ACM minutes, 2024 02 07

Topics:  insurance

Present:  Mike (fac), Cheryl, Vicky, Ben, Michael, Laraine (co-fac), Kerry, Linda, Robin, Kay (notes), Jorge, Natalia & Heather, Cyd, Vinnie, Joe, online 8:00 Justin Metcalf, insurance broker

Wednesday, February 7, 2024, 7:00 p.m.

Check-in prompt, tell a funny story.

Committee Reports

Conflict Support. Reasons for not getting involved in work parties: scheduling, always have plans Saturday morning, fear of stepping on toes.  Poem, "Peace is this moment without judgment." How does this apply to our community?  There is never a perfect time for a work party, never a perfect way to run one. Never a perfect way to do a job; it isn't how I would have done it and that's okay. Let the moment be without judging.  Judgment blocks connection, keeps you from opening to the whole person. Being able to receive a judgment and consider it without bad feelings.

Welcoming. "The Commons," program on the 10th, Saturday at 10 a.m. Held the 10th of each month.

Farmette.  Planting first seedlings this weekend.

Conflict Support.   Webchat by Karen Gymnig, "Embracing Conflict" Feb. 17, 1:00 p.m. Will watch first part and then work on skills.

Fund Raising. Held first meeting.  Have sold a few things. If you have something you'd like to donate for sale, contact Vicky. 

Have a donated phone and will set up for donations for guest rooms.

Saturday 7:30, Folk Dance Group will be here.

Documentary about Satanic Temple, "Hail Satan". Friday night, 9:30 pm

Fund-raising event:  Roomba Wars: Multiple roombas, put a knife on the front and a balloon on the back and turn them loose.  Last Roomba with its balloon unpopped wins.

Insurance

Handout, "Wasatch Commons Insurance Policy Overview," link available on email, will also email pdf.  Includes overview, checklist of what your HO6 should cover, do I have the right coverage (HO6), how does it work in real life?

Presentation will be recorded.

Justin Metcalfe, our insurance broker, will be joining us over Zoom.

We have two policies, one for common buildings and one for residential units.  Handout shows features of each policy, plus comments.

Changed deductible on units  from $10K to $25K, effective as of February 1. Affects owners' individual HO6 policies.  HO6 policy needs to cover the first $25K of damage to a unit before the Association policy kicks in.  Recommended to have earthquake endorsement in HO6 policy to cover personal property and 5% deductible* on earthquake insurance; 5% of building replacement cost, not 5% of damage; divided among unit owners of building.

"Ordinance or Law" coverage added this year.  If a building requires demolition, covers removal of debris.  If enough damage that repairs need to be up to code, it pays for difference between the replacement cost as covered by main policy, and bringing the replacement up to code.

Recommend "Water Back-Up and Sump Overflow (Building)".  Kerry says hers costs $55/year for $5K coverage.

Q. How do I get an HO6?  A. From whatever company you prefer, for instance, the company you have auto insurance from.

8:00 online, Justin Metcalf, insurance broker

If damage occurs over an extended period of time, insurance usually doesn't cover it.  For instance, State Farm has a limit of 18 days. Most don't cover mold. AmFam has limited mold coverage. Could be coverage for something that isn't detected, e.g., pipe leaking inside a wall.  Should someone have known?  Is there no negligence?  "I never go to my basement" isn't a good excuse for not knowing. 

Get a restoration company to assess damage, before filing a claim.  As long as you are mitigating the damage, you have time before you need to file a claim.

Master policy has to cover entire structure.  The HO6 covers the first $25K before the master policy kicks in.  Differentiating "studs in/studs out" no longer applies. 

Damage to personal property is on HOA6 and doesn't count towards master policy deductible. 

If you don't have insurance, you need to pay the deductible out of pocket.  If someone doesn't have enough to cover the deductible, the association can put a lien on the property. 

Raising the HO6 from $10K to $25K might be a premium increase of $12 per year.  Having higher coverage than the deductible is an advantage in case of an earthquake.

"Loss assessment coverage" usually between $1K and $10K, will cover a special assessment from the association.

The deductible is per incident.  When damage to more than one unit, the $25K is split among them, based on percentage of damage to each unit.

For personal property, once a year walk through house taking video. Be thinking of new replacement cost, not depreciated value. Most but not all HO6's do replacement cost.

Regular home owners policy is usually an HO5. 

The insurer may inspect occasionally, maybe every three years, and make recommendations regarding e.g., trees. 

If the association knows of a hazard and does nothing, a claim may be denied. 

If a tree damages a car, it would be the auto comprehensive that would cover it. Usually it's "an act of god" and covered. If there was negligence, the car insurance might come after the association.  Same with damage to a neighbor; their insurance would cover it without liability to us as long as no negligence.

Brokerage has a "unit owner letter" the association can give owners.  Cheryl sent out in an email about 6 weeks ago.  Add to orientation packet.

It's fairly typical to own $50K in personal property.

Master policy will rebuild but not provide housing meanwhile; HO6 "loss of use" covers hotel stays, etc.

Liability often doesn't fully cover bites from breeds such as akita, chow, pit bull, wolf mix.

If you have HO6 coverage through the same company as the master policy, you don't pay a separate deductible.

End of Justin's presentation.

Request:  have a community workshop to go over the handout and our HO6 policies together.

It's been a number of years since the last visit from an insurance inspector.  Should we request an inspection?

Emailed 3/5/2024.