Open Letter Response by Ty Beba

Ms. Cohen, thank you for your detailed questions and your request for information on the coverage provided by Brown & Brown with the Insurance Policies in place for Century Village-West Palm Beach. We have been addressing these and other questions in insurance meetings over the past few weeks and I am available in the UCO office during office hours every day to answer any other questions. Please pardon the length of this response because I will intend to be thorough in the event that you are somehow unable to attend one of our meetings. I will address them in the same order as to maintain a level of consistency:

1. The Ordinance & Law coverage we added on to the American Coastal Property Insurance policy back in May of 2011 provided a coverage limit equal to 5% of the Insurable Limit of Each Building. It was not 2.5% as positioned by some other agents. As you suggest there are multiple options available to the each association from "no coverage" to "even higher coverage" limits. It’s just very difficult on a coverage summary page to share so many coverage, deductible, or premium options.

Example: A Building with 26 Units and a replacement cost of $1,677,483 would be covered for:

At 5% Coverage Limit: $ 83,874 in Total Coverage Limit for Demolition of Undamaged Portion of the Building AND for Increased Cost of Construction to make Code Upgrades as required by Ordinance & Law.

At 2.5 % Coverage Limit: $41,937 in Total Coverage Limit for Demolition of Undamaged Portion of the Building AND for Increased Cost of Construction to make Code Upgrades as required by Ordinance & Law.

While this coverage or the coverage limits are not mandated, it is important to consider all the additional expenses that a regular property insurance policy would not cover.

2. Actually, it is not relevant that there is currently policy for all associations to choose between a deducible of $2,500 or $5,000. If certain associations require the $2,500 deductible, we would simply issue one policy for any Associations choosing a $2,500 Deductible and another policy for All Associations choosing $5,000. The lower deductibles are just not available for all Associations and no Associations had a lower deducible last year due to claims in previous years.

Having too low of a deducible could result in minor claims being reported to the insurance company making it so that they refuse to renew the coverage in coming years, or increase the deductible option to disproportionate levels.

3. The Coverage Form that is part of your 2011 General Liability Policy through Harleysville Insurance Company has been made available to every association in their policy books. The coverage form is labeled as “CG-7347 Blanket Location Separate General Aggregate Limit”. We refer you to Item A. 4 and A.5 for the coverage language which states: “The limits shown in the Declarations for Each Occurrence, Damage to Premises Rented to You and Medical Expenses continue to apply. However, instead of being subject to the General Aggregate Limit shown in the Declarations, such limits will be subject to the separate General Aggregate Limit for that “insured location”. For purposes of this endorsement, “insured location” means any location indicated as such on the Declarations or any other premises owned or rented by you on which you are performing your ongoing operations”.

Then Pages 1 through 9 of Endorsement GU-7008 (Ed. 4-09) continue to list every Association we insure at the Village on a separate basis so that the separate limit can be designated to each association. It would be irresponsible for us to include 62 pages of our coverage forms specific for our clients on a website that is open access to everyone in the world who has Internet access. As I mentioned, the coverage forms I referenced are readily available in every Association’s Policy Book we distributed. A copy is also available at the UCO office, and one is in my possession if you’d like me to share with you in person.

4. The Umbrella Policy is what is known in our industry a “True Follow Form” policy. It literally extends coverage limits above the Liability policies with the same terms and conditions of the underlying policies. ITEM 5. on Page 2 of the Umbrella Policy requires that our General Liability policy the endorsement which we just mentioned earlier. ITEM 7. on Page 4 of our Umbrella Policy states that they will respond like our General Liability Policy as per the forms we have sent them. This is the same form we referred to on your 3rd question. Please see our response to your 3rd question regarding the posting of coverage forms on a public forum. They are part of the Insurance Books provided to all of our clients, with a copy available at the UCO office.

5. Equipment Breakdown coverage is a key coverage because it provides coverage to the Associations’ Electrical Panels. Common Area Heating & Air Conditioning Units and similar electrical and mechanical components of your building perils are not covered under the regular property insurance policy for certain perils. These perils can be losses arising from “Shorting”, “Electrical Arcing”, “Power Surges” and the like.

6. The question regarding Assessments to Unit Owners and their Homeowners Policies does not have a very easy answer. First, it is not known if every Unit owner has a Homeowners Policy in place. Second, it is not known what types of coverage limit or coverage trigger the homeowners’ policies provide even if there is one in place. Third, the loss assessment from the Association to a Unit Owner is not limited to the Association’s Wind Deductible. What if the Association has not purchased Ordinance & Law Coverage OR the limits of the Ordinance & Law option they purchased were not enough? Lastly, it is not known how long it would take to collect Assessments from Unit Owners, all the while where repairs have to be completed to the buildings. Once again, this is a very personal choice for each Association. However, we are happy to be able to provide options to our clients in the event they do not feel they have enough reserves or the ability to collect assessments in a complete and timely manner.

