12/15/2020 Chinquapin HOA PO Box 6001
Tahoe City, CA 96145
12/15/2020 – 12/15/2021
• General Liability – United States Liability Company
o Limits of Liability – 1,000,000 per Occ and 2,000,000 each policy year • Directors & Officers Insurance – CAN Insurance Company
o 1,000,000 per loss / 1,000,000 each policy year • Umbrella Insurance – CNA Insurance Company
o 10,000,000 per occ / 10,000,000 annual aggregate
• Property Insurance – Westchester Insurance Company – ETAL lists o 125,000,000 Building coverage – 100,000 Deductible for property • Fidelity Bond Insurance – CNA Insurance Company
o 2,000,000 limits of coverage
Pursuant to the Davis-Stirling Common Interest Development Act which went into effect January 1, 1986 as California Civil Code 1350-1378 and rewritten effective January 1, 2014 as Civil Code §§4000-6150 there are specific requirements relative to notifying property owners within the association about the Association’s insurance policies and coverage.
We have prepared the following documents to assist you with the process of complying with the Code. Please be sure to distribute these documents to the unit owners. The relevant Code is copied on page two of this letter for your review.
We have included a “Notice to Unit Owners” to help the BOD supply information to the HOA.
Sincerely,
Chinquapin HOA
Insurance Coverage Summary 2020-2021 Civil Code 5300 (b)(9)
GENERAL LIABILITY INSURANCE
• Name of Insurer: United States Liability Company • Effective Date of Policy: 12-15-2020 to 12-15-2021
• Limits of Liability: $1,000,000 per Occurrence/$2,000,000 Annual Aggregate • General Liability Deductible: None
• Did the Agent/Broker assist the Association in the development of the General • Liability Policy Limits? Yes
• If yes, were the recommendations of the Insurance Agent/Broker followed? Yes DIRECTORS & OFFICERS LIABILITY INSURANCE
• Name of Insurer: CNA Insurance Company • Effective Date of Policy: 12-15-2020 to 12-15-2021
• Limits of Liability: $1,000,000 per Loss/$1,000,000 Each Policy Year • Deductible: $1,000
UMBRELLA LIABILITY INSURANCE (EXCESS OF A AND B LIMITS) • Name of Insurer: CNA Insurance Company
• Effective Date: 12-15-2020 to 12-15-2021
• Limits of Liability: $10,000,000 per Occurrence / $10,000,000 Annual Aggregate • SIR Limit - $10,000
PROPERTY INSURANCE
• Name of Insurer: Westchester Insurance Company – ETAL • Effective Date of Policy: 12-15-2020 to 12-15-2021 • Property Coverage Limits: $125,000,000
• Property Coverage Deductible: $100,000
• Person or Entity responsible to pay the Property Insurance Deductible in the • event of a Loss: COMMON AREA ASSOCIATION/UNIT INTERIOR=OWNER • Does the Property Insurance extend to the Real Property Improvements of • Separate Interest? YES
FIDELITY BOND INSURANCE
• Name of Insurer: CNA Insurance Company • Effective Date of Policy: 12-15-2020 to 12-15-2021 • Limits of Coverage: $2,000,000
Page 2
WORKERS COMPENSATION
• Name of Insurer: Pennsylvania Insurance
• Effective Date of Policy: 12-15-2020 to 12-15-2021 • Limits of Coverage: $1,000,000
AUTO INSURANCE
• Name of Insurer: United States Liability Company • Effective Date of Policy: 12-15-2020 to 12-15-2021
• Limits of Liability: $1,000,000 per Occurrence/$2,000,000 Annual Aggregate • General Liability Deductible: None
• Did the Agent/Broker assist the Association in the development of the General • Liability Policy Limits? Yes
• If yes, were the recommendations of the Insurance Agent/Broker followed? Yes EARTHQUAKE INSURANCE
• Not with Agency FLOOD INSURANCE
Notice to Unit-Owners 12/15/2020 Coverage Chinquapin HOA
• Master Policy – this is the insurance policy taken out by the association to fulfill its obligation per the CC&R’s. It typically covers the common areas which may or may not include buildings depending on whether the association includes multi-family or single-family structures.
• HO6 or “Condo Unit Owners Policy” – This is the insurance policy which the individual unit owner takes out to cover their personal exposures.
• Deductible: This is the amount of loss which must be exceeded before the policy pays. The Master and unit-owner policy (HO-6) will have a “deductible” for property losses.
