feedback please - initially and since I moved here almost 5 yrs ago, I have purchased the FEMA flood insurance tho neighbors have suggested I don't need it - being from the North, I have not yet overcome my hurricane paranoia -----do I really need it? The renewal notice just arrived and zoom - the premium really increased - probably due to new FEMA flood maps ---which I have examined ---am I just really paranoid or does anyone else in CV purchase it?  Thanks to the CV branch of the Oracle of Delphi for input. 

Handling Insurance Casualties

Hi guys,
I'm sure there are some very smart guys out there who have created some great working models of an association's inner workings that others could easily emulate. On the other hand, I've been in meetings where many other presidents and Boards of Administration just don't have a clue of where to start when it comes to handling insurance casualties. I want to share a few ideas I have imparted to my owners and Board members. You can take it for what it's worth. If it helps one person out there, then that's a good thing....

To the home owner - It is not necessary nor desirable to call anyone other than your president and insurance company to begin the process of handling an insurance casualty. If your president is unable or unwilling to help you, and you can't reach your insurance company, please feel free to call me or others who will provide you with the necessary guidance. We also have an insurance committee that can advise you of the steps to take. Ed Black, one of the most knowledgeable committee members, is currently working to construct a model for all to follow that will hopefully end any confusion once and for all. Until then, however, I have a few tips that may help you get started.

DO NOT CALL A PUBLIC ADJUSTER! They are used ONLY if a dispute arises between the insurance company and the contractor over the amount that should be paid. If needed, they will come into the picture down the road.

My suggestion to anyone out there who still is unsure of what to do when they have a casualty is to do what we know to do in our association:

1. Stop the damage from continuing! Turn off the water supply, put out the fire, turn off the power, etc. If you don't know where the shutoffs, breakers, or fire extinguishers are, don't wait until you need them to find out. Find out now!
2. Call your president or, in his absence, a Board Member, and give him the details of what happened so he handle the association's area of responsibility and can decide if it is necessary to call the association's insurance company.
3. Call your home owner's insurance company right away. Get a claim number if possible and ask when the adjuster will be out to make a report. Let the president know as soon as you know.
4. While you are waiting for a response from the insurance company, take lots of pictures and video if you can. If you can't, then ask a neighbor who has a camera to take them for you. I have offered to do it in my association. I'll do it for you too if you can't find anyone.
5. Write a handwritten or typed statement about the casualty. Ask yourself the following questions and write the statement around them:

1. 
   
   WHO WAS INVOLVED- EYEWITNESSES, PARTICIPANTS, ETC.
2. 
   
   WHAT ACTUALLY HAPPENED - WHAT WERE YOU DOING AT THE TIME.
3. 
   
   WHEN DID IT HAPPEN - EXACT DAY, DATE, AND TIME?
4. 
   
   WHERE DID IT HAPPEN -KITCHEN , LIVING RM, UNDER SINK, ETC.
5. 
   
   HOW DID THE CASUALTY ACTUALLY OCCUR?
6. 
   
   WHY DID THE CASUALTY HAPPEN?

Having this statement will be of invaluable help to both your insurance company and the president and will result, along with the pictures and video, in getting your home repaired much sooner.

NOTE! DO NOT CALL THE PUBLIC ADJUSTER!!!

If you have questions about any of the above, you can call myself, Ed Black (forgive me Ed :-) ), or others who are in the know, call your president if you are an owner, and most important of all, call your home owner's insurance company representative immediately following the casualty.

Hope this helps for now. The insurance committee will have a much better comprehensive model for everyone when it is complete.

Hope this helps a bit!

Lee 561-202-8460

Insurance by the Numbers

Yesterday I had a sales call from my homeowners insurance - Allstate.
It made me look at the record, my annual payment is $240 basically the same as in the year 2000. In between there were annual factored increases which I adjusted back to the values of my very humble possessions and condo. Happiness is $240/yr.
Then I looked at the Seacrest numbers for my annual building insurance for my unit alone. Year 2001 - $120 annual, following years $: 296, 325, 356, 448, 565, 990,1006, 956. Year 2010 - $1,049.
Can anyone explain the difference. There is annual sighing and hand-wringing and the sad story of failing insurance companies, and hurricanes.
Allstate stays the same, Plastridge up, multiplied by more than 8x.
Since UCO gave the insurance companies our individual association budget numbers no doubt they will pursue even more of our dollars.

WHAT DOES THE NEW WORKMAN'S COMP COVERAGE COVER?

Dear Lanny,

Your question about the Workman’s Compensation (WC) was referred to me today. I am sorry, but I did not receive an email from you. I get about 150 junk emails a day and if you are not on my safe list, your email ends up in the junk heap.

Q1. All contractors supposed to be insured. The Associations cover themselves under Liability policy.

Q2. To be considered a non-employee for the purposes of the Workman’s Compensation Law, the statue lists several criteria which the independent contractor must meet.

