The Heather Walk Condominium  master policy for commercial property  insurance includes liability insurance  for the association and coverage for all  condominium buildings and commonly  owned property. The Heather Walk Declaration of Condominium and Florida Statute 718.111 (11) determines exactly which building components are covered under the associations master policy. To be more specific the Heather Walk master policy coverage stops inside the exterior walls, meaning that unit owners are responsible for the interior walls, fixtures, personal property and liability exposures. The master insurance policy does not cover losses to the interior of units as a result of among other perils, earthquakes, fire, flood water or wind storms such as hurricanes and that is why owners and tenants need their own insurance. An HO-6 policy is the form used to insure condominiums. The HO-6 policy picks up where the association coverage left off as well as provide for loss of use and loss assessment coverage. Neither the Heather Walk Condominium master insurance policy or a typical HO-6 policy covers a loss among other things floods or earthquakes. Insurance coverage for floods or earthquakes can be purchased separately. Also recommended is increasing loss assessment coverage above $2,000 to cover the associations deductible.

Who will pay the HW Master Policy Insurance Deductible? The Association maintains commercial property insurance. Coverage does not insure the interior of individual units or cover flooding. Within the association policy there are different deductibles based on peril. Deductibles for windstorm and hail are 3% of the value of each building with all other perils, like fire at $1000 per building. Lets say a hurricane strike delivers a total loss to the clubhouse with an insured value of $571,900. The deductible is 3% of the building value or $17,157. Now if building 8 sustains a loss through fire the deductible is $1000. In either case owners are required by the State of Florida to pay the property insurance deductible through a loss assessment or increase maintenance fees. The Board of Directors have an option to fund the reserve account for such an occurrence.

 Roof mitigation may reduce insurance bill.  Mitigation is the effort to reduce loss of life and  property by lessening the impact of disasters.  Roof mitigation reduces the hazards derived from  Hurricanes or Tropical Storms. Florida Statute  627.0629, in part requires insurance companies to offer discounts or other rate differentials for particular construction techniques. From your insurance carrier, request form OIR-1B-1655 to view a list of those discounts with exact dollar savings. From a qualifying inspection company, request a windstorm mitigation inspection. During the inspection a technician checks among other things how the roof deck is constructed and attached, and how the roof to wall connection is made. Inspections of some attics at Heather Walk have shown roof to wall connections are installed with qualifying hurricane clips and metal straps that have led to discounts for current owners. From the inspection company, forward your Wind Loss Mitigation form OIR-1B-1802 to your insurance agency so they may assess the appropriate discount. The inspection report is valid for up to 5 years and the cost for this service, about $125.

Just say no to unlicensed contractors! During hurricane season residents who experience damage from high speed wind and rain are reminded to scrutinize carefully who you hire to do post-storm repairs. Here are some questions to ask before hiring a contractor. •Is the contractor licensed and insured? •Will the contractor pull the proper permits? •Can the contractor provide references? •What is the contractor's hourly charge or is the charge by the job? •Will the contractor provide you with a written estimate? •Does the contractor provide a service agreement guaranteeing the work? •When the work requires holes in walls or other structural changes will those repairs be included in the written estimate? Heather Walk Condominium documents require contractors be bonded, licensed, insured and in some circumstances such as window frame replacement Board approved before work begins. Contact the management company for the required forms.

The State of Florida requires  Heather Walk Condominium to  have a master insurance policy.  Coverage is determined by Florida  State Statues and the Declaration  of Condominium. In the event one  or more buildings at Heather Walk  was impacted by a covered peril such as a fire event the master policy would cover the rebuilding of the exterior building{s}. The master policy does not provide protection to individual units. Individual unit owners are responsible for rebuilding the interior of their unit. Depending on the size and amenities rebuilding the interior of a unit could range to $100,000 plus. Using the national average that 25% of unit owners do not have any insurance coverage translates to having a negative financial impact when several unit owners let their policies lapse. Keeping the national average in mind lets say building 1 containing 32 units is a complete loss due to an accidental kitchen fire. The association master policy provides money to rebuild the building exterior and 24 of 32 unit owners receive settlements from their individual unit owner policies to rebuild the interiors of their units. The remaining 8 unit owners did not purchase an individual homeowner policy so they will not be receiving a settlement to rebuild. With no insurance it is likely the owners will walk away from the units. For the association there is a loss of monthly dues. Those lost fees will be inherited and billed to the remaining owners through a special assessment or increased maintenance fees. Now of the unit owners that did purchase insurance it may be insufficient coverage because they bought strictly on purchase price and never allowed for inflation, appreciation, or improvements. All the while during the rebuilding process unit owners are still responsible for continuing to pay maintenance fees and a mortgage. The reality is all unit owners have a collective responsibility for insuring their units because it does not take much of a fire, to do a lot of damage, so without the proper insurance the downward cycle would most likely repeat itself.

An alternate way to pay a storm loss special assessment. Heather Walk Condominium Inc maintains commercial property and liability insurance. Within the policy are deductibles which are passed down and paid for by unit owners in the form of a special assessment. This type of special assessment is categorized as a loss assessment within the insurance industry. Loss assessment coverage falls into a category of insurance that is not provided within the association coverages. This is coverage you purchase from your insurance company. If the Board approves a special assessment {say from a storm or fire event}, owners can report the loss as a claim and should be able to collect the cost of the special assessment. Your own loss assessment coverage should pay for special assessments the association makes against your unit for the deductible. The standard limit in the policy is $2,000, but you can purchase amounts up to $50,000. In the event of a major hurricane, where Heather Walk Condominium Inc. suffers a catastrophic event the estimated storm loss special assessment for 2012 is as follows: 1 bedroom 1 bath $1,245
2 bedroom 1 bath $1,511
2 bedroom 2 bath $1,680
3 bedroom 2 bath $2,127

The case for obtaining flood insurance. Floods can be caused by hurricanes resulting in storm surge or by earthquakes resulting in a tsunami. Roughly 25% of all flood insurance claims came from areas not considered high risk. Typically an HO-6 policy does not cover losses caused by flood. You can protect your unit with flood insurance from the National Flood Insurance Program. To qualify, your unit must be your principal residence, and it must be owner occupied. There is a 30 day waiting period before a flood policy becomes effective. Flood insurance pays even if a disaster is not declared. You do not have to own a unit to purchase flood insurance, so renters can insure their belongings. What about Federal Disaster Assistance; Fact, the average Individual and Household Program award is around $4,000. The cost of flood insurance coverage depends on the flood zone risk area. Heather Walk Condominium is located in two moderate to low risk flood areas referred to as flood Zone X, also known as Zone B, and flood zone X-500 (500-year).