General Liability (GL)

What it covers:
General Liability insurance protects the company itself against claims from third parties (people outside the organization).

Typical claims:
- Bodily injury (e.g., a customer slips and falls)
- Property damage (e.g., you damage a client’s equipment)
- Personal & advertising injury (e.g., libel, slander, copyright infringement in ads)

Who’s protected:
The business (and employees acting within their job duties)

Example:
A visitor trips in your office and sues for medical expenses → General Liability responds.

Directors & Officers (D&O) Liability

What it covers:
D&O insurance protects the personal assets of directors and officers (and sometimes the company) when they’re sued for management decisions.

Typical claims:
- Breach of fiduciary duty
- Mismanagement
- Failure to comply with regulations
- Misleading statements to investors
- Employment-related governance issues (in some cases)

Who’s protected:
- Directors
- Officers
- Sometimes the company itself (depending on coverage section)

Example:
Shareholders sue the board for poor financial oversight → D&O responds.

Directors & Officers (D&O) coverage is a type of insurance that protects a company’s directors and officers—and often the company itself—against claims that arise from decisions or actions taken while managing the organization.

In plain English: it helps cover the legal costs and potential settlements if someone says leadership mismanaged, made a bad decision, or failed to do their job properly.

What D&O typically covers
D&O insurance generally pays for:
- Legal defense costs (often the biggest expense)
- Settlements and judgments
- Claims alleging:
- Breach of fiduciary duty
- Mismanagement or negligence
- Errors in strategic or financial decisions
- Misleading statements or disclosures
- Failure to comply with laws or regulations

Who is protected
Depending on the policy, coverage can include:
- Directors and officers (personal protection)
- The company itself (when it indemnifies leaders or is named in certain claims)
- Board members (including outside or volunteer directors, common in nonprofits)

Who might sue
Claims can come from:
- Shareholders or investors
- Employees (for governance-related issues)
- Regulators or government agencies
- Creditors (especially in bankruptcy situations)

What D&O does not cover
Most D&O policies exclude:
- Fraud or intentional illegal acts (once proven)
- Personal profit or illegal remuneration
- Bodily injury or property damage (that’s General Liability)
- Professional mistakes (that’s Professional / E&O insurance)

Why D&O matters
- Directors and officers can be personally named in lawsuits
- Even unfounded claims can cost six figures to defend
- Many qualified board members won’t serve without D&O protection
- Investors and regulators often expect it

Simple example
A company’s shareholders claim the CEO and board failed to properly disclose financial risks, leading to losses. Even if the leadership did nothing wrong, D&O insurance helps pay for the legal defense.

D&O (Directors & Officers) insurance covers claims alleging wrongful acts in the management or governance of an organization. In practice, it mainly pays for legal defense costs and, if needed, settlements or judgments.

Here’s the clear breakdown:

What D&O does cover
D&O typically responds to claims alleging:
- Management & governance issues
- Breach of fiduciary duty
- Mismanagement or negligence
- Poor oversight or failure to supervise
- Bad business or strategic decisions
- Disclosure & compliance
- Misleading or incomplete statements
- Failure to disclose financial or operational risks
- Regulatory or compliance failures
- Financial & investor-related claims
- Shareholder or investor lawsuits
- Claims from creditors (often in bankruptcy situations)
- Employment-related governance claims (sometimes included)
- Wrongful termination tied to management decisions
- Discrimination or retaliation at the executive/board level

What costs are covered
- Attorney fees and legal expenses
- Court costs
- Settlements and judgments (where legally insurable)

Who is protected
- Depending on the policy:
- Directors and officers
- Board members (including outside or volunteer directors)
- The company itself (in certain claims)

What D&O does not cover
Most policies exclude:
- Bodily injury or property damage (General Liability)
- Professional mistakes in delivering services (E&O)
- Fraud, intentional misconduct, or illegal profit (once proven)
- Criminal fines or penalties
- Claims already known before the policy started

Simple way to remember it
- D&O covers “decisions.”
- General Liability covers “accidents.”
- Professional Liability covers “services.”

Quick example
Investors sue the board claiming leadership failed to properly manage cash flow and disclose risks. Even if the case has no merit, D&O pays for the defense.

Hired/Non-Owned Auto Liability (often shortened to HNOA) is a type of business insurance that protects a company when vehicles are used for business but the business doesn’t own them.

Here’s the plain-English breakdown:

What it covers
It provides liability coverage if someone gets injured or property is damaged because of an accident involving:
- Hired autos – vehicles your business rents, leases, or borrows (like a rental car for a work trip)
- Non-owned autos – employees’ personal vehicles used for work (running errands, client visits, deliveries, etc.)

What it pays for
If your business is sued after an accident, HNOA can help cover:
- Bodily injury to others
- Property damage to others
- Legal defense costs

What it does not cover
This is the part people often miss:
- It does not cover damage to the vehicle itself
- It does not replace personal auto insurance
- It usually does not cover the employee personally—it protects the business
The driver’s personal auto policy is still primary. HNOA kicks in to protect the company if it’s pulled into the claim.

Who typically needs it
- Businesses with employees who drive their own cars for work
- Companies that rent cars for business travel
- Small businesses without a company-owned vehicle fleet
- Nonprofits, consultants, real estate firms, home health agencies, etc.

Simple example
An employee uses their own car to visit a client, causes an accident, and the injured party sues both the driver and the company.
- The employee’s personal auto insurance responds first
- Hired/Non-Owned Auto Liability protects the business from liability and legal costs

Even if your business has no employees, you might still need Workers’ Compensation in certain situations:

1. Owner Coverage – Some states allow or require business owners, partners, or officers to elect coverage for themselves.
2. Contractors or Volunteers – If you use independent contractors or volunteers, some states’ laws may require coverage for them in case of injury.
3. Legal Compliance – Certain industries or contracts (especially construction, manufacturing, or government contracts) may require proof of Workers’ Comp coverage even without employees.
4. Optional Protection – Even if not legally required, coverage can protect you personally if you get injured on the job.

Workers’ compensation exists to solve a very specific problem: work injuries are expensive, unpredictable, and legally risky. Work comp creates a clear, structured way to handle that risk for both workers and businesses.

Here’s the full picture.

Why workers’ compensation is needed
1. People get hurt at work — even in “low-risk” jobs
Work injuries aren’t just construction accidents. They include:
- Slips and falls
- Repetitive stress injuries (carpal tunnel, back issues)
- Lifting injuries
- Auto accidents while working
- Exposure to chemicals, illness, or hazardous environments
Without workers’ comp, someone has to pay for medical bills and lost income. That “someone” usually ends up being the business.

2. It pays for medical care and lost wages
Workers’ comp typically covers:
- Medical treatment
- Hospital visits and prescriptions
- Physical therapy and rehabilitation
- Partial wage replacement while the worker recovers
- Disability benefits (temporary or permanent)
- Death benefits for surviving family members
This happens without the injured person needing to prove fault.

