AJ Marchionne

Condo Association Master Insurance – Reccommended Coverage (continued) Boston, MA

In our previous blog we discussed Recommended Coverage for Condo Association Master Insurance policies. This blog is a continuation from our previous one.

Below is additional coverage available for purchase that is not included in your standard condo association master insurance policy, but certainly recommended. Here is a listing of the top hit list: 'All In' or 'Walls In' coverage, Directors & Officers Coverage, Water Damage & Backup of Sewers and Drains, Ordinance and Law Coverage, Crime Coverage, Umbrella Policy, and Workers Compensation.

'All In' or 'Walls In' coverage – In the event of a claim, “ALL-IN” coverage means the master insurance policy will pay for the covered damage to the building and all permanent fixtures and improvements made to each unit. In the event of a claim “WALLS-IN” coverage will pay to fix the frame of the building. In other words your association or each unit owner is responsible to pay to have the rest of the building repaired. “ALL-IN” coverage is the preferred and recommended coverage on ALL policies!

Directors and Officers Coverage - When directors are acting on behalf of the association, this provides them financial protection against law suits in case they make an error or bad decision with regards to the condo association. This is an important coverage that is often missed.

Water Damage & Backup of Sewers and Drains – This is NOT FLOOD coverage. This coverage provides protection if your sewers and drains back up causing water damage to your building.

Ordinance and Law Coverage – There are 3 parts to this coverage, Part A – Coverage for the loss of the undamaged portion of the building, Part B – Demolition Cost Coverage, and Part C – Increased cost of construction. Let's provide an example of when this coverage would come into play. Your building catches fire and 40% of it burns down. The city evaluates your loss, determines it is unsafe to fix the building (Part A), requires you to knock it down (Part B), and rebuild to the current buuilding codes (Part C)! If you don’t have this coverage your condo association will be issuing a loss assessment to each unit owner to pay for the additional 60% of the undamaged portion of the building that insurance company is not going to pay for, the demolition cost, and the increased cost to rebuild back to code.

Crime Coverage – Provides coverage for your condominium association’s bank account if the treasurer or another director were to steal money from the account. Most associations require this coverage to be purchased. This is inexpensive to purchase.

Umbrella Policy – This provides your association an additional $1,000,000 of general liability insurance. Higher limits are available.

Worker’s Compensation – This is Employer Liability coverage to financial protect your condo association. If your condominium association has employees or contractors working on your building or property this provides coverage in the event of an accident where the employee or contractor gets injured on the job.

This is the short and sweet version of our top hit list of recommended coverages for condominium associations. This list may or may not be applicable to your association. Please contact us for a review of your condo association’s master insurance policy to see if you are properly covered!

If you have gotten this far and would like additional information please see our webiste, Albert J Marchionne Insurance Agency Inc. or contact us by email at aj@marchionneinsurance.com

Condo Association Master Insurance – Recommended Coverage - Boston, MA

In the following blog we are going to provide you a list of Recommended Coverage for a Condo Association Master Insurance Policy. Throughout our 60 years of experience our company, Albert J Marchionne Insurance Agency Inc, has developed a set of recommended coverage for a master insurance policy for condominium associations.

Since each condo association is unique in it's own way, we will have a slightly different set of recommended coverages. Let’s get started with the basic coverage that all associations should purchase. Condo association master insurance includes building coverage and general liability coverage.

Building Coverage - provides protection for the condo association's building against certain causes of loss (examples - fire or wind) (NOT earthquake or flood)

General Liability - Provides financial protection for your association if it (or a member of it) is the cause of property damage or bodily injury on the premises. A prime example is a person slips and falls on your property, gets injured, and sues the condominium association.

Below is an additional coverage hit list that is not included in your standard master insurance policy, but may be recommended for your condo association:

- Earthquake Coverage

-Flood Coverage

-Directors & Officers Coverage

-Water Damage & Backup of Sewers and Drains

-'All In' or 'Walls In' coverage

-Ordinance and Law Coverage

-Crime Coverage

-Workers Compensation

-Umbrella Policy

We could write a separate blog on each one of these specifically, but instead we will save you the pain and agony. For your convenience, we have written a one to two sentence definition for each. If you want more detail about any one of the above please flip me an email (aj@marchionneinsurance.com).

Please understand that the definitions are brief and are being provided to just to give you a basic understanding. Please do not make coverage decisions based on the info below. Talk to an independent insurance agent first - call us @ 617-471-5010 and ask for AJ or Jenn!

Earthquake Coverage – This will give your condo association coverage against an earthquake. All standard condo insurance policies exclude earthquake coverage.

Flood Coverage – This will provide your condo association coverage against floods. All standard master insurance policies exclude flood coverage.

The rest of the Recommended Coverage for Condo Associations listed above will be explained in my next blog published in two weeks!

Directors and Officers Liability Insurance (D & O Insurance) - Condo Associations in Quincy, Mass.

Condo associations normally purchase property, general liability, and crime insurance for their condominium association. Another type of insurance that's highly recommended is Directors and Officers Liability Insurance (D&O Insurance). D&O insurance is basically Errors and Omissions Insurance for the trustees of the Condo Association while performing duties on behalf of the condominium association. Lawsuits against the trustees can originate from either from a decision made by them or simply inaction.

The responsibility of the board of directors is to make decisions in the best interest of the condo association. We all know this is not a perfect world and all decisions will not have universal support. Therefore, some unit owners may not agree with decisions made and if they suffer financial consequence and feel wronged they could bring legal action against the Board. That's one situation of where a lawsuit can originate. D&O insurance provides the coverage or protection your association would want to have for your directors, officers, or trustees. Even if the person suing the directors, officers, or trustees is completely wrong you still want to have the defense costs paid for by your insurance. Since the trustees volunteer their time to help your community, they shouldn't have to bear the risk of their personal assets. Personally, I wouldn't serve on a Condo Association Board without this protection!