7. The 6 Page comparison we have compiled details every aspect of the coverage, deductibles, and limits available from the Top 6 providers of Director’s & Officers Insurance Coverage for Condo Associations. It took our organization countless hours to pour through all coverage forms for these insurers so that we could prepare the comparison. It would be unreasonable for us to be required to post our efforts on a public website so that any one of our competitors can utilize as their own. If you like, we can happily share with the coverage comparison in person.

The coverage forms we have proposed for the renewal are both from Chartis and from Liberty Mutual Insurance Company. As for the debate regarding the public ownership of Chartis’ parent company AIG Holdings, that is one that is impossible to do on this blog. The American Public did not have to bail out or own any part of Chartis, or AIG Insurance. Chartis has done a great job for any of the Associations who had claims last year. The coverage forms between insurers vary vastly in this important coverage and we are happy to discuss the details in person.
8. With the crime policy, last year’s policy carried a limit of $300,000 and did not provide coverage extensions for “Computer Fraud”, or “Funds Transfer”. We could not offer this coverage at the time because we were not your agent and too many Agents had sent too many applications to too many insurance companies, blocking our access. This year, as the Incumbent Agent, we were able to access the Insurer of our choice where we were able raise the coverage limit to $500,000 and include coverage for Theft of Association’s Money & Securities which may be kept on site, Robbery or Safe Burglary on site of the Association, Computer Fraud, and Funds Transfer. While not all these coverages may be terribly relevant to most Associations, we were able to make all these improvements at lower premiums.

We are very sensitive to all the confusion and problems the Associations at the Village have experienced with the topic of Insurance. It is very unfortunate that most of that can likely be associated with the tactics used by some Agents. Once again, we have followed every requirement and rule of the bidding committee as required from us. We will continue to address the insurance needs at the Village with the utmost professional expertise.

Thank you and Happy Holidays.

Ty Beba, CPCU, CIC, ARM, AIC
Executive Vice President
Brown & Brown of FL, Inc.
Palm Beach/Treasure Coast
561-688-5082

IMPORTANT FACTS REGARDING CONDO ASSOCIATIONS' INSURANCE RENEWAL

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I hope this message finds everyone in good health and joyful spirits before the Holiday Season. Reading about insurance is not always the most enjoyable thing, but every so often we feel compelled to reach out to the Village Residents and clear the air. Hopefully this communication is not too cumbersome.

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We have been working on the renewal policies for the Associations in Century Village West Palm Beach for the past 4 Months. As you may already know, Brown & Brown successfully proposed the best coverage terms and premium options against two well known competitors: “Insurance Office of America” and “Corporate Insurance Advisors”.

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As the Incumbent Agent for some 240 Associations in Century Village, we were able to improve the coverage terms when available, and the premiums when possible again this year.

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For the past few weeks, we have been aware of other Agencies meeting with Associations on an individual basis and sending around “Estimated Quotes”. They then ask for an Agent of Record letter to be signed on their behalf so that all of our hard work over the past 4 months can be assigned to them based on their “Estimations”.

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As you review these guessed premiums and coverage terms please consider the following:

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Property Insurance:

1. Ordinance & Law coverage that is in place for your Associations has been cut in half in the estimates:

The “Estimated Quotes” severely reduce the Ordinance & Law Coverage we have in place for the Associations. The coverage mentioned limit is only HALF OF THE ACTUAL COVERAGE. For a Building Insured for $1,500,000 Limit, the Ordinance & Law Coverage is REDUCED FROM $75,000 In Coverage TO $37,500 in Coverage. If you see a lower premium in the property quotes from estimates, you will know why.

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1. DUE TO CLAIM HISTORY IN PREVIOUS YEARS MANY ASSOCIATIONS IN CV-WPB ARE NOT ELIGIBLE FOR A $2,500 DEDUCTIBLE!

Either way, the difference in premium between a $2,500 Deductible and $5,000 Deductible is about $80 Per Association, Per Year! It’s not recommended to have such a low deductible for older buildings. The claims frequency will increase rates in future years.

1. The very large deductible that is of the highest concern for the association is the Hurricane Deductible. The other estimates DO NOT and CANNOT provide an option to reduce this deductible so that large assessments can be avoided following a Hurricane.

Liability Insurance:

• THE COVERAGE LIMIT APPLIES TO EACH ASSOCIATION ON A SEPARATE BASIS FOR BROWN & BROWN’S INSURANCE PROGRAM. THAT WAS THE CASE IN 2011, AND WILL BE THE CASE IN 2012.
• It is irresponsible and incorrect to suggest that the coverage limit is shared on our program. The insurance policy clearly states the application of separate limits for each Association.