3. It protects the business from lawsuits
This is the part many business owners miss.
Workers’ comp is a trade-off:
- The injured worker gets guaranteed benefits
- In exchange, they usually give up the right to sue the employer
Without workers’ comp:
- An injured worker can sue for negligence
- Lawsuits can include pain and suffering, legal fees, and punitive damages
- One injury can financially destroy a small business
Workers’ comp acts like a legal shield.

4. It’s required by law in most states
Most states mandate workers’ comp once you have employees, because:
- Injured workers shouldn’t rely on personal health insurance or lawsuits
- States don’t want injured workers ending up on public assistance
- It standardizes how workplace injuries are handled
Penalties for not carrying required coverage can include:
- Fines
- Stop-work orders
- Personal liability for medical costs
- Criminal charges in extreme cases

5. It also protects workers
From the worker’s perspective, workers’ comp:
- Pays benefits quickly
- Doesn’t require hiring a lawyer
- Covers injuries even if the worker made a mistake
- Provides income while they can’t work
Without it, workers may be stuck waiting on a lawsuit or denied coverage entirely.

6. Why businesses without employees are sometimes told they “need” it
Even if a business has no employees, workers’ comp may still be needed because:
- Owners are automatically counted as employees unless they opt out
- Independent contractors may legally be considered employees
- Clients or contracts require proof of coverage
- Certain industries (like construction) are heavily regulated
- It provides coverage if the owner is injured on the job
In these cases, it’s about risk management, not just legal compliance.

The big picture
Workers’ comp exists to:
- Take emotion and uncertainty out of work injuries
- Ensure injured workers are cared for
- Prevent lawsuits from wiping out businesses
- Create a predictable, regulated system everyone understands
That’s why states, insurers, and businesses treat it as essential—even when it feels unnecessary at first glance.

Medical Payments (MedPay) is a type of insurance coverage that pays for medical expenses if someone is injured in an accident, regardless of who is at fault. It’s often included in auto insurance and sometimes in general liability policies.

Here’s a clear breakdown:

1. What it covers
- Medical bills for injuries, such as:
- Hospital visits
- Doctor fees
- X-rays, surgeries, and ambulance rides
- Rehabilitation or therapy
- Usually covers the policyholder, passengers, and sometimes pedestrians in auto accidents.

2. Key features
- No-fault coverage: It pays regardless of who caused the accident.
- Limited coverage: Typically covers only medical costs, not lost wages or property damage.
- Small amounts: Coverage limits are usually modest (e.g., $1,000–$10,000 per person per accident).

3. Difference from liability
- Liability insurance: Pays other people if you cause injury or damage.
- Medical Payments insurance: Pays anyone injured, including you or your passengers, without assigning blame.

4. Why it’s useful
- Covers small accidents without filing a liability claim
- Helps pay deductibles and co-pays for injuries
- Can protect you from lawsuits if medical bills are minor

Example:
If your employee slips on your property and injures themselves, MedPay (if included in your business or auto policy) could pay their immediate medical bills even before fault is determined.

A Finance Agreement is a formal contract between the insurance company (or a finance provider) and the policyholder that allows the policyholder to pay premiums in installments rather than paying the full amount upfront. It’s commonly used for annual or large premium policies where paying in one lump sum could be difficult for the client.

Key Elements of an Insurance Finance Agreement:
1. Premium Amount
- The total cost of the insurance policy that will be financed.
2. Repayment Schedule
- How often payments are due (monthly, quarterly, or semi-annually).
3. Interest or Fees
- Some agreements charge a small fee or interest for paying over time instead of upfront.
4. Term of the Agreement
- The duration over which the payments will be made (often aligned with the policy term).
5. Consequences of Non-Payment
- Missed payments can lead to policy cancellation or additional fees, and the insurer may report defaults to credit agencies.
6. Legal Obligations
- The agreement is legally binding, meaning the policyholder is responsible for paying according to the terms.

Why it’s used:
- Makes insurance more affordable for clients by spreading the cost over time.
- Helps insurers collect premiums consistently without requiring full upfront payment.
- Ensures both parties understand the payment obligations and schedule, reducing disputes.

Example:
A business wants a $12,000 annual liability insurance policy but can’t pay it all at once. Through a Finance Agreement, the insurer allows them to pay $1,000 per month for 12 months, with clear terms about fees, late payments, and consequences.

You need Crime/Fidelity coverage to protect your business from financial loss due to dishonest acts by employees or others.

Specifically, it covers:
- Theft or embezzlement of money, securities, or property
- Fraudulent or dishonest acts by employees
- Forgery or alteration of documents
- Sometimes losses from computer fraud or cyber theft
Without it, if an employee or trusted person steals from your business, you could lose the money and have no insurance to recover it.

Example:
An employee steals cash from your register or submits false expense reports — Crime/Fidelity coverage can reimburse your business for the loss.

1. Guaranteed Replacement Cost (GRC)
- Pays the full cost to rebuild or repair your property, regardless of policy limit.
- The insurer guarantees that you can fully rebuild your home to its pre-loss condition, even if construction costs skyrocket.
- Example: $300,000 policy, rebuilding costs $500,000 → insurer pays the full $500,000.

2. Extended Replacement Cost (ERC)
- Pays over the policy limit by a certain percentage (often 20–25%) if rebuilding costs exceed your limit due to sudden increases in construction costs.
- Helps cover unexpected spikes in material or labor costs.
- Example: Same $300,000 policy, rebuilding costs $350,000, and ERC is 25% over limit → insurer may pay up to $375,000, covering the extra $50,000.

3. Standard Replacement Cost (SRC)
- Pays up to the policy limit to repair or replace damaged property with materials of similar kind and quality.
- If rebuilding costs exceed your policy limit, you pay the extra out-of-pocket.
- Example: Your home is insured for $300,000, but after a fire, rebuilding costs $350,000 → you cover the $50,000 difference.

Blanket Replacement Cost is an insurance policy feature that combines coverage limits for multiple properties or types of property into a single “blanket” limit, rather than having separate limits for each item or location.

Key points:
- Covers multiple buildings, structures, or contents under one total limit.
- Provides flexibility: if one property is underinsured, the excess coverage can apply to another.
- Useful for businesses with multiple locations or homeowners with multiple structures.

Example:
A business has two buildings insured under a $1 million blanket limit. If one building is destroyed for $700,000, the remaining $300,000 can be used for repairs to the other building, even if its individual value exceeds a traditional per-building limit.

Replacement cost is determined by calculating how much it would cost to repair or rebuild the damaged property with materials of similar kind and quality, at current prices, without deducting for depreciation.

Key factors insurers consider:
1. Construction type and materials – wood, brick, steel, etc.
2. Size and layout – square footage, number of rooms, features
3. Local construction costs – labor rates, material costs in your area
4. Upgrades or special features – custom finishes, fixtures, or equipment
5. Code or building requirements – updates needed to meet current regulations

Example:
If your home burns down, replacement cost is the current cost to rebuild it exactly as it was, even if it was built decades ago, without subtracting for age or wear.

