Property Terms

Replacement cost Building and Contents Insurance – Provides coverage against “all risk” of physical loss, subject to policy exclusions, without any sub-limits applying to the building, structural glass, signs or Association personal property, on a replacement cost valuation basis (i.e. the cost at the time of loss to replace with new property of like kind without depreciation).

Covered Property – This means that after a covered loss, the insurer will pay for the restoration of the building and any property included in the units and private storage areas which was initially installed in accordance with your Association’s original plans and specifications or replacement with like kind and quality.

Waiver of Subrogation – The insurance company waives its rights to subrogation against any unit owner.  This means that the unit owners cannot be sued by the insurance company for causing a loss.

Deductible – The deductible is the amount of claim that the insured is obligated to pay.  In the event of a loss occurs, only one deductible will be charged per occurrence, with the exception of ice damming where the deductible may apply per unit.

Natural Property – Covers, live trees, plants, shrubs and lawns.  Coverage is specifically limited to losses caused by fire, lightning, explosion vehicle, aircraft, riot, civil commotion, vandalism and theft.

Money & Securities – Covers destruction, disappearance or theft of money or securities from your Association premises or bank, or at the home of any bank messenger.

Personal Effects – Covers personal property on your person an owned by your Association directors, officers and employees while acting in the scope of their duties.

Personal Property of Others – Covers personal property of others in your care, custody or control.

Property Off Premises – Covers property while the property is temporarily at another location.

Property In Transit – Covers property while the property is being moved to another location.

Employee Dishonesty (Fidelity) – Covers dishonest acts by one or more employees acting alone or in collusion against theft of Association funds.  The employee dishonesty bond coverage is extended to include directors, officers, trustees, committee members and property managers in the definition of employee.

Depositors Forgery – Covers alterations or forgery of a check or draft drawn on the Associations accounts.

Maintenance Fees and Assessments – Pays for all maintenance fees and assessments due you from unit owners, following a covered loss, which you have been unable to collect due to a homeowners loss of use of the property during the period of restoration.

Valuable Papers & Records – Pays you for he cost of restoring your Association valuable papers and business records destroyed or damaged by a covered peril.  This would include resident lists and records, automobile titles and service records.

Ordinance or Law Coverage- A property endorsement which provides the insured the option to purchase coverage for three types of common building ordinance or law requirements that apply after an insured has suffered a physical damage loss such as fire.  These ordinance or law damages are normally excluded in standard property coverage forms.  The coverages available in this endorsement are cost to demolish the undamaged portion of the building, cost to replace with superior construction as required by law, and cost to clear the land of debris after demolition.

Debris Removal – Pays to remove the debris of covered property that does not include any pollutants.

Fire department Service Charge – Covers your Association liability for fire department service charges when the fire department is called to save or protect property from a covered loss.

Limited Pollutant Cleanup and Removal – Pays the expense to cleanup and remove pollutants at your Association location if the release, discharge or dispersal of the pollutants is caused by or results from a covered loss.

Liability Terms

Liability – Covers your Association liability for Bodily Injury and Property Damage.  Products liability and completed operations are also included.  There is no aggregate limit of liability for operations exposure.  The full limit is available for each claim.  Products and completed operations are subject to an aggregate limit.

Contractual Liability – Extends your coverage to liability assumed under contract, applies to both oral & written agreements relating to named insured’s business.

Personal Injury and Advertising Injury Liability – Personal Injury means injury other than bodily injury.  Coverage is provided for injury resulting from offenses such as false arrest, malicious prosecution, detention of imprisonment, the wrongful entry into, wrongful eviction from an other acts of invasion, or rights of private occupancy of a room.  Coverage for libel & slander is also provided in the policy.  Advertising Injury pays for damages done in the course of oral or written advertisement that disparages, libels or slanders a person’s organization’s goods, products or services.

Host Liquor Liability – Will defend or pay sums you are legally obligated to pay resulting from serving of liquor to someone who, while intoxicated, is in an accident and causes or receives injuries as a result of the alcohol consumed.

Fire Damage Legal Liability – Limit provides coverage for fire damage caused by negligence on the part of the insured to premises rented to the named insured.  If a fire occurs because of negligence of the insured and causes damage to property not rented to the insured, coverage would be provided under the occurrence limit.

Incidental Medical Malpractice – Extends “bodily injury” arising out of rendering or fail to render medical treatment on premises such as, for example, first-aid treatments, during the policy period.

Non-Owned Watercraft – covers operation of watercraft under 50 feet in length which the Association borrows, rents or charters – but do not own.

Additional Person Insured – Includes as insured; 1. Any spouse of a partner concerning business activities of the partnership and 2. Any employee of the named insured while acting within the scope of his or her duties.  Does not apply to bodily injury or personal injury sustained by a fellow employee, which occurs during the course of employment.

Extended Bodily Injury – Amends the definition of occurrence to; includes any intentional act by or at the direction of the insured, which results in bodily injury, but only is such bodily injury results from the use of “reasonable” force for purposes of protecting persons or property.

Newly Acquired Organizations – Provides automatic coverage up to 90 days for organization which the Association buys or establishes and which the Association is the owner or the majority stockholder, including limited liability companies.

Medical Payments – Pays the reasonable medical payments, without regard to fault, caused by an accident on your Association property, or the ways immediately adjoining it.

Workers Compensation Terms

The insurer will pay all compensation and other benefits required of the insured by the workers compensation law or occupational disease law of any state listed in the policy.  The coverage applies to bodily injury by accident and by disease.

Employer’s Liability – this coverage protects legal liability for bodily injury by accident or disease to an employee arising out of and in the course of the employee’s employment when not covered under the workers compensation law.

Directors & Officers Terms

Provides coverage for elected or appointed individuals of an Association if they are sued by an Association member or third party alleging that a wrongful act was committed by the director or officer.  Extends coverage beyond protection for claims of bodily injury or property damage (covered by the general liability) into areas such as mismanagement of the Association.

Umbrella Terms

Umbrella liability insurance provides excess liability coverage over several of the insured’s primary liability policies.  Umbrella policies have three functions: 1. To provide additional limits above the Each Occurrence limit of the insured’s premium policies, 2. To take the place of primary insurance when primary aggregate limits are reduced or exhausted, 3. To provide broader coverage for some claims that would not be covered by the insured’s primary insurance policies, which would be subject to the policy retention.

Equipment and Machinery Terms

Coverage applies not only to boilers, but includes pressure vessels, compressors, motors, internal combustion engines, fans, pumps, generators, transformers an other miscellaneous electrical equipment.  This includes electrical business and communications systems and heating air conditioning equipment.  Coverage includes perils normally excluded in the package policy, such as pressure failures and other accidents to boilers and pressure vessels, mechanical breakdown and electrical breakdown.  In addition, it covers many hazards that warranties and maintenance contracts to not, such as operator error, faulty workmanship, poor maintenance, acts of utility companies, business interruption/extra expense, spoilage or even resulting damage to property.