An example: the condo association allows for a porch to be built onto the exterior of a second story unit. The first story unit owner living below no longer has the beautiful view it once had. Now the first story unit owner feels his property has been devalued and want to be made whole. Who does he sue? The directors, officers, or trustees who permitted the porch to be built. This would not be a covered claim in your standard condo association insurance policy. The condo association would need to have D&O Insurance to have coverage which will pay for the defense cost of the lawsuit and a settlement, if necessary.

Unit owners or tenants can bring lawsuits going after monetary or nonmonetary aid. Some D&O Insurance policies provide coverage for only monetary relief while others provide coverage for both. D&O Insurance policies are relatively inexpensive as claims are not as common as property or general liability claims. Talk to a local independent insurance agent who can help you figure out what is in the best interest for your condo association.

Email Albert J Marchionne Insurance Agency today!

Call us @ 617-471-5010

What is the Difference between a Condominium Association Master Insurance Policy and a Unit Owner Condo Insurance Policy (HO-6), South Boston MA?

Unless you have studied insurance for a living, it can be difficult to understand the difference between a Condo Association Master Insurance Policy and a Unit Owners Condo Insurance Policy (HO-6). Since there are a number of differences, I explain the basics.

MASTER INSURANCE POLICY

The Condo Association Master Insurance Policy is purchased by the condo association. You pay for the cost for this insurance indirectly. It's usually built into your condo fees.

The Condo's Master Insurance Policy has 2 basic sections, Property and Liability. The property section provides insurance coverage for the building, common areas and in some cases each unit (but not your individual contents). To explain this simply: If you flip the building up-side-down whatever doesn't fall out is covered by the Condo Association Master Insurance Policy.

When you do business with AJ Marchionne Insurance Agency Inc, we take care of this so you do not have to worry about it.

The Condo Association's Master Insurance Policy provides liability insurance to cover the association against law suits. If someone was to get hurt on your premises and sue the association your insurance company will pay for the injuries and all of the legal expenses.

UNIT OWNERS INSURANCE POLICY (HO-6) - This is the personal policy that you as a unit owner should purchase.

These insurance policies are relatively inexpensive and sometime start as low as $150 per year. Your Unit Owner Condo Insurance (HO-6) provides coverage for your contents (clothing, furniture, TV's, computers, dishes & bedding against fire, theft, hurricanes and broken pipes, etc). The Unit Owner's Insurance (HO-6) also provides coverage for any portion of your unit (building) that is not insured under the Condo Association Master Insurance Policy.

Similar to the Condo Association Master Insurance Policy the Unit Owner's Insurance (HO-6) also includes liability coverage for law suits brought against you as an individual. For example: you have guests visiting and one of them slips, falls and hurts themselves in your unit and sues you personally. This type of law suit will be covered under your Unit Owner's Insurance Policy (HO-6).

You can contact us for a free review your Condo Association's Master Insurance and the Unit Owners Condo Insurance (HO-6) to make sure there are no coverage gaps that could cost you $$. Don't wait until it is too late and find out the hard way. Know the facts upfront when you initially buy your insurance. As a service we will attend one of your condo association meetings, give a brief explanation of the Master Insurance and how it works in conjunction with the Unit Owner Condo Insurance (HO-6) and answer any questions you may have.

Let AJ Marchionne Insurance Agency Inc take care of all your insurance ranging from Condo Association Master Insurance, Unit Owner Condo Insurance (HO-6), auto insurance, life/mortgage insurance, health insurance & business insurance, etc.

If you have questions or want to make sure your insurance is done correctly at the best price contact AJ Marchionne Insurance Agency Inc in Quincy, MA at 617-471-5010. We have been in business for over 60 years!

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NEW CELL PHONE TEXTING LAW (Safe Driving Law) - Massachusetts
Effective September 30, 2010

Sending or Reading Electronic Messages:

Operators cannot use any mobile device to write, send or read an e-message while operating a vehicle. This LAW applies to all drivers of all ages.
PENALTY (for all ages)
1st offense = $100 fine
2nd offense = $250 fine
3rd offense + = $500 fine

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OPERATORS UNDER AGE 18:

Age 18 and under cannot use any mobile e device for any reason while operating a motor vehicle.
Exception: Emergency Only
PENALTY (18 or under)
1st offense = $100 fine; 60 day license suspension and an attitudinal retraining course
2nd offense = $250 fine; 180 day license suspension
3rd offense + = $500 fine; one year suspension

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Unsafe or impeded operation due to the use of a mobile phone:

Operators over 18 can use mobile phone for calls as long as one hand is on steering wheel at all times. The use of a mobile phone must not interfere with driving and cannot be used for texting.
PENALTY (for all ages):
1st offense = $35 fine
2nd offense (within 12 months) = $75 fine
3rd offense (within 12 months) = $50 fine

NOTE: IT IS NOT AN OFFENSE IF THE VEHICLE IS PARKED IN AN AREA OF THE ROAD NOT MEANT FOR DRIVING.

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NEGLIGENT OPERATION AND INJURY FROM MOBILE PHONE USE:

Personal injury or property damage caused by negligent operation of a motor vehicle is a CRIMINAL OFFENSE. If you crash because you were using a mobile electronic device you will face criminal charges. In addition to the criminal charges, you will face loss of license as described below:
PENALTY (under age 18):
1st offense = 180 day suspension
2nd offense + within 3 years = one year suspension
PENALTY (18 Years or older):
1st offense = 60 day suspension
2nd offense + within 3 years = one year suspension