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Bulletin #16 – Condo Insurance Update

As a routine practice during the insurance renewal process, the Board has our agent shop the Bay Watch III insurance. During this process, it came to our attention that all potential insurance carriers may not have been included in the quote process, so we gave the opportunity for another agency to participate in the quoting process. As a result, Bay Watch III was able to save a significant amount on the cost of our insurance (approx. $8k) by changing insurance carriers and agents.

Insurance Deductibles

One other significant change is that our insurance deductible increased for all claims to $5,000.

In accordance with Maryland law and our Bay Watch III by-laws, you may be responsible for the deductible on the master policy if damage originates in your unit, up to $5,000. Contact your insurance agent to make sure you are covered for these deductibles on your HO-6 policy.

Bay Watch was also able to cut the wind deductible in half to $114k per claim.

Insurance Agency Contact Info

Insurance Management Group, Inc.
PO Box 3609
Ocean City MD 21843
410-524-5700
www.imgoc.com

Sally Parker is our agent. Her email information is sparker@imgoc.com.

Insurance Certificate Requests

If you require a certificate of insurance to provide to your mortgage company, you may request the certificate of insurance via the web at www.imgoc.com and select “Certificate Request”.

Insurance Claims

If you feel you have an insurance claim, you must work through the Board. Your first call should be to our property manager – view the contact page to report the situation.

Comments and Suggestions for Discussion/Consideration with your Personal Agent

  1. Make sure you have the appropriate coverage for the $5,000 deductible.
  2. Loss Assessment coverage is available for each unit owner through their personal HO-6 policy.
  3. Damage to property of others damaged by your unit (for example, a leak) can be insured on an HO-6 form.
  4. A Broadening Endorsement should be added to the HO-6 form called HO-32 which provides “all risk” on permanent improvements, coverage A.
  5. Association coverage provides for repair / replacement of your unit back to the “original delivery condition at 1st closing. We continue to insure at 100% of replacement cost, rather than the allowed 80%. Additions and improvements beyond that original condition should be listed on your HO-6 coverage.
  6. Attached is a brochure with additional information from our agent.

We hope that you find this information useful in insuring and maintaining your unit at Bay Watch III.