Resort communities may range from landowners associations centered around common amenities to large, residential complexes with extensive amenities that include owners who live there full-time or are only there seasonally. Association-controlled rental pools, timeshare units, and on-line rentals such as AirBnB and VRBO may add further complexity to the insurance program and require special underwriting. Furthermore, water amenities such as lakes, marinas, and docks (“dockominiums”) also create the need for special insurance coverage.
Common coverage considerations for a resort community may include:
Master Property Policy
Resort communities typically have extensive property insurance obligations, especially if the association is responsible for insuring the residential buildings, docks, marinas, clubhouses, and more. Dockominiums that are apart of or even separate from the main association are sometimes challenging and expensive to insure. It’s important to work with a community association insurance team that understands the challenges of insuring all types of resort communities and has connections with insurance companies willing to underwrite these unique risks.
General Liability, Marina Operators Legal Liability, Bumbershoot Insurance, and Umbrella Liability Insurance
General liability insurance protects resort communities against claims of bodily injury or property damage occurring on common property. This coverage is vital in mitigating financial losses from lawsuits, including legal defense costs and settlements. Short and long-term rental exposures are an added risk that requires special underwriting. If your community has a marina, you may need marina operators legal liability and bumbershoot insurance to protect against damage to owned and non-owned watercraft. Finally, purchasing larger liability limits is critical for communities with extensive amenities.
Directors & Officers (D&O) Insurance
D&O insurance protects board members and officers from personal financial losses resulting from alleged wrongful acts or decisions made in their official capacities. This coverage is crucial in safeguarding the personal assets of volunteers serving on the board. There is wide variation between D&O policies, and it’s critical that your association has broad coverage that picks up a variety of claims—from non-monetary damages to third-party discrimination.
Crime / Fidelity Bond Coverage
This coverage safeguards associations against financial losses resulting from fraudulent or dishonest acts committed by employees, board members, volunteers, and managers while handling association funds. Please note that most governing documents require this coverage, and nearly all lenders mandate that associations carry a crime limit no less than three months’ of dues, plus the total amount in your reserve accounts.
Worker’s Compensation Insurance
Worker’s compensation insurance will provide coverage for employees of the association as well as potentially protect against workplace injuries, financial support, and medical expense coverage in the event of an occurrence involving an employee or a contractor carrying inadequate or no worker’s compensation insurance. Even if you have no employees, the association may also consider implementing an “if any” type of policy to cover the acts of association volunteers and uninsured subcontractors.
Unit Owner Insurance (HO-6 policy)
While the association’s master policy typically covers common areas and building structures, individual unit owners are responsible for insuring portions of their unit’s interior, personal property, and liability exposures. The HO-6 policy also should provide adequate loss assessment coverage for losses to the common elements that either fall under the association’s master deductible or are not covered by the master policy. Our team assists associations with coordinating coverage between the association’s master policies and the unit owners’ policies.
Resort communities may range from landowners associations centered around common amenities to large, residential complexes with extensive amenities that include owners who live there full-time or are only there seasonally. Association-controlled rental pools, timeshare units, and on-line rentals such as AirBnB and VRBO may add further complexity to the insurance program and require special underwriting. Furthermore, water amenities such as lakes, marinas, and docks (“dockominiums”) also create the need for special insurance coverage.
Common coverage considerations for a condominium association may include:
Master Property Policy
Resort communities typically have extensive property insurance obligations, especially if the association is responsible for insuring the residential buildings, docks, marinas, clubhouses, and more. Dockominiums that are apart of or even separate from the main association are sometimes challenging and expensive to insure. It’s important to work with a community association insurance team that understands the challenges of insuring all types of resort communities and has connections with insurance companies willing to underwrite these unique risks.
General Liability, Marina Operators Legal Liability, Bumbershoot Insurance, and Umbrella Liability Insurance
General liability insurance protects resort communities against claims of bodily injury or property damage occurring on common property. SThis coverage is vital in mitigating financial losses from lawsuits, including legal defense costs and settlements. Short and long-term rental exposures are an added risk that requires special underwriting. If your community has a marina, you may need marina operators legal liability and bumbershoot insurance to protect against damage to owned and non-owned watercraft. Finally, purchasing larger liability limits is critical for communities with extensive amenities.
Directors & Officers (D&O) Insurance
D&O insurance protects board members and officers from personal financial losses resulting from alleged wrongful acts or decisions made in their official capacities. This coverage is crucial in safeguarding the personal assets of volunteers serving on the board. There is wide variation between D&O policies, and it’s critical that your association has broad coverage that picks up a variety of claims—from non-monetary damages to third-party discrimination.
Crime / Fidelity Bond Coverage
This coverage safeguards associations against financial losses resulting from fraudulent or dishonest acts committed by employees, board members, volunteers, and managers while handling association funds. Please note that most governing documents require this coverage, and nearly all lenders mandate that associations carry a crime limit no less than three months’ of dues, plus the total amount in your reserve accounts.
Worker’s Compensation Insurance
Worker’s compensation insurance will provide coverage for employees of the association as well as potentially protect against workplace injuries, financial support, and medical expense coverage in the event of an occurrence involving an employee or a contractor carrying inadequate or no worker’s compensation insurance. Even if you have no employees, the association may also consider implementing an “if any” type of policy to cover the acts of association volunteers and uninsured subcontractors.
Unit Owner Insurance (HO-6 policy)
While the association’s master policy typically covers common areas and building structures, individual unit owners are responsible for insuring portions of their unit’s interior, personal property, and liability exposures. The HO-6 policy also should provide adequate loss assessment coverage for losses to the common elements that either fall under the association’s master deductible or are not covered by the master policy. Our team assists associations with coordinating coverage between the association’s master policies and the unit owners’ policies.