Replacement Cost: Covers the cost to repair or rebuild a specific property or item with similar materials, up to its individual limit.

Blanket Replacement Cost: Combines coverage for multiple properties or items under a single limit, allowing the funds to be used where needed for full replacement.

Property appraisals are recommended for insurance because they provide an accurate, professional valuation of a property, ensuring your coverage is sufficient to fully rebuild or replace it.

Key reasons:

1. Determine correct coverage limits – Prevents underinsurance or overinsurance.
2. Accurate replacement cost – Appraisers account for construction type, materials, size, and local building costs.
3. Support claims – Provides documentation if a claim arises after damage or loss.
4. Identify special features – Custom finishes, unique structures, or upgrades that affect value.
5. Comply with lender requirements – Many mortgage lenders require an appraisal for insurance purposes.

Example: Without an appraisal, your home might be insured for $300,000, but rebuilding could cost $400,000 after a fire, leaving you $100,000 short.

Property value is typically evaluated based on replacement cost, not market value.

Insurers look at:
1. Construction details – materials, quality, and building type.
2. Size and layout – square footage, number of rooms, and features.
3. Local construction costs – labor and material costs in your area.
4. Upgrades or special features – custom finishes, fixtures, or systems.
5. Building codes and regulations – costs to meet current codes if rebuilding.

Key point: They calculate how much it would cost to rebuild or repair the property today, not what it would sell for on the real estate market.

Association Contents refers to the personal property or common-use items owned by a homeowners’ or condo association that are covered under the association’s insurance policy.

Key points:

- Includes furniture, equipment, appliances, and supplies in shared areas (like lobbies, gyms, or clubhouses).
- Covers items used by all residents, not personal belongings of individual unit owners.
- Helps pay to repair, replace, or restore these items if damaged by covered perils (fire, theft, vandalism, etc.).

Example: If a fire damages the gym equipment or lounge furniture in a condo complex, association contents coverage would pay to replace those items.

Loss of Income insurance (also called Business Income Coverage) protects a business if it can’t operate and earn money due to a covered event, like a fire, storm, or other property damage.

Key points:

- Reimburses lost profits during the downtime.
- Pays for ongoing expenses like rent, payroll, and utilities while the business is closed.
- Often includes coverage for extra expenses needed to resume operations faster.

Example: A restaurant closes for two months after a fire. Loss of Income coverage helps pay lost revenue and bills during that period.

The change from “All-In” coverage to “Original Specs” coverage usually reflects a difference in what the policy will pay to rebuild or repair your property:

- All-In Coverage: Pays to rebuild or repair the property regardless of original materials, design, or upgrades. It may cover custom finishes, improved materials, or changes from the original design.
- Original Specs Coverage: Pays only to restore the property to its original specifications, using similar materials and design as when it was first built, without covering upgrades or improvements made since then.

Why the change:
- The insurer may be adjusting your policy to reduce risk or premium costs.
- “Original Specs” coverage usually has a lower premium because it limits what the insurer will pay.
- Any upgrades, custom features, or higher-quality materials you added may not be fully covered under the new policy.

If the HOA has a “Bare Walls” policy, it only covers the structure up to the interior walls (not inside your unit). As a homeowner, you need:

1. Dwelling/Interior Coverage: To insure everything inside your unit, including:
- Flooring, cabinets, countertops
- Appliances and fixtures
- Interior walls, ceilings, and upgrades you’ve made

2. Personal Property Coverage: To protect your furniture, electronics, clothing, and other belongings.

3. Liability Coverage: In case someone is injured inside your unit or you cause damage to others.

Quick tip: A “Bare Walls” HOA policy means you’re responsible for all upgrades and interior finishes inside your unit.

Bare Walls is a type of condo or HOA master policy that covers the building’s structure itself, but only up to the interior surfaces of individual units. It does not cover anything inside your unit—that responsibility falls on the homeowner.

What it typically covers:
- Exterior walls, roof, and foundation
- Common areas like lobbies, hallways, and shared facilities
- Structural components of the unit (e.g., studs, plumbing inside walls)

What it does not cover (homeowner’s responsibility):
- Interior walls, ceilings, and flooring finishes
- Cabinets, countertops, appliances, and fixtures
- Personal belongings like furniture, electronics, and clothing
- Improvements or upgrades made by the homeowner

Why it matters:
- If a fire, water leak, or other damage occurs inside your unit, **the HOA policy only pays to repair the “bare walls”**.
- Homeowners must carry a **HO-6 (condo) policy** to protect interiors, personal property, and liability.

Example:
If a fire damages your unit, Bare Walls coverage will replace the studs, drywall base, and plumbing in the walls—but not your custom kitchen cabinets or hardwood floors. Your HO-6 policy would cover those items.

For a Homeowner (HO-6) policy, which is designed for condo owners, coverage focuses on what the HOA’s Bare Walls policy does not cover.

Key Coverage Areas:

1. Dwelling/Unit Interior
- Covers interior finishes and improvements inside your unit, such as:
- Flooring, ceilings, walls, and cabinetry
- Countertops, fixtures, and built-in appliances
- Upgrades or renovations you made

2. Personal Property
- Protects your belongings, including furniture, electronics, clothing, and valuables.

3. Liability Protection
- Covers injuries to others in your unit or damages you accidentally cause to other units.

4. Loss of Use / Additional Living Expenses
- Pays for temporary housing and extra living costs if your unit is uninhabitable due to a covered loss.

Grills can be a liability and fire risk, so insurers often have specific rules:

Key points:

1. Covered vs. Excluded:
- Many home or condo policies cover damage caused by a grill (like a fire) if used properly.
- Some policies exclude certain types, especially propane or charcoal grills on balconies in condos or apartments.

2. Safety Requirements:
- Insurance companies often require grills to be **used outdoors** and **away from structures**.
- Following local fire codes and HOA rules helps ensure coverage.

3. Liability:
- If a grill causes a fire that injures someone or damages property, your liability coverage (from homeowners or HO-6 policy) may pay claims.

Example: A balcony grill causes a fire that damages your condo unit and a neighbor’s unit. Your HO-6 policy’s **liability and dwelling coverage** may respond—if the grill use was allowed by local/HOA rules.

To ensure the fastest service for closings and refinancing, we utilize EOI Direct, a 24/7 automated delivery system.

Online: Go to https://www.eoidirect.com/GetStarted.aspx. You can search for your association and download the certificate immediately.

Phone: If you need assistance, you can call their help desk at (877) 456-3643.

Why use this? Lenders frequently need specific language or immediate proof of coverage to close a loan. This system allows you (or your mortgage officer) to get exactly what is needed instantly, rather than waiting for an agent to manually process the request during business hours.

The Quick Analogy: Think of it like using an ATM instead of waiting in line for a Bank Teller. If you need cash (Proof of Insurance) right now—perhaps on a weekend or late at night—you don't want to wait for the bank to open. EOI Direct is the ATM that gives you exactly what you need, instantly and securely, 24/7.