1. Maintains separate business (own facilities, vehicles, equipment, etc.).
2. Federal identification number held or applied for (unless not required by federal government, i.e. sole proprietor).
3. Performs specific work/service for specific amounts of money, controlling the method of performing the work/services.
4. Incurs the principal expenses of the work/services performed.
5. Responsible for satisfactory completion of their work/services, or held liable for failure.
6. Only compensated on commission per job or competitive bid bases.
7. Realize profit or loss on work/services.
8. Has recurring liabilities/obligations.
9. Succeeds or fails based upon business receipts to expenditures.

All of the above must be met. If even one of the above is not met, the person or persons may be considered employees.

One must consider “casual labor” i.e., completed less than 10 days, at a labor cost of less than $500 and is not in the employee’s normal business (easily compare to a resident that doing a job for the Association).

Also, if the contractor uses a sub-contractor, he is liable for the injuries of the subcontractor’s employees if the subcontractor does not carry W.C. Since construction outfits which hire fewer than 4 employees are not statutorily required to secure benefits, their exemption may be waived. By purchasing insurance, the employer & employees become subject to all provisions of the law (for example, limiting the ability to sue & the amounts for compensation). This is a great advantage to the contractor.

Q3. If you have several entities involved in a project, each entity separately can be involved in the liability in various percentages (%).

Q4. Do not mix the requirements of the law about licensing, with injuries of employees. Just because am Association has a WC policy it does not mean that it can hire an unlicensed electrician, etc.

Q5. There are 3 categories of benefits under the Florida Law: a) Medical Expenses (unlimited coverage); b) Disability benefits; and c) Death benefits. We believe that we have sufficient coverage regarding “b” and “c”.

Lanny, as you can see, it is not easy to change the words of the law to layman’s words without jeopardizing the full meaning of the law. All personal or Associations’ questions will be discussed personally and privately.

This is for information only, not to be used in any legal matter

WHAT DOES THE NEW WORKMAN'S COMP COVERAGE COVER?

I am reading the insurance column in the May 2009 UCO Reporter and am befuddled. The article, by Dan Gladstone, speaks of a workman's comp insurance, new in 2009, that all associations have. Our associations are protected from lawsuits by "employees," the article says, and contrasts employees with "contractors"—true contractors, I take it from the article. I have several questions.

1. Are all true contractors insured?

2. What does "employees" mean—people our associations may have employed to do work, such as handymen, or employees of a contractor?

3. If employees of a contractor is meant, wouldn't they (assuming the contractor is insured) be insured also? And if not, what is the point in having a contractor be insured?

4. If employees means anyone an association employs to do work, this is great news. It means we no longer have to be worried that the handyman we hire to make a simple gutter or roof repair will fall off the ladder and sue us for medical costs. If it means this, why then haven't we heard this more clearly, and why have there still been the dire warnings about hiring uninsured workers?

5. How MUCH is the coverage? Is it some token amount or is it a realistic amount that will really protect us?

I'm sorry, but this paragraph in the article is unclear to me as are some other things that come out in the Reporter.

I believe two problems need to be addressed. First, those who put out such information need to themselves be clear about things. Second, assuming they are clear themselves, they need to take pains to make sure what they write is clear to the average resident. One way to accomplish this is to try out the article on one or two "average residents"—but note, people who will SAY if they don't understand something.

The aforementioned article reads: "Workman's Comp: New in 2009. It protects the Association from lawsuits by employees. This is a very important policy because not every "contractor" is a contractor. There are cases that contractors are found, by the courts, to be employees. The nature of such lawsuits by employees are staggeringly high."

I e-mailed Dan Gladstone asking for a clarification of this a few months ago but received no reply. Perhaps I made a mistake in addressing my e-mail. I thought I'd put it on the Blog now, and perhaps Dan or someone else can answer it.

FACTS ABOUT THE VENTNOR B LAWSUIT

The story is simple: On July 7, 2005 a fire destroyed the condo building located in Century Village East (CVE) in Deerfield Beach -- a large retirement community. The condo documents required a policy of "Payment of Full Replacement Value."
More than 4 years later many families are still homeless. The policy that was signed by CVE and COOCVE, two umbrella organizations supposedly in charge of taking care of this kind of business for the single associations, was not paying full replacement value, leaving the owners short of rebuilding their homes.
Please read the whole story: THE FACTS ABOUT THE VENTNOR B LAWSUIT -- AS SAD AS THEY MAY BE! at:
http://www.ccfj.net/CCFJVentnorBlawsuit.htm
This paragraph of the lawsuit tells the whole story in a few words:
28. The reckless acts and omissions of Defendants by and through their officers and directors and/or agents were committed in bad faith and in a manner exhibiting wanton and willful disregard of human rights, safety, or property, wherein "MIRV" was the actually level of insurance required on the property.

Universal Property Endorsement

What was the endorsement that UPC policyholders need to have--mentioned at the Delegate Meeting? Thanks.
...........................................................................
Your BLOGMEISTER replies:

Per: Dan gladstone; Insurance Chair.

All HO Policy holders of Universal Property & Casualty Ins. contact their agent and have them add All Risk Coverage (Endorsement # H017320491R) on their policy for the extra cost of $31 annually. Dan will go into more detail on the Endorsement in the next UCO ReporterDan Gladstone can be reached at 712-1923