Equipment Breakdown Insurance:

• Once again, the “Estimated” quotes being circulated around the Village also EXCLUDE this key coverage part. One guess is that this is so that the total premium can be made to look lower on their “estimates”.

Umbrella Policy:

• OUR UMBRELLA POLICY LIMIT ALSO APPLIES SEPARATELY TO ALL ASSOCIATIONS. IT IS NOT A SHARED LIMIT.
• The coverage limit offered in the “estimated” quotes distributed to associations provides a much lower coverage limit than that of our policy. In fact it is $10,000,000 less in coverage.

Directors & Officers Coverage:

• Our coverage form and deductibles are more beneficial. We will be happy to share the 5 page coverage comparison form that was provided to the Insurance and Bid Committees with you upon request.

Crime Policy:

• Coverage has been extended both in coverage limits, and coverage terms for the renewal.

As you compare our Proposals to the Estimated Guesses of others, please pay special attention what you’re being asked to give up. All in all, we believe you will still find our proposals to be more competitive in pricing when compared to any other available out there.

Please come see us at the UCO office during the week days so that we can address any questions in coverage forms, payment schedules, or premiums. We will continue our hard work for Century Village West Palm Beach.

Happy Holidays; and a Healthy 2012!

Ty Beba, CPCU, CIC, ARM, AIC

Executive Vice President

Brown & Brown-Palm Beach/Treasure Coast Division

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FROM OUR INSURANCE CHAIR

These seems to be some misunderstandings regarding the renewal process—please let me try and make it clearer.

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We currently have three Agent’s bidding the renewal for the whole of Century Village for 2012. They are Barbara Addeo, with Corporate Insurance Advisors, Bob Lopker, with Insurance Office of America, and our incumbent Ty Beba, with Brown & Brown.

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They will be making presentations to the Insurance Committee the week of December 5th. The bids will be reviewed by the Bid Committee on Monday, December 12th and there will be a Town Hall Meeting on Thursday, December the 15th in the Clubhouse at 9:30am, so individual Associations can review their individual premiums for the year.

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If after reviewing the UCO insurance program you want to opt out, a form will be provided for you. But, please before you opt out make sure you have another Agency who will write your insurance coverage. If you opt out of the UCO program, you will not have insurance with us.

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I have had 2 Associations and 1 management company asking permission to seek quotes outside UCO. You don’t need permission to seek quotes outside; we feel that the program we provide will be comprehensive and cost effective. We only ask that you compare apples to apples. Make sure that what you’re buying is what you think it is and not a watered down version at a bargain price.

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If after reviewing our program, coverage’s and prices, you feel that you can get both better coverage and price with another agency, than opt out. You will have until December 23rd to return your selection sheets or you’re opt out sheet.

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We hope our selection will meet with your approval and that this letter makes it easier for you to understand the process. But, if you have any questions, I’m at UCO most days, please call

683-9189.

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Toni Salometo

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Insurance Safeguards or Opt Out

Clarification of question at the insurance buffet.

In 1999 Century Village associations agreed that UCO would select the Village building insurance, using proper bid procedures (that was part of the Bilateral Agreement).

If you do not want the UCO insurance choice you need to opt out because you are, by having signed the Bilaterial agreement, included. In the same way, if you don't return any instructions or sign up, you are automatically included. Last year, we didn't hear from many Associations and they were automatically included for UCO coverage. Without the Bilaterial, they would have had no insurance if we didn't automatically include them.

Simply put, you're in unless you opt out. This is the reason UCO asks those Associations who want to place their insurance outside of UCO, to advise us by letter each December. Being double insured is bad, having no insurance is much worse.

Everyone should be informed on the Bilateral Agreement (see Core Docs in sidebar) also the Condominium Act, and Bylaws or Declaration of the Association. 

From Toni Salometo

INSURANCE COMMITTEE

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INSURANCE COMMITTEE

DELEGATE ASSEMBLY – OCTOBER 7, 2011

If you’re currently insured with the Brown & Brown Agency and haven’t picked up your check then do so as soon as possible. On average, these checks are for around $550. If you’re a board member, see Mildred Levine at the door of the Investigation department at UCO, show her you’re Century Village ID and go home with a check. Better in your Association’s bank account than collecting dust at UCO!!!

There will be a Town Hall Meeting on Monday – October 17^th in the Clubhouse Party Room at 10:30 am, for a discussion of Director’s & Officer’s Liability, Crime and other fiduciary coverages. If you are an officer or a board member of your Association than this meeting is a must for you. Brown & Brown have invited a special guest to conduct this meeting and bring your questions.

