After the hurricanes, many of us were surprised just how large each Association’s deductible had become. I just received the “appraisal” for insurance on my Associations Condominium Policy and the value HAS GONE UP.
A 24 Unit Building now has a valuation of $ 1,880,044.00 and the deductible would be 2% of that, for a new total of $ 37,600.88. That is nearly $ 1,566.00 per Unit Owner!
While we did not have these figures during our budget deliberations, it should be brought to the Attention of Unit Owners, in my opinion.
Why then do we have to ask for the increase in value? Why doesn’t UCO automatically provide this – perhaps at the delegate Assembly, as a handout?
Shouldn’t all information affecting the cost of living here be made public as a matter of regular business practice?
I think it should, how do you feel, what does your delegate think?
Thursday, February 7, 2008
Insurance Deductibles
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9 comments:
I agree but most boards should know their bldg. valuations have increase in 4 years. I think our deductible was 20k 4 years ago and luckily we had the money in the bank due to our president being thrifty. Even though our assoc. has about 31k in the bank at present , it will be hard to come up with 37k unless we spend little or no money on improvements this year. Fortunately, our 3 bldgs. are in great shape .
Hi Ed, Is there an insurance cmte or is it Gladstone and Gladstone, are you on such cmte. I have not seen any meetings posted. My building is valued (for ins) at approx $1,600,000 as of the last appraisal in 2004. At today’s rebuilding cost of $150 /sq ft that is about right. Amazing. We are due for another appraisal this year! Are you saying that UCO should give us our individual building details every year when they get them from Plastridge around March? That would seem the correct and sensible thing to do.
Ed, When You say 24 unit bldg. are you referring to the 24 units in 3 buildings, as in Norwich?
Hi Mike, Elaine
Please remember the Deductible is PAID before any insurance covered expense.
Of course, SINCE WE will NEVER have another hurrXXXX…… you guessed it. We may all relax.
The point is to be prepared; we MUST know the costs, even if they are only a possibility. Unit Owners should participate in the budget deliberations, and how may we do that properly without the NEW VALUATION AND NEW DEDUCTIBLE being discussed.
Yes, UCO should provide the new valuation when they receive them. Why doesn’t UCO announce these important and potentially assessable expenses to our Unit Owners automatically?
As a former UCO Vice-President under the Bob Marshall Administration, I was on the Insurance committee, Security, Investigations, Operations Committee, to name a few, for a number of years, however Mr. President would not hear of my continuing in those position after he was elected. So it has become Mr. Gladstone and Officers?
Yes Mike these are the 3 buildings/24 units you wrote about.
Hi Ed , I thought you meant the 3 bldg configuration. I'm sure there are a lot of assocs. in the village that don't have close to the 2% deductable in the bank. Especially since they have not been told about the higher property valuation. Every Assoc. should be notified by UCO about the new property valuation in time to make ajustments in their budgets. Thanks, Mike
Many thanks for bringing this to our attention. The deductible should be one of the items for the Association reserve. This should be discussed at the coming FL Ombudsman meeting. We have $10K in the reserve for the deductible, which used to be half the deductible. People on social security who don’t buy no green bananas are not going to go for saving the whole deductible for the future. I think I will post a notice suggesting people save their ‘economic stimulus’ payment for possible hurixxx. I am also 3 buildings/24 units.
Thanks for helping to get the information out.
The whole purpose of discussion is to inform, so the "people" may decide.
If we learned one thing while we were in office, it is the value of getting information out, unfortunately, due to storm damage; we were quite limited because of the loss of the clubhouse, and Channel 63,
See 718.111 {12} Official Records
(a)From the inception of the association, the association shall maintain each of the following items...
8. All current insurance policies of the association and condomiiums operated by the association.
Don’t you think our Insurance Committee ought to know 718 requires THAT?
How may one do the appropriate budget deliberations without “ALL THE FACTS”?
I encouraged the F I N A N C E Department to evaluate just who pays directly to UCO, since the management Companies pay UCO billing for most of us. It would reduce the amount of billing notices, that they, quite often, can’t even get someone to pick-up. They continue, however to produce each Associations Billing notices “cause we’ve always done it that way”.
As long as they insist on continuing this “the old way”, why not include the sheet from the insurance showing the NEW Building Appraisal?
This is important information and would annually remind each Association that as values increase so do:
Roof replacement, and even the Reserve Fund for Repaving the Village.
In all cases REVALUATION is mandatory, except at UCO, with the 2002 value to repave, which continually they fail to up-date!
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