TIP OF THE MONTH
Our Community’s Insurance
Some of your maintenance fees go toward paying for our community’s insurance needs.
Have you ever wondered what kinds of insurance our community association needs? Below is a list
of the different types of insurance typically available to associations. King's Gate Club does
carry each of these coverages in its policies.
- Property insurance. Most other types of coverage are built around property
insurance. It covers all buildings, structures, and personal property owned by the
association, including common property, open spaces, and recreational facilities, and
sometimes includes portions of residential areas.
- General liability. In addition to protecting physical property, our association
has commercial liability insurance. Unlike property damage, which often can be measured in
dollar amounts, liability claims have no limits other than those imposed by courts.
- Auto (owned, non-owned, and hired). Associations with employees who drive cars,
trucks, or maintenance vehicles on association property or elsewhere while carrying out
association business need auto insurance.
- Directors' and officers' liability. Boards are volunteers trying to serve their
communities, but as the old adage says, “No good deed goes unpunished.” So, even when boards
behave appropriately and use sound judgment someone may still file a lawsuit claiming
wrongful termination, sexual harassment, discrimination, or mismanagement of funds, to name a
few common suits.
- Umbrella liability. This type of coverage closes some of the gaps in other types
of insurance policies. No standard umbrella policy exists, so the association works closely
with our insurance professional to design a policy tailored to our specific needs.
- Workers’ compensation. This insurance—required in most states—provides benefits
for employees who sustain injuries while working for the association.
- Terrorism. Insurance companies are now required by law to offer coverage for
certified acts of terrorism. An “act of terrorism” is usually defined as any violent act that
is dangerous to life or property with the intention of affecting the population's conduct,
with damage totaling at least $5 million.
- Mold. Damage from mold is excluded from most standard property insurance policies,
which tend to provide coverage for damages that are sudden and accidental but don’t generally
cover the cost of cleaning and maintaining a home.
- Windstorm.Wind damage is not included in our commercial policy so we carry a
separate policy. For property damage from any windstorm, the deductible is 3% of the insured
value of the property.
- Flood.Water damage to property from floods are not covered by the property
insurance policy. Congress established the National Flood Insurance Program (NFIP) to address
both the need for flood insurance and the need to lessen the devastating consequences of
flooding. The goals of the program are twofold: to protect communities from potential flood
damage through floodplain management, and to provide people with flood insurance.