1. Occurrence
- The maximum amount an insurer will pay for a single claim or incident.
- Applies per event.
- Example: $1 million occurrence limit → if one accident happens, the policy pays up to $1 million for that claim.

2. Aggregate
- The maximum amount an insurer will pay for all claims during the policy period (usually one year).
- Covers multiple claims combined.
- Example: $2 million aggregate limit → the total of all claims in a year cannot exceed $2 million, even if each claim is under the occurrence limit.

A Per Building Deductible is the amount a property owner must pay out of pocket for each building before insurance coverage kicks in after a loss.

Example:
If you have two buildings, each with a $5,000 per-building deductible, and both are damaged in a storm, you would pay $5,000 for each building before the insurer pays for repairs.

Here’s the distinction:

- Per Building Deductible: Applied separately to each building for each loss event. It’s not annual—you pay it each time a building is damaged.
- Per Occurrence Deductible: Applied per loss event, regardless of how many buildings are affected. Multiple separate events in a year would each trigger the deductible.

Key point: Neither is typically a one-time annual deductible—both reset with each covered loss or occurrence, but per building applies individually to each structure, while per occurrence applies to the event as a whole.

Per Building Deductible:
- Applies to: each individual building
- Paid when: each building suffers damage
- Example: 2 buildings damaged in a storm, $5,000 deductible - pay $5,000 for each building (total $10,000)
- Frequency: Deductible repeats per building per event

Per Occurrence Deductible
- Applies to: the entire event/loss, no matter how many buildings are damaged
- Paid when: each covered loss/event occurs
- Example: Same storm, $10,000 deductible per occurence - pay $10,000 total, regardless of how many buildings were damaged
- Frequency: Deductible repeats per event, not per building

An occurrence under the property deductible is any single event or incident that causes covered damage.

- It can be one specific event, like a fire, storm, or burst pipe.
- All damage resulting from that event is considered one occurrence, and one deductible applies.
- Separate events (e.g., two different storms on different days) are treated as separate occurrences, each triggering its own deductible.

Here are typical average cost ranges homeowners might expect for sewer backup and sump pump failure-related damage (before insurance):

Sewer Backup
- Minor sewer backup cleanup and repairs are often about $500 – $2,000.
- More extensive damage (major repairs, structural restoration, finished basement cleanup) can run $2,000 – $15,000+.
- Very severe cases with widespread contamination can exceed $50,000.

Sump Pump Failure
- Basic repair costs for a failed sump pump typically range from about $300 – $800+, depending on the issue and type of pump.
- Full replacement of a sump pump can average roughly $800 – $1,600, though simple units may be lower and emergency services or backup systems higher.

Note: Actual costs vary widely by region, severity of damage, whether cleanup/mold remediation is needed, and whether you have the appropriate water/sewer backup endorsement on your homeowners policy.

It depends on the policy, but generally:

- Sewer backup coverage is usually per building/unit, meaning the deductible and limits apply to each affected property.
- Sump pump failure coverage can vary:
- If it damages an individual unit, it’s often per building/unit.
- If it’s part of a shared system (like a community sump or drainage system), the HOA or association policy may cover it for the entire community.

Key point: Check whether the policy is a unit-owner (HO-6) policy or an association/master policy, because that determines whether the coverage and deductible apply per building or community-wide.

The Undamaged Property Exclusion is a clause that prevents the policy from paying to repair or replace parts of a building or property that were not damaged in a covered loss.

Key points:
- Applies when only part of a property is damaged.
- The insurer may only pay for the damaged portion, not for replacing or matching undamaged sections.
- Common in policies where matching materials or aesthetics could be expensive.

Example:
If a fire damages one wall of your brick home, the insurer may only pay to rebuild the damaged wall, not to replace the undamaged bricks around it to match perfectly.

Coverage C: Increased Cost of Construction is an insurance add-on that helps pay for additional expenses to bring a damaged building up to current building codes during repairs or rebuilding.

Key points:

- Triggered when a loss occurs and building codes have changed since the structure was built.
- Covers costs such as:
- Updating wiring, plumbing, or HVAC to meet current codes
- Adding fire sprinklers or other mandated safety features
- Making structural improvements required by law
- Does not cover cosmetic upgrades unrelated to code compliance.

Example:
A fire destroys part of an older building. Current codes require stronger framing and new electrical standards. Coverage C helps pay the extra cost to meet these updated codes.

Demolition & Debris Removal – Undamaged Portion refers to insurance coverage that pays to remove debris or demolish parts of a building that weren’t directly damaged by the loss, but must be taken down to repair or rebuild the damaged sections safely.

Key points:

- Applies when undamaged parts of a structure need to be removed to rebuild the damaged portion.
- Covers demolition, labor, and disposal costs for those undamaged sections.
- Helps ensure repairs can be done safely and comply with building codes.

Example:
A fire damages part of a building, but to repair it, adjoining undamaged walls must be taken down. This coverage helps pay for removing those walls.

An example of Ordinance/Law coverage is when a building is damaged, and current building codes require upgrades that weren’t required when it was originally built.

Example:

- Your 1950s home suffers fire damage.
- Current codes require fire sprinklers, stronger electrical wiring, or wheelchair-accessible entrances.
- Ordinance/Law coverage helps pay the extra cost to meet these modern codes during rebuilding.

Yes. If Coverage B does not specify “per building,” the coverage amount typically applies to all structures in the community combined, rather than individually to each building.

Key point: Without a “per building” designation, the limit is a total for the entire community or all covered structures.

Terrorism Coverage protects against damage or loss caused by acts of terrorism, such as bombings or other violent acts intended to cause widespread harm.

Key points:

- Covers property damage, business interruption, and liability caused by a certified act of terrorism.
- Often optional, because standard property policies usually exclude terrorist acts.
- Can apply to commercial and residential properties, depending on the policy.

Example: If a terrorist attack damages a building, this coverage helps pay for repairs, rebuilding, or lost income.

Flood and earthquake coverage are usually not included in standard property insurance, so you need separate policies if your property is at risk.

- Flood insurance protects against water damage from rising water, heavy rains, or overflowing rivers.
- Earthquake insurance covers damage from earthquakes, tremors, or seismic activity.

Even if your area isn’t high-risk, lenders or local regulations may require one or both, and having coverage prevents potentially catastrophic out-of-pocket costs.

The Cosmetic Damage Exclusion is a clause that excludes coverage for damage that only affects the appearance of a property, not its function or structure.

How it works:

- If a covered event damages a property, but the damage is purely aesthetic (like scratches, dents, or paint discoloration) and does not affect the building’s safety or use, the insurer won’t pay to repair or replace it.
- The policy only covers functional repairs necessary to restore the property’s utility or structural integrity.

Example:
A hailstorm dents your metal siding or shatters decorative trim. If the siding and trim still protect the building properly, the insurer may only repair structural damage, leaving cosmetic dents or marks unrepaired.