Your master policy has a deductible of $100,000. Your HO6 “unit owner policy” deductible – check your policy. HOA master policies for association’s does not cover the personal property, loss of use (or rental income) and personal liability of unit owners and their tenants.
The CC&R’s outline what the HOA is required to insure for all the members. There are several types of CC&R provisions:
1. Bare walls - means that the insurance for the HOA covers the building structures, up to the uncovered sheetrock and sub-floor. They do not insure the paint on the walls, the carpet on the floors, or interior fixtures such as cabinets, toilets, and countertops.
2. Original Construction – this is the most common form seen. It dictates that the association must insure the entire real estate project up to the level of original construction. Any improvements to the unit owner would need to be insured by the unit owner.
3. Walls In - means that the HOA does provide insurance coverage for paint, carpet, and cabinets. Most governing documents requiring this type of coverage state that, in the event of a loss, the insurance for the association should pay to replace the unit back to its original condition. Upgrades to the unit would need to be insured under the HO-6 policy.
4. All inclusive – This CC&R form dictates that the association must insured the entire real estate whether there have been unit owner improvements or not.
INSURANCE DISCLOSURE REQUIREMENTS – REQUIRED WORDING Davis-Stirling Act Civil Code §5300.
[Old: Civ. Code §1365(f)(4)]
A summary of the association’s property, general liability, earthquake, flood, and fidelity insurance policies. For each policy, the summary shall include
• Name of the insurer • Type of insurance • Policy limits • Deductible, if any.
To the extent that any of the required information is specified in the insurance policy declaration page, the association may meet its obligation to disclose that information by making copies of that page and distributing it with the annual budget report.
The summary distributed pursuant to this paragraph shall contain, in at least 10-point boldface type, the following statement:
This summary of the association’s policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the association’s insurance policies and, upon request and payment of reasonable duplication charges obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary the association’s policies of insurance may not cover your property, including personal property or real property improvements to or around your
Unit Owners – HO-6 Insurance Policies Building – Interior walls, texture, wall coverings and fixtures
Upgrades – CC&R’s dictate the coverage required by the Master Insurance Policy. Upgrades are changes from the original construction.
Loss Assessment – Covers the unit-owners deductible on a covered loss or assessments for an insurance loss. *Chinquapin HOA has a deductible on all covered losses of $ 100,000, we recommend all unit-owners have $100,000 of interior building coverage and loss assessment.
Personal property – Furniture and personal items.
Loss of use – Pays for temporary living conditions if your unit is damaged by a covered loss. Personal liability – coverage for personal injury.
Earthquake Loss Assessments Coverage
By law in CA, all HO-6 Condo policies are required to offer Earthquake insurance. Breakout of coverage • Building Coverage
• Contents • Loss of use • Loss Assessment
• Building Code Upgrade - Included
Chinquapin HOA - Unit Owner,
Effective December 15, 2020 your Board of Directors approved the association insurance policy with our agency. This policy covers the residences and common areas in your association.
The insurance policy has a $100,000 deductible.
In addition, each unit owner is responsible for his/her own personal Contents Coverage, Personal Liability, Loss Assessment coverage and/or Loss of Use or Rents if the unit is a rental.
If you are a UNIT OWNER:
We recommend that all unit owners purchase a Condominium Unit Owners property and liability insurance policy “HO-6” to cover gaps in insurance coverage which may arise.
Some coverages to inquire about are: 1. Personal Liability
2. Contents coverage for your personal property. 3. Building coverage for the interior of the unit. 4. Loss assessment coverage.
If you are a UNIT OWNER WHO RENTS A UNIT TO ANOTHER PARTY: Some coverages to inquire about are:
1. Personal Liability
2. Contents coverage for your personal property. 3. Building coverage for the interior of the unit. 4. Loss assessment coverage.
5. Loss of rents coverage
6. AirBNB coverage, most carriers do NOT cover any loss from this type of rental
Chinquapin HOA – December 2020
The Claims Process
If you experience a claim in your unit, you should report it as soon as possible to your HOA manager and HO-6 insurance policy. After review, the manager will contact our office if the master policy needs to be triggered. Prevent any further loss or damage such as calling an emergency services and turn off the water.
The more information you have the better. Things like pictures, estimates, and witness statements. Once the claim is reported the insurance carrier, it will be assigned to an adjuster who will be the main contact for the claim.
If you have any questions regarding the existing policy or claims, please contact us: Andy Sinclair – 925.314.1212 ext 84 or email – [email protected]
