached. Additional Insurance Questions?? For more information regarding the Villages Insurance coverage you may contact the Senior Resource Service Center (SRS) located in the Cribari Center across from the Post Office. Office hours for SRS are Monday, Wednesday and Friday 10:00 AM to Noon. SRS volunteers, including professional insurance experts, can be reached at for free and confidential advice. March 1, 2015

3 THE VILLAGES GOLF AND COUNTRY CLUB Insurance Disclosure California Civil Code Section 1365 requires that the Association prepare and distribute to all of its Members a summary of the Association s Property, General Liability, Automobile, Umbrella, Fidelity, and Directors & Officers insurance policies. The Association purchases the following types of insurance. Our insurance provider, Hays Companies of Oregon, has provided the following data to insure we meet the requirements of California Civil Code 1365(f): I. PROPERTY Insurance that covers direct physical loss to property; Replacement Cost Valuation. Covers all common areas and condominium units including anything permanently attached to the exterior and interior of the units. Limits: Buildings $527,912,866 Business Income $500,000 Deductibles: $5,000 per Occurrence 72 hours Business Income Waiting Period II. GENERAL LIABILITY Pays on behalf of the Named Insured all sums which the insured is legally obligated to pay as damages because of bodily injury or property damage to third parties, including defense costs. Limits: General Aggregate $2,000,000 Each Occurrence $1,000,000 Products / Completed Operations Aggregate $2,000,000 Personal & Advertising Injury $1,000,000 Fire Damage Any One Fire $100,000 Medical Expense Any One Person $5,000 Deductible $0

4 Insurance Disclosure 2015 III. BUSINESS AUTO Limits: Pays on behalf of the Named Insured all sums which the insured is legally obligated to pay as damages because of bodily injury or property damage to third parties arising out of the ownership, maintenance or use of any auto, including defense costs. Each Accident Combined Single Limit for Bodily Injury & Property Damage $1,000,000 Each person Medical payments, Owned Autos Only $5,000 Deductibles: Auto Comprehensive $500 Auto Collision $1,000 IV. UMBRELLA LIABILITY Policy Number: PHUB Provides liability limits in excess of underlying General Liability, Automobile Liability, Employer s Liability and Directors & Officers Liability Limits: Each Occurrence $25,000,000 Products/Completed Operations Aggregate $25,000,000 General Aggregate $25,000,000 V. CRIME Coverage for employee theft of money, securities, or property caused by theft or forgery by any employee. Limit: Employee Dishonesty $ 250,000 Deductible: Each Loss $ 1,000 Page 2 of 4

5 Insurance Disclosure 2015 V. EXCESS CRIME / FIDELITY BOND Insurance Company: Travelers Casualty & Surety Company (first layer) Hiscox Insurance Company (second layer) Policy Number: & UC Policy Term: October 25, 2014 to March 1, 2016 Coverage for employee theft of money, securities, or property caused by theft or forgery by any employee. Limit: Employee Dishonesty $ 15,000,000 ERISA $500,000 Deductible: Employee Dishonesty $250,000 VI. FIDUCIARY LIABILITY Insurance Company: Travelers Casualty & Surety Company Policy Number: Policy Term: October 25, 2014 to March 1, 2016 Covers damage for wrongful acts involving breach of fiduciary duty as respects The Villages Golf & Country Club s Employee Benefit Plans. Limit: Annual Aggregate $1,000,000 Deductible: Each Claim $5,000 VII. Earthquake & Flood (including earthquake sprinkler leakage): Insurance Companies: Insurance Company of West, Landmark American Ins., QBE Specialty Policy Number: Various Limit of Liability: Primary Deductible: Page 3 of 4 Earthquake & Flood on Buildings, Business Property, Electronic Data Processing, Business Income / Extra Expense $2,000,000 Primary Layer Per Occurrence and Annual Aggregate $10,000,000 Self Insured Retention $28,000,000 Second & Third Layer Per Occurrence and Annual Aggregate 10% per Building as respects Earthquake

6 Insurance Disclosure % per Building as respects Flood VIII. DIRECTORS & OFFICERS LIABILITY Insurance Company: RSUI Indemnity Company Policy Number: NHP protects insured directors or officers against claims involving allegations of wrongful acts occurring while performing their respective duties. Limits: Annual Aggregate $3,000,000 Deductible: Each Claim $25,000 This document is a synopsis of coverage only; the individual Policies contain exclusions and / or limitations not shown here. It is not intended to replace, alter or extend the coverages afforded by an actual policy. Hays Companies is also available to assist you: To obtain proof of coverage certificates, please send your request to: FAX: Telephone: Your Hays Companies contacts are: Certificate Requests: General Requests: General Requests: McKenzie Swan Jennifer Webber Randy Hughes [email protected] [email protected] [email protected] Page 4 of 4