A Cosmetic Exclusion Endorsement is a policy add-on that specifically excludes coverage for cosmetic or aesthetic damage.

- It formally limits the insurer’s obligation to pay only for repairs that restore the property’s function or structure, not its appearance.
- Typically applied to roofs, siding, or interior finishes where minor dents, scratches, or color changes don’t affect performance.

Example: If a hailstorm dents your roof but it still protects your home properly, this endorsement means the insurer won’t pay to fix the dents, only functional repairs if needed.

An ACV endorsement is an add-on that changes how a loss is paid. With this endorsement, the insurer agrees to pay only the actual cash value of damaged or destroyed property—not the full replacement cost.

Example
- Your 10-year-old roof is damaged by a storm
- New roof costs: $12,000
- Depreciation: $7,000
- ACV payout: $5,000 (minus deductible)

Without replacement cost coverage, you’re responsible for the difference.

Why insurers use ACV endorsements
- Older roofs or buildings
- Higher-risk properties
- To lower premiums
- When replacement cost coverage isn’t offered

Where you’ll see it
- Roof coverage endorsements
- Commercial property policies
- Some homeowners policies in hail- or wind-prone areas

Admitted vs. non-admitted refers to how an insurance company is regulated by a state.

Admitted insurance
- Carrier is licensed and regulated by the state
- Policies are state-approved
- Backed by the state guaranty fund if the insurer fails

Non-admitted insurance
- Carrier is not licensed in that state
- Used for hard-to-insure or high-risk situations
- No guaranty fund protection

Many insurers offer loyalty/tenure discounts or preferred pricing tiers that improve the longer you stay. If you switch carriers frequently, you may:

- Lose longevity or loyalty discounts
- Be rated as a “new business” risk (often slightly higher)
- Miss out on preferred underwriting tiers reserved for long-term customers

That said, switching occasionally—especially for better coverage or a big premium savings—is often worth it. The real downside shows up when switching every year without a strong reason.

How insurers view frequent switching
- Stability matters: Long tenure with one carrier suggests predictability and lower administrative risk.
- New business pricing: Switching often means you’re repeatedly rated as “new business,” which can be higher than renewal pricing.
- Adverse selection concerns: Underwriters may worry that frequent switchers are moving carriers after losses, premium increases, or coverage restrictions.

When it does raise red flags
- Switching every year or two with no clear reason
- A history that lines up with claims, non-renewals, or underwriting changes
- Commercial or specialty policies, where underwriting is more relationship-driven

When it usually doesn’t hurt you
- Switching occasionally (every few years)
- Moving for clear reasons like better coverage, major savings, or carrier exits from a market
- Personal lines with clean loss histories (auto/home)

Line-of-business differences
- Auto & home: Mild impact; claims history matters far more than tenure
- Commercial insurance: More weight on continuity and carrier relationships
- Specialty/high-risk lines: Switching is expected and less penalized

Bottom line
Insurers care more about claims history, property condition, and exposure quality than loyalty—but constant hopping can chip away at preferred pricing and underwriting goodwill over time.

In general, you start a claim by notifying your insurance company as soon as possible. The usual steps look like this:

1. Contact the insurer
- Call the claims number on your policy
- Or file online / through the carrier’s app
- Or go through your agent or broker

2. Provide basic details
- Policy number
- Date and cause of loss
- What was damaged or happened
- Contact info and location

3. Document the loss
- Photos/videos
- Receipts or estimates if you have them
- Police report (for theft, auto accidents, vandalism)

4. Cooperate with the adjuster
- An adjuster may call, inspect, or request more info
- They determine coverage and payout

5. Receive payment or resolution
- Subject to coverage limits, deductibles, and endorsements (like ACV vs replacement cost)

An ACV Endorsement means your insurance will pay Actual Cash Value (ACV) for a covered loss—replacement cost minus depreciation—instead of the full cost to replace.

Even if your roofs are newer than 15 years, the endorsement could still apply if your policy specifically limits coverage to ACV for certain items or roof types. Essentially, it means the insurer may subtract depreciation from your payout, which could reduce what you receive if a claim occurs, regardless of age.

Yes, it matters. An “admitted carrier in MN” is licensed and regulated by Minnesota’s Department of Commerce. That means:

- Policies are state-approved
- The carrier must follow state rules on rates and coverage
- State guaranty fund protection applies if the insurer fails

A non-admitted carrier isn’t licensed in Minnesota, so coverage is more flexible but not backed by the state guaranty fund.

Coinsurance
- You and the insurer share the risk if the property isn’t insured for its full value.
- Usually a percentage (like 80% or 90%) of replacement cost must be covered.
- If you underinsure, you may get less than the full claim.

Agreed Amount
- You and the insurer pre-agree on the value of the property.
- Full claim is paid up to that agreed amount, regardless of depreciation or coinsurance formulas.

90% coinsurance means your property must be insured for at least 90% of its full replacement value.

- If you meet or exceed 90%, a full claim is paid (minus deductible).
- If you insure for less than 90%, your claim is reduced proportionally.

Example:
- Replacement cost = $100,000
- Coverage = $80,000 (less than 90%)
- If a $20,000 loss occurs, payout = $20,000 × (80,000 ÷ 90,000) = $17,778

It’s a way insurers encourage proper coverage.

You typically start the renewal process 30–90 days before your policy expires.

To get it started, the insurer or broker usually needs:
- Current policy details (policy number, coverage limits, endorsements)
- Updated property info (any changes, improvements, or new risks)
- Loss history (claims since the last renewal)
- Any updated financials or documents for commercial policies

Once they have this, they can review coverage, adjust limits, and provide a renewal quote.

To bind coverage, the next steps are:

1. Review and approve the quote – confirm limits, deductibles, and endorsements.
2. Sign the application or binder agreement – this officially requests coverage.
3. Submit payment – usually the first premium or deposit.
4. Receive confirmation – the insurer issues a binder or policy showing coverage is active.

Once that’s done, your coverage is legally in effect.

Insurance carriers determine coverage limits based on the replacement cost of the property, not its market or resale value. They usually consider:

1. Replacement cost – how much it would cost to rebuild or repair the structure with like kind and quality materials.
2. Square footage and construction type – size, materials, and building features.
3. Local construction costs – labor and material rates in your area.
4. Building codes and updates – if rebuilding requires upgrades to meet current codes.
5. Endorsements or special features – e.g., pools, garages, or custom finishes.

So even if your unit “feels” worth less on the market, coverage is based on what it would cost to rebuild, which can be higher than market value.

To determine if your crime coverage limits are sufficient, consider:

1. Total cash, checks, and securities exposure – how much could be stolen or fraudulently taken at once.
2. Number of employees handling money or valuables – more people can increase risk.
3. Past losses or industry trends – claims history can indicate risk levels.
4. Third-party contracts or requirements – some clients or lenders may require minimum coverage.
5. Business continuity needs – coverage should allow recovery without crippling finances.

