Subscribe by Email

Articles Posted in Insurance

Eduardo-Valdes-srhl-lawAn article authored by firm partner Eduardo J. Valdes is featured in the op-ed “Opinions” page of today’s South Florida Sun Sentinel.  The article, which is titled “Post-Surfside, condo associations must be proactive with change | Opinion,” focuses on the impact that the horrific tragedy of the Champlain Towers South collapse has had on the condominium associations for similar towers nationwide and their boards of directors.  Eduardo notes that in addition to the shared grief and remorse with the families and friends of all the victims, many condo owners across the country are now raising questions about their own buildings’ structural safety and financial health, and some have also begun to feel more concerned about the funding of reserve accounts for major repairs and replacement projects.  His article reads:

 . . . All buildings deteriorate over time, so associations should always set aside funding on an ongoing basis to mitigate and remediate any structural elements that require attention.

As they begin reassessing their associations’ commitments, condominium boards of directors will generally try to avoid special assessments demanding additional funds from all the unit owners. They will need to consult with legal, financial, engineering and insurance professionals to strike a balance between the funding of reserves and the use of special assessments when they become necessary from a life-safety standpoint.

Sun_Sentinel_Logo-300x97Condominium association directors and unit-owner members would also be well advised to come to terms with the new reality that future buyers will now have many more questions and concerns than in the past about the financial health of the association and current state of the actual property from the ground up. Some will surely request that sellers provide them with the minutes from prior board meetings, information on any past or planned special assessments, the status of renovation and remediation projects, past changes to the monthly assessments over the years, the findings of past reserve studies, and the status of current reserve funding. They are also now more likely to conduct a thorough visual inspection of the entire property prior to making a written offer.

Continue reading

Michael-Hyman-srhl-lawAn article authored by the firm’s Michael L. Hyman was featured as the “Board of Contributors” expert guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Injunction Petition Against Ornery Condo Resident Sends Important Message,” focuses on a recent petition for an injunction stemming from pre-pandemic confrontations between a current and a former community association board member.  Michael writes that the case illustrates how associations and their directors should proactively address bellicose residents.  His article reads:

. . . The initial incident that led to the petition for the injunction, which was granted by the circuit court but eventually overturned on appeal, took place at a Broward County condominium in December 2018. That was when Patrick Gagnon, a member of the community’s board of directors, was accosted by prior board member Joseph Cash. A second incident later in the same month involved Cash allegedly yelling at Gagnon, calling him a liar and cursing at him.

dbr-logo-300x57Two months later in February 2019, Gagnon alleged that Cash confronted him two times, 45 minutes apart, yelling and cursing about new trees installed by the association that blocked the view from his condominium.

Continue reading

As new spikes in Covid-19 cases continue to unfold and communities seek to maintain their mitigation measures, the financial trials and tribulations created by the pandemic in condominium association and HOA communities throughout the country become ever more apparent. The continued proliferation of Covid-19 cases underscores that while many may be letting their guard down and growing fatigued as to the measures to protect against the spread of the virus, community association stakeholders should remain proactive and forward-thinking in order to best position their associations for the consequences that may arise due to the pandemic.

Some community associations have begun to experience the burdens resulting from lower collections rates caused by strains on the job market due to the pandemic.  While the exact impact on the many types of community associations may be unknown, it has been suggested that delinquency rates could exponentially increase. Bank-owned-2-300x257 In response to such expectations, we continue to suggest that community association boards and managers should continue considering the development of acceptable uniform payment plans that may be offered to those who have lost jobs and businesses.

Similarly, some have proposed that community associations should also think about postponing discretionary improvements to community amenities until late 2021 or even 2022.

Continue reading

If you live in a condominium, there is a reasonable chance that, at some point, you will experience one of the most frustrating events for homeowners:   water intrusion caused by plumbing problems and related losses.  The big difference between those who reside in a shared community, such as a condominium building, and those who reside in a single-family home is the added complication for condominium dwellers of determining responsibility and liability for any water damage and resulting remediation work.

In condominiums, the association is generally responsible for losses emanating from the property’s common elements.  Complications for assigning responsibility, however, typically arise from losses that may originate from inside an owner’s dwelling unit, and may cause damage to adjacent or below units, as well as to the common elements.

Such cases are often resolved through a negotiation between insurance carriers for unit owners and those for the association’s property, assuming the owners have adequate coverage. water-300x225 Insurers tend to find the most common sources of water loss from inside a dwelling unit to be sinks, showers, toilets, faucets, drains, supply lines, valves and pipes.  In addition, problems with appliances, such as dishwashers and refrigerators, are also likely culprits.

For shared walls and plumbing lines, insurers for multiple unit owners may be involved.  In those cases, carriers often work together to inspect the affected property, determine the cause of the water loss and assign responsibility where it lies.

Continue reading

susanodess-srhl-thumb-200x267-94402The firm’s Susan C. Odess authored an article that appeared as the featured guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Court Opens Citizens Property Insurance to Claims for Consequential Damages,” focuses on a recent precedent-setting ruling with a certified question to the Florida Supreme Court by the state’s Fifth District Court of Appeal.  Her article reads:

. . . The appellate panel overturned the trial court’s decision and remanded the case back to the lower court for hearings on whether the claimant is entitled to consequential damages for lost rental income caused by the insurer’s delays and denials.

