Hi all,
As previously noted in this channel, our Insurance carrier Philadelphia has opted not to renew. Philadelphia covered us under a policy called a DIC policy; what exactly is that? Following is a brief definition:
"difference-in-conditions" (DIC) insurance
(1) An all risks property insurance policy that is purchased in addition to a commercial property policy to obtain coverage for perils not insured against in the commercial property policy (usually flood and earthquake)......Etc."
Philadelphia declined to renew our coverage due to "an increased frequency of water damage claims". Our coverage was picked up by Max Specialties. This change came with significant financial consequences.
In short, our premium has doubled to $600,000.00 for this coverage. This change was effective 1 January, 2010.
So, look to your Association financial statements to determine if this increase has put your budgeted Insurance line item into a monthly deficit; and take appropriate action as needed.
Dave Israel
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This is only one policy of our total coverage package, though a major one. Any calculations on the increase per unit? Please get back to us on a guesstimate.
ReplyDeleteAnother gift from First Priority...
ReplyDeleteHi Randall,
ReplyDeleteMarch 14, 2010 9:38 PM,
It really irks me a bit that this was never fully exposed when it happened; although when I first saw all those "water" claims, I new right away we were in for heavy weather.
Are there other changes in our 11 policies that we have not been told about?
All I see when carefully examining our monthly financial reports here in Greenbrier is an incredible shortfall in the Insurance line item; despite the fact that we increased it 15% over last year.
This entire Insurance empire presents an incredible learning curve that needs to be laid bare to our unit owners.
I have sent off a few questions to Andy Rosen at Seacrest and when I have collected up some research we will all be made a lot smarter.
Dave Israel
Depending on the size of the unit, this represents an average increase of $3.18 per unit per month.
ReplyDeleteWhat about the 2011 premium for this policy? Will there be a provider willing to assume the risk?
How can we effectively 'shop' for the lowest bid when we don't know what the cost is until AFTER we have contracted for the policy?
Dave, thanks for airing the problems 'dirty linen', and explaining same, now it can be washed and repaired.
ReplyDeleteHere's our sad story about this insurance premium increase.
ReplyDeleteIn January and February the building insurance premium payment was $ 5201.instead of $ 3945. planned in our budget. Our Treasurer investigated with Dan Gladstone who told him to wait a little while since sometime the insurers takes a larger amount of the premium at the beginning of the year and are readjusting later on.
After the March Delegate meeting where Plastridge Chuck Knudsen was present and inviting telephone enquiries, our Treasurer called him a few times without any return call from Mr. Knudsen. Finally Karin from Plastridge told him that she had found an error.
She said that an adjustment would be made for the month of April and that the premiums for the following months would be $ 4201. instead of the planned $ 3945. The error would negatively affect other buildings similar to ours in our Federation.
This represents an annual increase of $ 3064.
Questions:
Is this increase related to the Philadelphia , Max Specialties change over?
How come Dan Gladstone did not know of this increase when our Treasurer talked with him in February?
Is someone checking the books at UCO or do we blindly pay what Plastridge say?
How come the error ( $ 5201 instead of $ 3945 ) was not detected by the responsible for insurance at UCO or at Plastridge until a call was made by our Treasurer?
Good luck David.
Andre
David:
ReplyDeleteI believe I speak for the majority
of CV when I say that we are
blessed that you live here.
I am sure that now that you are
The President of Century Village
we will see a huge difference in
the way CV is operated. How come
GL never posted in the UCO Reporter
all the water problems in CV and
how it was going to affect all
unit owners for more maintenance
to pay for all damages.
David: You truly are a Blessing.