A common approach is to set the limit slightly above your maximum exposure plus a buffer for unexpected situations. Your broker or insurer can run a risk assessment to recommend a specific limit.

Modified Original Specs: Coverage allows rebuilding with updates or modern materials, meeting current building codes or standards, rather than duplicating outdated original construction.

Original Specs: Coverage will rebuild or repair the property exactly as it was originally built, using the same materials, layout, and features.

Bare Walls (typically covered by condo association master policy)
- Structural elements: exterior walls, roof, floor slab, foundation
- Plumbing, electrical, and HVAC inside common areas
- Fixtures included in common/shared spaces

Unit Owner HO6 (your responsibility)
- Everything inside your unit not covered by master policy:
- Interior walls, flooring, cabinets, countertops
- Appliances, personal property, upgrades/renovations
- Interior plumbing/electrical/HVAC inside your walls if not covered by association
- Loss assessments if the master policy deductible applies

Original Specs
- Built and finished to the developer’s standard package
- Typically includes:
- Painted walls
- Installed flooring
- Basic lighting fixtures
- Standard kitchen cabinets, counters, and bathroom fittings
- Move-in ready (you might still upgrade finishes, but you don’t have to)
Think: “This is how the developer originally intended it to look.”

Bare Walls
- A much more stripped-down shell
- Usually means:
- Unpainted or primed walls only
- Little to no flooring
- Minimal or no lighting fixtures
- Kitchen/bathrooms may be incomplete or very basic
- Cheaper upfront, but you’re expected to finish or customize it yourself
Think: “Here’s the canvas—go wild (and budget accordingly).”

Here’s the usual next-step roadmap, kept practical:

1. Confirm what “Bare Walls” includes (in writing)
Ask exactly what you’ll get: walls, ceilings, flooring, plumbing points, electrical points, AC, bathrooms, kitchen—every detail. This avoids nasty surprises.

2. Set a finishing budget
Price out flooring, painting, lighting, kitchen, bathrooms, wardrobes, and labor. Bare Walls is cheaper upfront but can add up fast.

3. Get design + layout sorted early
Even a simple plan helps decide:
- Electrical outlets & lighting positions
- Plumbing changes
- Built-ins (wardrobes, kitchen, storage)

4. Check approvals & rules
Ask the developer / building management:
- What modifications need approval
- Allowed contractors
- Work hours and move-in rules

5. Line up contractors or a fit-out company
Get multiple quotes, timelines, and scope of work. Make sure they’ve worked in that building before if possible.

6. Agree on timeline & handover date
Coordinate handover → fit-out → move-in so you’re not paying rent + renovation at the same time.

7. Lock everything in writing
Specs, costs, deadlines, penalties, warranties. Boring but critical.

There’s no single fixed % savings figure published for associations switching to Bare Walls because costs depend heavily on things like location, building size, local insurance markets, and the specific finishes being excluded. However, here are the typical trends you’ll see with cost differences:

Insurance Cost Savings (Association)
- Bare Walls offers much lower master insurance premiums than broader coverage (like Original Specs or All-In) because the association only insures the structural shell and common elements, not interior finishes, fixtures, or appliances.
- Industry reporting suggests associations often select Bare Walls mainly to reduce their insurance costs significantly compared with broader policies, since covering interior items (floors, cabinets, built-ins) adds a lot of value to insure and thus raises premiums.
- While exact savings vary, anecdotal estimates in similar real-estate contexts show choosing base shell/blank policy options can cut costs substantially—sometimes 20–40% or more on premiums vs. more complete coverage (this is typical for core vs. fully fitted shells in commercial spaces, which illustrates the same principle).

What That Means in Practice
- Association savings come from lower insurance premiums and potentially reduced maintenance obligations.
- Owners may incur higher individual insurance costs, because unit owners need HO-6 or equivalent coverage to insure all interior elements that the association no longer covers.
- Net impact depends on how much interior coverage shifts from association to owners (it’s not “free”—the cost just moves).

Here’s the short, practical next-steps list:

1. Check the deadline on the nonrenewal notice (coverage end date).

2. Contact your insurance broker immediately to market replacement coverage.

3. Review current coverage and confirm if switching to Bare Walls is an option now.

4. Gather required docs (loss runs, financials, building info, prior policies).

5. Get board approval for coverage changes and budget impacts.

6. Notify owners early if Bare Walls or higher deductibles are likely.

7. Bind new coverage before expiration — no gaps.

While we can attempt to assist, carriers like AMFam, State Farm, and Farmers often require the insured party (the association or property manager) to submit the loss run request directly to them. This is often due to privacy and security protocols.

Here’s a concise list of proactive steps for associations:

1. Maintain a strong loss history – address issues promptly and document repairs.

2. Invest in preventive measures – security, fire alarms, sprinklers, roof maintenance.

3. Review deductibles and coverage limits – higher deductibles can lower premiums.

4. Consider Bare Walls coverage – reduces association’s insurable value.

5. Keep property values and replacements updated – avoid over- or under-insuring.

6. Bundle policies if possible – e.g., liability and property with one carrier.

7. Work with a knowledgeable broker – they can compare multiple carriers and negotiate.

8. Maintain clear governance and records – well-managed associations are viewed more favorably.

Removing Water/Sewer Backup/Sump Failure coverage can lower premiums, but it’s usually not recommended for associations.

Reasons:

- Water damage claims can be very expensive, especially from basement or mechanical areas.
- Most carriers may increase rates or decline coverage if you remove this protection.
- Losses from these perils can far exceed any short-term premium savings.

A safer approach to cut costs:
- Increase deductibles instead of removing coverage.
- Invest in preventive measures (sump pump maintenance, backflow valves, regular inspections).

Here’s why insurers often keep sump pump coverage even if you don’t currently have one:

1. Potential Future Risk – Even without a sump pump, water damage can occur from flooding, leaks, or backup, and the policy may cover it under the same clause. Removing it could leave gaps.
2. Policy Standardization – Many insurance policies are written with standard coverage items. Removing one can sometimes affect other parts of the policy or create exclusions you might not expect.
3. Compliance Requirements – Some lenders or lease agreements require certain coverage items, including sump pump or water backup protection, regardless of whether you currently have the equipment.
4. Cost vs. Risk – The premium for sump pump coverage is often relatively small compared to the potential cost of water damage, so insurers often advise keeping it.

In short, even if you don’t have a sump pump today, keeping the coverage protects against unexpected water damage and avoids policy complications.

It depends on your association rules and insurance coverage:

- Check the CC&Rs/bylaws – many associations require board approval for hot tubs.

- Check building restrictions – weight, structural support, and balcony safety.

- Notify your insurance broker – some carriers raise liability or property premiums if hot tubs are added.

If all requirements are met and the board approves, it can be allowed, but insurance and safety compliance are key.

Minimum Earned Premium (MEP) is the least amount of premium the insurer keeps if a policy is canceled before its full term.