The case began with an insurance claim by Manor House with Citizens Property Insurance Corp., which accepted responsibility for the loss and paid $1.93 million. The property owner later reopened the claim seeking $10 million, and the insurer subsequently made additional payments for approximately $345,000. However, Citizens’ adjuster estimated the actual cash value and replacement cost value of the policyholder’s loss to be in the $5.5 to $6.5 million range.

dbr-logo-300x57The property owner eventually sued in 2007 seeking prompt payment of the allegedly undisputed amount of $6.4 million and asking the court to compel Citizens to engage in the appraisal procedures called for under the policy.

Continue reading

susanodess-srhl-224x300An article authored by shareholder Susan C. Odess was featured as the “Board of Contributors” guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Florida Legislature Passes Assignment of Benefits Insurance Claim Reform,” discusses the ramifications of the new state law to reform the insurance industry practice known as assignment of benefits, or AOB.  Her article reads:

. . . The AOB process, which has been in place for decades, has become controversial in recent years because of an increase in residential water-damage claims, primarily for broken water pipes and leaks. Property owners sign over their claim benefits to contractors, which are then able to pursue payments directly from the insurers.

The proponents of AOBs say they help to ensure claims are properly paid, but the legislators supporting the bill have said it is aimed at curbing abuses of the AOB process. Insurance carriers have contended for many years that AOB fraud and the excessive litigation it generates have led to higher property-insurance rates.

dbr-logo-300x57The new law limits attorney fees in AOB lawsuits filed by contractors against insurers. The legal fees will be calculated using a set formula, but the caps would not apply to lawsuits filed by policyholders.

Continue reading

susanodess-srhl-thumb-200x267-94402Stuart-Sobel-2013-200x300Firm partners Stuart Sobel and Susan C. Odess won a $3.67 million jury verdict in federal court in Miami for the St. Louis Condominium Association, which sued its insurer Rockhill Insurance Co. over a denied claim for extensive damage to the Brickell Key tower caused by Hurricane Irma.  The verdict was filed last Wednesday, June 5, and it is chronicled in an article in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article reads:

. . . the judgment is good news for the association since it stood to get nothing from its insurer, said Stuart Sobel, who was part of the Siegfried Rivera team representing the association.

“I believe in juries, and I am pretty pleased with the results. In light of the alternative where the insurance company basically said, ‘We are not paying any money.’ They said we suffered no damage form Hurricane Irma,” Sobel said.

He said the hurricane churned in the condominium’s vicinity for 24 hours. The building sits on Biscayne Bay east of downtown Miami.
Sobel worked on the case with Siegfried Rivera’s Susan Odess . . .

Continue reading

Hurricane preparedness is a significant undertaking for every community association in Florida. Being well prepared — and well informed — can determine whether association boards and their managers will sink or swim in the aftermath of a storm. Here are some helpful tips to enable associations to stay ahead of the 2019 hurricane season, which officially began on June 1 and will end on November 30:

Maintain an up-to-date paper roster of the current residents, and store it at an accessible off-site location. Hurricane-2-300x169A separate list of residents who are remaining in the building should also be kept. Accounting for the whereabouts of all residents can be vital for emergency response teams who might have to provide medical assistance to any residents in need.

Keep important documents at a safe alternate location. This includes a copy of the association’s governing documents, a certified copy of the insurance policy, bank account information, service provider contracts, and contact information for all residents, staff and vendors of the association.

Continue reading

There are many objections to board service that are often cited by unit owners who are reluctant to serve on their community association’s board of directors. While the time commitment is a prevalent concern, some believe that the post also brings with it an unreasonable level of liability and exposure to lawsuits by disgruntled unit owners.

To quell those concerns, such individuals should recognize that condo associations and HOAs typically carry Directors and Officers Liability Insurance (aka D&O insurance), which serves to defend and protect directors from lawsuits to which they may be exposed. Additionally, directors are also protected by indemnification provisions of the Florida laws governing not-for-profit corporations as well as the articles of incorporation of their association.

Continue reading

A recent news report about excessive levels of radon gas in a Florida condominium raises some interesting questions about the proper response from a condominium association and its insurance carriers on this issue.

The report, which appeared in late November in the pages of the Venice Gondolier Sun, chronicled how the owners of a unit at the South Preserve II of Waterside Village Condominium were surprised to learn that tests conducted at the behest of their tenants found excessive levels of radon in their unit. The odorless and colorless gas, which comes from the radioactive breakdown of naturally occurring radium found in most Florida soils, rocks and groundwater, is the second leading cause of lung cancer overall and is the leading cause among non-smokers. In Florida, one in five homes tested has elevated radon levels above the limits set by the Environmental Protection Agency, and the gas can be found in homes, schools, offices and high-rise condominiums.

According to the newspaper’s article, the unit owners sent the test results to their association, which hired a different company to conduct its own tests that yielded similar results. The radon levels in the residence were more than five times the level considered safe by the EPA.

rn-300x196The owners obtained an estimate for $3,100 to mitigate their unit, but per EPA rules the company would be required to inform the neighbors of the mitigation process. It also requested that the owners sign an “inadvertent collateral mitigation form” stating the company would not be held responsible for any environmental impacts on adjoining units.

Continue reading

Contact Information