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THIRD NAIL PROJECT

Hi all,
There have been many questions about an initiative developed by the Insurance Committee. The project will harden the roof of our two story buildings against wind damages; and may result in a reduction in Insurance premiums for both Homeowners and Association Insurance. Following is a report by VP Dom Guarnagia explaining this project:

Dave Israel
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Toni's Insurance Column

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I believe that Toni made a mistake in her column saying that the securing of the central air conditioners is an Association expense. She says that the responsibility for air conditioners falls to the Association FOR A COVERED LOSS. Securing the air conditioners is NOT A COVERED LOSS. It is maintenance. A covered loss would be in the case of a hurricane should the A/C be damaged the Association would pay to repair it. This was all discussed at the Delegates meeting this past month and was agreed by all that it was an owner expense unless the Association decided to pay for it. I don't know why Toni wrote her column in the manner she did. I think she goofed.
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MANDATORY INSURANCE MAINTENANCE BULLETIN

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MANDATORY RECOMMENDATION FROM AMERICAN COASTAL

We have been advised that American Coastal, our property insurer, has inspected our properties and has found some air conditioning units on the ground that are not properly secured and pose a hazard if there is a wind storm/hurricane.

This recommendation is mandatory for all A/C units on the ground to be inspected by a licensed air conditioning contractor and secured if they do not meet the necessary wind storm standards. It is necessary that all units meet the standard.

Failure to comply with this recommendation is possible grounds for cancellation, or non-renewal. They have given us 60 days to comply with this recommendation. Our completion date is 6-1-11 to advise our agent.

UCO and the Bid Committee have reviewed the bids from three licensed air conditioning contractors but you are free to choose any licensed air conditioning contractor you would prefer. They are:

Aztil Air Conditioning $89.00 per unit 561 433-2197 Jason

Gotham (Kilcoyne’s A/C) 75.00 per unit 561 575-2653 Robin

Triton Associates 45.00 per unit 561 282-0440 Jay

All of these contractors have been advised of what is necessary to complete the job and have agreed to inspect all ground units and only charge for repairing units that fail to meet the wind standard.

As of the last revision of #718, the responsibility for air conditioners falls to the Associations in case of a covered loss. Therefore, the expenses should be borne by the Association and not the individual unit owner.

If you or your Association has questions or would like us to help, please call the Insurance Committee at 683-9189 ext 150 or 151 for assistance. You need to advise us that the work has been completed. Again, our completion date is 6-1-11 to advise our agent .

Thanks for your cooperation.

Toni Salometo, Claudette LaBonte & Phyllis Siegelman
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Question About W.P.R.F. Insurance

I have a question about our W.P.R.F. I know our insurance for our buildings that is our associations had a big drop in rates for this year. Is there going to be a drop in the rates for the W.P.R.F. property insurance also ? and if there is are we going to get some kind of rebate or something? I hope someone can have an answer for this question.
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The following was provided by the Chair of our Insurance Committee Toni Salometo:
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In the course of my job as UCO Insurance Chair, I had to review W.P.R.F. insurance program. I did this before their August, 2010 renewal. Monica Wells, VP of Cenvill was kind enough to furnish me with their policies and loss information. I was very impressed by what I saw, all applicable loss exposures were adequately covered and the pricing was fair.

I asked who her agent was and what she thought of him. She said that she had been dealing with Ty Beba of Brown & Brown and was very pleased with the service and price. As Ty was most competitive with our renewal this year, I have no doubt that he has been as competitive with W.P.R.F.’s for the period they have written the coverage and will continue to be as competitive as the market will allow.
In answer to your question, I do not see a large reduction on W.P.R.F.’s insurance premium as ours, as their pricing was more in line than what ours has been in the last few years.

Toni

Brown & Brown Letter Continued

A very good question was posted by Mr. Lanny Howe regarding part of our letter handed out at the delegate meeting. Being that we wanted to provide a very thorough response, I thought it best to make a new post rather than try to fit a short response to the original question.

Thank you for taking the time to read our letter summarizing the process and some of the issues of note regarding the Insurance Renewal for the Associations in Century Village West Palm Beach. This letter was an outline of countless hours of research, review, and discussion that transpired between September and December 31 of 2010 between the Insurance Committee, UCO officers, and a number of Insurance Agencies.

As you know, insurance policies are legally binding contracts used to transfer risk of financial loss between entities. As most legal contracts, they can be cumbersome to sort through and contain a significant amount of legal terminology. There were several contracts negotiated and purchased for the Century Village Associations. The one specifically discussed in our letter was the Insurance Policy procured by Plastridge from an Insurance Intermediary known as AmRisc. This entity is an underwriting manager, authorized to issue coverage terms and pricing through a number of Insurance Companies. In this case last year, AmRisc underwrote the Wind Deductible Buy Down coverage through Lloyd's of London, QBE Specialty Insurance Company, and Steadfast Insurance Company to provide a reduction in Wind Deductible for ALL Associations in Century Village in West Palm Beach under one Insurance Contract.