- Even if you cancel early, the carrier keeps this amount.

- Usually expressed as a percentage of the annual premium.

- Protects the insurer from losing money on short-term cancellations.

Think: “This is the minimum the insurer earns no matter when the policy ends.”

To meet most current lending requirements, your association policy should generally include:
1. Coverage Type – usually Bare Walls (HO-6) coverage for units, property coverage for the building, and liability for common areas.
2. Replacement Cost Coverage – lenders often require full replacement cost on the building, not actual cash value.
3. Adequate Limits – property and liability limits must meet lender minimums.
4. Loss Assessment Coverage – protects owners if the association levies special assessments after a covered loss.
5. Deductible Levels – within acceptable limits for lenders.
6. No Major Exclusions – some lenders won’t accept policies that exclude key perils like fire, wind, or water.
7. Named Insured and Mortgagee Clause – the lender must be listed properly.
8. Current and Paid Premium – policy must be active and in good standing.
Most lenders also require a recent certificate of insurance showing all of the above.

The $150 processing fee is a one-time administrative charge to cover:

- Policy setup and issuance
- Endorsements or paperwork processing
- Credit card or electronic payment handling
- Recordkeeping and documentation

It’s not part of your premium—just the cost to get the policy formally issued.

Yes—having a sprinkler system usually lowers premiums because it reduces fire risk, which carriers view favorably.

The exact discount depends on:
- Type of sprinkler system (full vs. partial coverage)
- Building construction and occupancy
- Carrier guidelines and local fire protection standards

It won’t eliminate premiums but can meaningfully reduce them.

It’s not always required, but it’s strongly recommended for associations that:

- Use online banking or handle electronic payments
- Store member personal info (SSNs, emails, payment data)
- Communicate via email or portals

Cyber coverage protects against: data breaches, ransomware, fraud, and cyber liability.

If your association does little online business and keeps minimal data, it may be optional—but most modern associations carry it for safety.

Actual Loss Sustained (ALS) coverage is a type of insurance that only pays for losses that actually occur during the policy period and are discovered during that same period or an extended reporting window.

Key points:

- Often used for cyber or fidelity coverage.
- Covers real financial loss, not projected or estimated losses.
- Timing is critical—claims must be linked to the period the policy was in force.

Think: “We pay you only for what you actually lost while the policy was active.”

A. Options for Changing a Renewal Date
Insurance companies usually offer a few ways to adjust your renewal date, depending on your policy type:
1. Shift the Renewal Date
- You may request your insurer to move your policy’s renewal to a different month to better align with your budgeting cycle.
- Options include:
- Short-term extension or reduction of your current policy period to reach the new renewal date.
- Adjusting the premium payment schedule to match the new renewal timing.
- Be aware that some insurers might charge a small fee or require premium adjustment for the date change.
2. Change Payment Frequency
- If the goal is budgeting, some insurers allow you to change from annual to semi-annual or monthly payments instead of changing the actual renewal date.
3. Policy Rewriting
- In some cases, the insurer may need to issue a new policy effective on the desired renewal date, especially for complex policies like commercial or business insurance.

B. Next Steps
1. Review Your Policy
- Check your policy documents or online portal for rules on renewal date changes.
- Look for:
- Minimum/maximum policy term limits
- Notice period for renewal adjustments
- Fees or prorated premiums
2. Contact Your Insurance Provider
- Reach out to your agent, broker, or insurer’s customer service.
- Ask specifically:
- “Can we shift our renewal date to [desired date]?”
- “Would this affect our premium?”
- “Are there any fees or adjustments for changing the renewal date?”
3. Get Written Confirmation
- Ensure the insurer confirms the new renewal date in writing.
- Update your internal budgeting records and calendar to reflect the change.

Upgrading to high‑grade, impact‑resistant shingles (especially UL 2218 Class 4) can lead to a homeowners insurance discount, but it depends on your insurer, policy, and state.

What to expect:
• Many insurers offer discounts for impact‑resistant roofing materials, like Class 4 shingles, because they’re less likely to suffer damage in hail/wind storms. Typical premium reductions often range from around 10% up to 30% or more on the portion of your premium tied to the dwelling.
• A new roof alone — even without a materials upgrade — can sometimes lower your rate simply by reducing risk if the old roof was aged or worn.

Important notes:
• Discounts aren’t guaranteed and vary widely by carrier, state, and underwriting guidelines.
• Insurance companies usually require proof of the new materials (such as manufacturer specs or a class rating) before applying the discount.
• Some carriers may require additional endorsements (e.g., cosmetic hail damage waiver) as part of the discount eligibility.

Next step:
Ask your agent or insurance company before you commit to the upgrade what their specific discount (if any) would be for high‑grade shingles and what documentation they need.

It can be a problem, depending on your insurance carrier and local electrical safety standards. Here’s why:

- Stablok and Federal Pacific (FPE) breakers are considered high-risk by many insurers because they have a history of failing to trip, which increases fire risk.
- Some insurance companies may:
- Refuse coverage
- Require a panel replacement before issuing or renewing a policy
- Charge higher premiums if the panel is present

Next steps:
1. Have an electrician inspect the electrical panel to identify the brand and condition.
2. Check with your insurance agent whether your current or new policy covers homes with these panels.
3. Plan for replacement if required — modern panels improve safety and may qualify you for insurance discounts.

Most insurance companies allow you to change your deductible mid-term, but it usually requires:

- Approval from your insurer
- A premium adjustment (higher deductible → lower premium, lower deductible → higher premium)
- Documentation of the change

You should contact your insurance agent to request the change and confirm the new premium and effective date.

It can be a problem, depending on your insurance carrier and local electrical safety standards. Here’s why:

- Stablok and Federal Pacific (FPE) breakers are considered high-risk by many insurers because they have a history of failing to trip, which increases fire risk.
- Some insurance companies may:
- Refuse coverage
- Require a panel replacement before issuing or renewing a policy
- Charge higher premiums if the panel is present

Next steps:
1. Have an electrician inspect the electrical panel to identify the brand and condition.
2. Check with your insurance agent whether your current or new policy covers homes with these panels.
3. Plan for replacement if required — modern panels improve safety and may qualify you for insurance discounts.

Yes. We can send the e-Signature request directly to the Board members who need to sign.

Direct or Forwarded: We are happy to email the signing link directly to the designated signer (e.g., the Board President). However, if you (the Property Manager) already received the link, you can simply forward that email to the Board member yourself.

How it Works: The link is not ""locked"" to your specific email address. It is a secure portal key that allows whoever clicks it to access the document and apply the authorized signature.

Please email billing@myinsurancewarehouse.com

Go to: https://www.eoidirect.com/GetStarted.aspx, you can also call (877) 456-3643

You should get the first bill within the first week aftter starting your policy. For more billing questions, please email: billing@myinsurancewarehouse.com

You should receive your first invoice quickly—typically within the first week after your policy's start date.

The Timeline: Once the policy is bound and active, our system generates the initial invoice immediately. It is sent to the designated contact (Property Manager or Board Treasurer).

Questions? If you have specific questions about payment methods or need a copy of an invoice, please email our dedicated team at: billing@myinsurancewarehouse.com.

The Quick Analogy: Think of it like activating a new utility service. The moment you turn the power on (start the policy), the meter starts running. You usually get that first statement just a few days later to confirm the account is open and the first payment is due.

We want this document to be perfect for your residents.

How to Request Changes: Please email your specific edits or updated text directly to our team at: associations@myinsurancewarehouse.com.

Why it Matters: This letter is often the first interaction a new homeowner has regarding the association's insurance. Ensuring the contact info, deductible amounts, and instructions are accurate is critical to preventing confusion later.

It depends on your policy and insurer, but many insurance policies require an inspection—especially for:

- New policies
- High-value properties
- Homes with older roofs, electrical panels, or other risk factors

Your agent will notify you if an inspection is needed and schedule it.

If you need to cancel a policy, we require a formal written request to process the termination.

The Process:
- Please email a signed cancellation form to associations@myinsurancewarehouse.com.

Required Details:
- You must include:
- The Policy Numbers you wish to cancel
- The specific Cancellation Effective Date

Note: We cannot cancel a policy based on a phone call alone; we need the paper trail to protect the association from accidental lapses in coverage.

The "Master Policy" is actually a package of several different insurance lines bundled together. However, regarding the physical buildings, the extent of coverage depends entirely on the specific definition (Bare Walls vs. All-In) selected by your Board.

The Core Package: Almost all standard policies include:

- Property: Physical buildings and common areas (roofs, siding, hallways).
- General Liability: Protection against slip-and-fall lawsuits in common areas.
- Directors & Officers (D&O): Protects the Board from lawsuits regarding their decisions.
- Crime (Fidelity): Protects the HOA funds from theft or fraud.
- The Variable (Unit Interiors): This is where it gets confusing. The policy covers the structure, but who covers the inside of the unit?
- Bare Walls: Master Policy covers studs-out (structure). Owners cover drywall, paint, floors, and cabinets.
- Original Spec: Master Policy covers the structure + original builder-grade fixtures (standard counters/floors). Owners cover upgrades.
- All-In: Master Policy covers the structure + everything inside, including owner upgrades.

What is NOT Covered: The Master Policy never covers a resident's personal property (clothes, furniture, electronics).

The Quick Analogy: Think of the Master Policy coverage like ordering a Pizza.
- Bare Walls: You get the Crust Only (the structure). If you want sauce, cheese, and toppings (drywall, floors, cabinets), you have to buy them yourself.
- Original Spec: You get a Plain Cheese Pizza. You get the crust, sauce, and cheese, but if you added pepperoni later (granite countertops), that extra topping is not covered.
- All-In: You get the Fully Loaded Pizza, covering the crust and every topping currently on it.

Unit owners cannot file a claim directly on the Master Policy. The Association (Board/Manager) is the only authorized party to open a claim, here is the protocol:

1. Notify the Manager: The owner must report the damage to the Property Manager or Board immediately.
2. The "Deductible Check": The Board/Manager will determine if the cost of repair exceeds the Master Policy deductible (e.g., $10,000, $25,000, or $50,000).

Below Deductible: If the damage is less than the deductible (common for single-unit water leaks), no Master claim is filed. The unit owner must use their personal HO6 policy.

Above Deductible: If the damage is catastrophic and exceeds the deductible, the Board/Manager will initiate the claim by emailing: claims@myinsurancewarehouse.com.

The Quick Analogy: Allowing a unit owner to file a Master Policy claim is like giving every employee a corporate credit card with no spending limit. It would lead to chaos and massive rate hikes. The Board acts as the CFO (Chief Financial Officer)—they review the "expense" (damage) first to see if it is large enough to warrant using the company card (insurance), or if it should be paid out of pocket to protect the company's financial future.

You need building coverage on your HO-6 because the HOA master policy may not cover your unit’s interior or upgrades.

- If the HOA policy is Bare Walls, you’re responsible for drywall, floors, cabinets, and any upgrades.
- Even with Original Spec, any improvements beyond the builder-grade features aren’t covered.

Your HO-6 policy protects your interior finishes, upgrades, and personal liability inside your unit.

Loss Assessment is coverage on your HO-6 policy that helps pay your share if the HOA’s master policy doesn’t fully cover a loss.

- Example: If the HOA roof is damaged and the repair cost exceeds the master policy limit, the HOA may assess unit owners.
- Loss Assessment coverage helps pay your portion of that assessment.

A wind/hail deductible of 5% per building means the HOA’s master policy will pay for wind or hail damage only after 5% of that building’s insured value is paid out-of-pocket.

How to figure your portion:
1. Find the insured value of your building (usually on the Welcome Letter).
2. Multiply by 5% → that’s the total deductible for the building.
3. Your share is typically based on your unit’s percentage of ownership (also listed on the Welcome Letter).

Example:
- Building insured for $1,000,000 → 5% deductible = $50,000.
- Your unit’s share = 2% of the building → $50,000 × 2% = $1,000.

This is the amount you could be responsible for if a wind/hail claim occurs.

No

Contact Directory:
For any questions, feel free to reach out to the appropriate team:
- Billing: billing@myinsurancewarehouse.com
- Claims: claims@myinsurancewarehouse.com
- COI Requests: associations@myinsurancewarehouse.com
- Loss Runs: requests@myinsurancewarehouse.com
- Policy Changes/Inquiries: associations@myinsurancewarehouse.com

A Per Occurrence deductible is the amount you must pay each time a separate loss or claim happens before the insurance policy pays.

Example: If the deductible is $1,000 and two separate water damages occur, you pay $1,000 for each event, not just once.

Lower deductibles mean you pay less out-of-pocket per claim, but your premium will be higher.

Higher deductibles reduce your premium and are often recommended if you want to save on regular insurance costs and can cover a larger out-of-pocket expense if a claim occurs.

You likely received a call/text from a third-party inspection company contracted by your insurer or HOA to perform the required inspection.

Insurance companies often use outside vendors to schedule or conduct inspections, which is why the contact may appear different from your agent.

If EOI doesn't respond, email associations@myinsurancewarehouse.com.

Only submit a claim if you have a covered loss under your policy.
- Consider the cost of the damage vs. your deductible.
- Frequent claims can increase premiums.
- When in doubt, contact your insurance agent to discuss whether it makes sense to file.

To submit a claim:

Contact your insurance company — call the claims number or use their online/portal system.

Provide details — date, cause, and description of the loss or damage.

Document the damage — photos, videos, or receipts.

Follow instructions — an adjuster may inspect the damage.

Your insurance agent can also guide you through the process.

To get an HOA insurance quote, contact your insurance agent and provide:

- Association name and address
- Number of units and building details
- Coverage preferences (e.g., Bare Walls, Original Spec, All-In)
- Any recent claims or updates to common areas