As in most Insurance policies, coverage terms, insurance premium, taxes, fees, coverage limit, and deductible is reflected in the first few pages. The cost of this AmRisc policy was $978,299.89 including taxes and applicable fees. Quite notably, we were shown the actual Insurance Policies distributed to some of the Associations last year where the Premium and Tax information had been deleted. This in itself was VERY peculiar.

This specific Insurance Policy procured by Plastridge was a 50 page document in whole. The purpose of the policy seemed to be to further reduce the Per Building deductible for ALL BUILDINGS against losses from Named Storms, from 2% of a specific building's value to 0.5% of the building's value. Pages 4 and 5 of this Policy are labeled "Endorsement 1" which disclose some of the coverage and deductible details. "Item 7.B." specifically addresses the coverage provided from the Insurance Companies and the wording is very specific. It states that the coverage limit will be the amount between 2% of the building and 0.5% of the value of the building, "SUBJECT TO A $1,000,000 PER OCCURRENCE MINIMUM AS PER SCHEDULED". This means, the $1,000,000 minimum deductible applies to all buildings that are listed on that schedule. But you see, this is very different from saying any one building is ONLY subject to a Wind Deductible equal to 0.5% of the replacement cost of that specific building. The minimum deductible clause states this is not the case, UNTIL AFTER MANY buildings have been damaged at the same time, so that all the damaged Associations have paid a total of at least $1,000,000 in combined deductibles. If only a handful of buildings were damaged and the combined minimum deductible requirement was not met, then the deductible for that building might have still been 2% even though the Association paid for part of the premium of this policy hoping to reduce their deductible to 0.5%.

To reiterate our point, it's important to note that this policy is based on a "PER BUILDING DEDUCTIBLE". That means, only the damaged buildings would be subject to the minimum deductible calculation. Of course, in this case with the high minimum deductible, MANY buildings would have to be damaged FROM THE SAME STORM, so that their deductibles can be applied towards this $1,000,000 minimum.

It is common to have minimum deductibles on Insurance Policies; especially those providing coverage against loss from Wind Damage. However; a minimum deductible of $1,000,000 for the Associations in Century Village was very concerning in our professional opinion. The fact is, not that many buildings may be affected from the SAME WIND STORM considering all the roof updates that have been completed in CV WPB. So, ideally you would want a MUCH LOWER MINIMUM DEDUCTIBLE considering the HIGH COST of this specific policy. That's why the policy proposed by Brown & Brown at LESS THAN HALF of the premium of the Plastridge policy contains a minimum deductible clause equaling 1/10th of the expired policy. That minimum would effectively be satisfied with damage to less than 6 average buildings after a Named Storm, as opposed to requiring damage to some 60 buildings at the same time.

For the record, we have refrained from suggesting any specific reason why the insurance coverage was placed the way it was, and why it cost so much more both last year, or even from the renewal proposal submitted by Plastridge to UCO Insurance Committee at the time when all proposals were presented from all Agents. The Delegates and the Association Officers consist of truly engaged and caring individuals who will undoubtedly ask the questions to the parties they feel are responsible and obtain their own answers. We are not suggesting impropriety on the part of any past providers/advisors of this coverage; that is up to the judgement of individuals. We're only stating the fact that much better coverage terms and premiums have been available along the way which had not been provided to the Associations in prior years.

We believe our explanation of coverage detail is one of the reasons why the Insurance Committee consisting of 15 Members voted UNANIMOUSLY for Brown & Brown among three proposals, and why more than 240 Associations in CV WPB from a total of 309 have chosen to have us represent their insurable interests. There are very specific and various clauses in every Insurance Policy and our Agency has consistently and proactively provided definition and explanation of these terms to the Insurance Committee and the Associations. Unlike some other Insurance Agents, we chose not to circumnavigate around the Insurance Committee and we followed the formal review and approval process. Especially considering that this Committee of volunteers consisted of some of the most competent retired insurance professionals, with the goal of ensuring proper coverage be provided at the fairest price.

We are hoping to become regular contributors to the UCO Reporter with the supervision of the Insurance Committee and the UCO Officers. The goal for our contribution will not be to "sell insurance," but to "educate" policy holders about all the nuances that are contained in the Insurance Contracts as well as Loss Prevention ideas. We will also hold seminars on a monthly basis to discuss specific insurance policies and Loss Exposures on a monthly basis with interested Delegates and other Association Directors. In the meantime, we are always available to answer your questions through the Blog as well as via phone and e-mail.

Thank you,

Ty Beba

Executive Vice President

Brown & Brown of FL, Inc.

JANUARY 6 BROWN & BROWN INSURANCE LETTER

It wasn’t until this weekend that I read Ty Beba’s letter from Brown & Brown that was given out at Friday’s delegates meeting. It seemed very thorough to me and something all residents should have in hand to read. Assuming it has been vetted by the Insurance Company for accuracy, don’t you think a copy of this should go in the UCO Reporter?

I have one question about a point in the letter. Mr. Beba says “In addition, some of the [old] coverage terms were noted to be substantially different than what was thought to be purchased. For instance, the Wind Deductible from 2% of each building’s value to ½% of each building’s value had a Minimum Deductible of $1,000,000. That would have meant that this policy would not have provided any coverage until after the Associations would have paid the first $1,000,000 in claims.”

Does this really mean what I think it does? Our association paid a lot of money under the old, Dan Gladstone/Plastridge-arranged insurances for the second Buy Down, which lowered our deductible from 2% (after the first Buy Down) to ½%. With our 26-unit three buildings being worth $1.7 million, 2% meant we were responsible for $34,000 (the deductible). With ½% I thought it meant we were responsible for only $8500, a far more manageable amount. (Forget for the moment reliance on the $2000 coverages in homeowner’s coverages.) If a windstorm caused $70,000 in damage repairs, we would have to come up with only $8500; the insurance would pay the remaining $61,500. That's what I THOUGHT.

Mr. Beba’s letter seems to say that the second Buy Down would have provided NO COVERAGE unless the total damage to the condo buildings exceeded $1 million!! I would think the likelihood of damage exceeding $1 million almost nil! It makes the second Buy Down we paid good money for almost WORTHLESS! This is incredible!

Or do I misunderstand? I note that Mr. Beba says “until after the Associations [plural] have paid the first $1,000,000 in claims.” He’s not saying that the coverage for our three buildings is somehow tied to overall damage to ALL the Village’s buildings, is he? The only other explanation I can think of is that there are too many zeroes in the deductible amount in Mr. Beba’s letter. But he repeats this amount of $1 million, so I doubt this.

Unless I misunderstand, this means we were victims of a VERY costly rip-off under Gladstone-Plastridge concerning this second deductible.

Can anyone clarify this for me on the blog? Dan Gladstone? Chuck Knudson? Ty Beba? Toni Salometo? Is Mr. Beba saying what I think he is saying?

WHY WOULD YOU PLACE YOUR ASSOCIATION INSURANCE WITH THE PLASTRIDGE AGENCY?

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Hi all,
I would like you to start by looking at a chart, which is to be found at the following URL:
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http://goo.gl/svpIw

The chart depicts the inexorable increase in our Insurance premiums over the last decade with Plastridge. It shows an increase over the Base Year of 2001 of over 800%. This culminating in our aggregate premium for 2010 reaching $6,900,000.00!!! The chart shows the increase from a theoretical $1,000.00 in the Base Year.

Finally, after UCO acted in accord with The Bilateral Agreement and common business practice and put our Insurance package out for bids, we obtained a reduction of 40% and oh by the way changed our Agent of Record to Brown & Brown.

Only after all of this change, brought about by UCO, did  Plastridge came forth with their "A Game" and offered us lower quotes...I say, "To little to late"!!, Why would I do business with such a firm??? Furthermore, despite losing out in the apples-to-apples RFP and bid process, they come into our Village to sell Insurance. What kind of business ethics is that?

If you reside in an Association who has signed with The Plastridge Agency, ask your Board: Why, and where did all the money go. Do it today. Don't accept arcane Insurance Speak, ask for straight answers.

Finally, if you think that this increase can be ascribed to increases in the Consumer Price Index (CPI); think again; the following URL will take you to a chart showing the CPI from January 2001 to November 2010, the increase from the Base Year January 2001 to the latest available data is circa 25%.
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http://goo.gl/2dRga

Dave Israel
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Facts for Important Decisions

Good Afternoon,

In the past couple of weeks, it has become painfully apparent that there is a great deal of misinformation provided to Associations by parties with questionable intentions. We are well aware that all Associations and Board Members are concerned about making the right decision for their Unit Owners. It is very important that these decision are based solely on facts and not on assumptions, or distortions.

Below are a few items that have been brought to our attention, so we feel it is important to examine them one at a time:

1. In the past few weeks, there have been several adjustments made on the quotes presented by one of the other Agents. The premiums that were hand-written on the sheets they distributed were observed to be lowered from the renewal Proposal supplied to UCO during the well supervised bidding process. Then once again, they seem to have been adjusted from what was secondarily represented in curiously round premium amounts. These quote sheets also lacked coverage description as to the Name of the Insurance Company, the applicable coverage limit, and applicable deductibles.

Associations should verify with the Agent if all applicable Taxes and Surcharges are included in these quotes as it is not customary to see round number premium figures on quotes. A premium indication of $740 for General Liability coverage should raise a flag that surcharges and taxes which are calculated as percentages applied to premium may be missing from the indication.

Secondly, we have inquired with specific Insurance Companies from which Associations were led to believe they were receiving these quotes. It was interesting to learn that several specific examples we shared with them did not match the Insurer's records as the quote that was released to the specific Agent. It is imperative that all Associations retain a copy of the indication provided to them by an Agent along with the names of the Insurance Company and coverage limits. Once coverage is bound, it will be crucial to verify the actual premium and coverage against what is mentioned on these sheets.

2. Many of the Association we spoke with were unaware that the premiums for their policies had been Financed through a Premium Finance Company and was applied a finance charge to be able to utilize an installment pay plan. A copy of the current finance contract as was procured by the incumbent Agent, at an interest rate more than double of what's being offered this year, is available in the UCO office for review. It is also important to point out the negative impact this high interest rate had last year considering the significantly higher premiums that were financed. We have been able to deliver much more competitive financing terms for substantially lower premiums for the coming renewal which your incumbent Agent has offered to match. This is yet another item that raises the question, where was this improvement last year when there was no competition?

3. Law and Ordinance coverage is an important policy which the Century Village West Palm Beach Associations benefit from. This policy in basic terms provides additional funds in the event of property damage to cover for the elevated replacement costs which may be imposed as part of Construction Code Compliance to specifically address increased cost of construction, demolition to undamaged portion of the building, debris removal, etc. There is already a policy in force for the Associations which will expire on May 31, 2011. The premiums for this policy are still collected on a monthly basis. Even though a much less expensive option with the same coverage terms is available at this moment from our Agency, it would duplicate the cost of this coverage for the associations if this policy was issued prior to May 31, 2011. If the existing high priced policy was to be cancelled prior to the expiration date, the return premium would be penalized for short term cancellation. Replacing this policy at the said expiration date will be more economical for the Associations.

4. It has also been brought to our attention that the Associations are being advised against purchasing a lower wind deductible option this year by the SAME parties which NEGOTIATED and PURCHASED a set of very high priced policies for this very same purpose. It is important to note that last year, about $2,000,000 (TWO MILLION Dollars) of premium was charged to the Associations for this very same coverage alone. Brown & Brown is able to deliver wind buy down coverage for the Associations at HALF of the premium that was charged last year. Also, under our program this coverage is optional. So, each Association can decide whether or how much of this coverage they would like to purchase. This was not the case last year.

5. We have noted that the coverage limits shared on these hand-written quotes being circulated make no mention of the shared elements for specific Associations that commonly own a pool, pool cabana, etc. It's very important to ask the people providing these quotes, where these items will be covered, how much this coverage will cost, and how will this cost be distributed to these Associations. This raises questions for Associations such as the Golf's Edge, Greenbrier, Oxford, Plymouth, Wellington and their common elements. Our quotes included an equitable distribution of these common elements, among those specific Associations. It is something that should be provided from other Agents as well for comparison purposes.

There is a long list of items that must be reviewed in terms of: Insurance Company, Coverage Limit, Exclusions, Deductibles, and Price when considering which insurance program is the best for each Association. Unfortunately, it seems that the discussion and review is being guided towards a simple comparison of premiums alone. And of course, the premiums provided by the same Agent year over year are substantially improved in the light of competition from other Agents.

Let's examine how the insurance proposal from the Incumbent Agent drastically changed from just last year, where the Associations were charged Millions of Dollars more. In addition to the new Insurance Companies brought to the table, the coverage terms, the premiums, finance rates, and even the way the insurance coverage is offered to individual Associations changed dramatically from the prior years. These big changes all come at the same time when our Agency was elected following a very thorough interview, coverage discussion, and premium negotiation process. Sometimes an answer is as clear as it really seems. As all the facts are considered, we welcome any questions; including those from Associations that may have been leaning a different direction in light of the limited facts they may have been presented. We will have representatives in the UCO office from 9AM to 1PM daily until Thursday to address any questions or concerns in person.

Sincere Regards,

Ty Beba, CPCU, CIC, ARM, AIC

Executive Vice President

Brown & Brown of FL, Inc.

WHERE WERE THESE LOVELY PRICES FOR THE PAST TEN YEARS

Hi all,
I am advised that our erstwhile insurance agent Mr. Knudsen was presenting his wares to Dover Association in the Clubhouse this morning; his appearance was not arranged according to guest policy at the Clubhouse, but that is another matter.

Despite the fact that the Plastridge Agency lost the apples to apples bid/quote competition, their agent Mr. Knudsen seems not to care one whit and continues to divide our community against itself.

Your current UCO Administration has followed the high road, we bid out the policies in accord with The Bilateral Agreement, we obtained specific quotes for each Association and by the way we have reduced the cost by 40% or close to $2.5 million dollars.

Those who lost the competition should answer the following burning question; Where were you with the quotes you are now offering over the last ten (10) years???

Think before you jump, and be careful what you ask for, you just may get it.

Dave Israel
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UCO EMERGENCY INSURANCE MEETING - 23 DECEMBER, 2010

Hi all,
The video of our Insurance meeting of December 23, 2010 is now live in Cyberspace: Click the following URL:

http://goo.gl/gAnTh

Or see the Side bar:

UCO INSURANCE TOWN MEETING 23 DECEMBER, 2010


See our new Insurance Agent of Record Ty Beba present our new Insurance program which features flexibility in coverage and choices ( An Association may choose or reject Equipment Breakdown and also Worker's Compensation. Also there are very significant choices as regards Wind Buy down coverage) which can mean as much as 40% reduction in premium over last year.

Thanks to the UCO Insurance Committee for the extraordinary effort in crafting this new program.

And don't forget to get your Association Quote Sheet by Email, to request it, send me an Email at:

nsasigint@comcast.net 
- 
ucopresident@gmail.com

Thanks to the Channel 63 team for the video.

Dave Israel
President
United Civic Organization

QUOTE SHEETS BY EMAIL

Hi All,
We have the Association Quote Sheets from Brown & Brown in Computer format.
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Anyone interested in receiving their Association Premium Quote Sheet for 2011 by Email, please forward your Email address to me at either of the following Email addresses:

1) nsasigint@comcast.net
2) ucopresident@gmail.com

Be sure to tell me who you are and in which Association you reside.

Dave Israel

INSURANCE QUOTES RUMOR CONTROL

Someone is circulating a rumor, that the Brown & Brown Quote sheet does not include a quote for Law & Ordinance coverage, just so their total premium would appear lower; this is not true, now let’s see why:


there is currently a Law & Ordinance policy in place for the CV West Palm Beach Associations set to expire on 5/31/2011. The annual cost for that current policy provided through Plastridge including taxes and fees is $620,854. A copy of this policy is available in the UCO office for your review.

Brown & Brown did propose a replacement policy for the Law & Ordinance coverage during the extensive qualification, research, and bidding process organized and supervised by UCO. Their proposal for the exact same coverage was $425,637.24 including taxes and fees based on the values for all of the associations.

That would have been an annual savings of approximately $195,217 just on that policy alone. That would translate to an annual premium rate of 7.6 cents for each $100 worth of building value. For a Building valued at $1,616,734 as part of the shared program; the Annual Premium for the Ordinance or Law would be approximately $1,229. The exact figure may be just slightly different based on the rates available in May 31 of next year. They do not anticipate much, if any change with the rates between now and then.


Why don’t we implement this new quote now? Because the high priced Plastridge policy premium has been fully earned and thus if we canceled it at this time we would get very little back from the already paid premium. Rest assured we will implement the new rate in June 2011 with Brown & Brown!!

Dave Israel
President
United Civic Organization

OPTING OUT

                                              OPTING OUT

The Brown & Brown Insurance program quotes have been released, and those Association Boards who do not have them should come to UCO AS SOON AS POSSIBLE to obtain your specific information.
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Those Associations who wish to Opt Out of the Brown & Brown program must so advise UCO in writing, signed by two Board members and sealed with the Association seal by close of business, Wednesday, 29 December 2010 - 1:00 PM.
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All Associations who have not specifically Opted Out by this date will be covered under the Brown & Brown program, under Option three (3) , (full wind Buy Down, 3% to 1%).

Dave Israel
President
United Civic Organization
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BROWN & BROWN INSURANCE QUOTES

Hi all,
If you were not present at the Insurance meeting this morning in the Clubhouse please have a Board Member come to UCO this afternoon to pick up a quote sheet for your Association.

UCO will remain open until 3:00pm for this purpose only!

Dave Israel

INSURANCE MEETING - UNIT OWNERS ONLY

Hi all,
UCO has received "information" that certain Insurance Agent(s) who were not selected by our interview, RFP and Bid process, will attempt to attend the special Insurance meeting in the Clubhouse theater on December 22, 2010, at 9:30am.

The purpose of their attendance, is not known, but we must assume that one purpose may be to disrupt our unit owners meeting.

Therefore, this meeting is herewith announced as "for unit owners only" and Century Village ID cards will be required to attend.

The only official guests will be our Insurance Agent of Record, Brown & Brown.

Dave Israel
President
United Civic Organization