Condominium

Owner’s

Insurance:

Selecting Coverage

That Meets Your

Needs & Expectations

Hideaway Beach Condominium Association Presented by:

Ron Lazarto & Gregory W. Havemeier

Contact

Ron Lazarto

Private Risk Services Client Advisor,

Partner 239.435.7159

rlazarto@gulfshoreinsurance.com

Gregory W. Havemeier

Senior Vice President, Partner

239.435.7106

ghavemeier@gulfshoreinsurance.com

*unit owner insurance

*association insurance

Today’s Agenda Florida Condo Unit Owners

Insurance Market

• Factors that influence capacity

• Types of insurance companies

available

• Importance of financial stability

Understanding Your Condo Unit

Owner’s Insurance

• Florida Statute 718.111 – What is

the unit owner responsible for?

• Coverage Considerations for a

Well-Designed HO-6 Policy

• Applicable Credits

• Seasonal Unit Owners

Today’s Agenda

continued

Private Risk Services – Our

Approach to Risk Management

• National AM Best Rated Carriers

• Benefits of Package

• Client Profile

• Service Platform & Claims Division

The Florida Condo Unit Owner’s

Insurance Market

Capacity • Varies each year depending on recent and future storm

activity

• Availability also based on underwriting requirements (including hurricane protection, roof age/type, distance to tidal water,

primary vs secondary occupancy, masonry vs frame construction,

coverage limits, etc.)

• The Irma affect is already being felt. We expect several

carriers to adjust their coverage to exclude wind driven rain

• Rate increases are expected

Types of Insurance Companies

1. Florida Domiciled Companies • Majority launched in the past 5-15 years to help insure Florida

properties as capacity is limited.

• These are Admitted Companies, which are regulated by the

Florida Office of Insurance Regulation.

• Due to their limited size and balance sheets, they often don’t

qualify for AM Best financial stability ratings. Instead they are

rated by Demotech.

• Mono-line companies capping coverage offerings up to $2M.

Types of Insurance Companies

2. Excess Surplus Lines (or Non-Admitted) • Typically national or international companies holding financial

ratings from AM Best.

• NOT regulated by the state. Enables companies to change

coverage or implement rate adjustments at their own discretion.

• Non-Admitted markets can’t be used unless Admitted markets

unavailable.

• Many E/S companies offer very broad form coverage and

design products for high-end homes and condo units.

Types of Insurance Companies

3. High Net Worth Specialty Providers • Gulfshore Insurance represents the top AM Best rated

insurance companies specializing in package solutions for

successful families.

• Our preference is to place our clients with these Admitted

companies based on their broad form coverage, financial

stability and proven track record of settling claims promptly and

fairly.

The Importance of Financial Stability

• Gulfshore Insurance Private

Risk Services will always seek

to find risk management

solutions provided by AM Best

rated companies.

• AM Best’s Financial Strength

Rating is based on

comprehensive quantitative and

qualitative evaluation of a

company’s balance sheet,

operating performance, and

business profile.

The Importance of Financial Stability

• To earn an AM Best rating, companies typically have to have a diversified book of business spanning over multiple states offering several different lines of coverage.

• Demotech ratings apply typically when a company only offers home/condo coverage in the state of Florida. Their website provides a 3-year snapshot of a company’s financials. Some Demotech rated carriers are better than others.

Understanding Your Condo Unit

Owners Insurance

FL Statute 718.111 – What is the unit owner responsible for?

• All personal property including major appliances

• Floor coverings

• Wall coverings

• Electrical and plumbing fixtures

• Built-in cabinets and countertops

• Window treatments (including curtains, blinds, and hardware)

• All improvements or betterments made to unit

Coverage Considerations for a

Well-Designed HO-6 Policy:

Coverage A: “Additions and Alterations” • Estimated replacement cost of the structural items that are the unit

owner’s responsibility.

• We recommend a minimum starting point of $150-$300 per living foot

for luxury condo units. Some units require higher limits.

• Some companies allow the agent to decide the coverage limit while

others will perform a post binding appraisal.

Coverage Considerations for a

Well-Designed HO-6 Policy:

Coverage C: “Personal Property” • Includes furniture, electronics, major appliances, clothing, dishware

and any other items that can be picked up and removed.

• Items that should be insured separately include jewelry, fine arts,

antiques and wine.

*Confirm if your policy provides ‘special perils’ versus ‘named perils’.

The former provides broader form coverage (i.e. damage from roof

leaks, damage to flooring from paint and/or wine).

sewer backup. Florida domiciled companies limit the coverage to

$5,000. The non-admitted and high net worth companies offer much

higher coverage.

Equipment Breakdown – Caused by mechanical or electrical

breakdown which are not covered by condo policy. Protects the

systems used to power your unit (i.e. TVs, smart home systems,

appliances, lighting systems, etc.). Typical peril is electrical damage

caused by power surge. Covers replacement and repairs as needed.

Mold – Florida mandates that Admitted

companies include $10,000 in coverage.

*Our agency recommends increasing this

to $50,000.

Water Backup – Damage resulting from

Loss Assessment – Covers assessments from association for the unit owner’s share of a property loss to the building or common areas that is not covered by the commercial policy OR is the result of a commercial policy deductible.

• If the unit owner policy excludes wind, any wind related assessment won’t be covered.

• Florida domiciled companies typically limit coverage to $2K or $5K and may limit coverage if the assessment is from a commercial policy deductible. High net worth carriers offer limits starting at $50K.

• Some companies have a deductible while some don’t.

• Some companies will exclude assessments stemming from loss to common areas.

• Coverage is company specific!

Personal Liability – Our agency recommends that you carry between $300K and $500K. We also recommend that you purchase an Umbrella policy with extended liability coverage.

Flood – Association already provides the maximum $250,000 per unit for dwelling coverage. Unit owners have the option to purchase Content Only coverage from FEMA. Excess Flood also available if higher limits are desired.

Wind Related Deductibles – Policy will either include Wind or Hurricane deductible. The deductible will either be per occurrence or calendar year.

Good Neighbor – The high net worth companies will pay between $2K and $15K to pay for damages to your neighbors unit stemming from water related losses within your unit.

Applicable Credits

• Wind Mitigation Credits (per building and per unit)

• Alarm systems

• Gated, guarded, patrolled communities

• 24/7 manned lobby

• Security cameras in lobby and/or elevators

• Package credits

• Sprinkler system

• Water leak detection system

Seasonally Occupied Units

• A surcharge could apply depending on

seasonal or secondary occupancy

• A home watch service is highly

recommended. Not a friend, or a neighbor,

but a professional that will check in the unit

on a regular basis.

Private Risk Services – Our Approach

to Risk Management

• Preference to working with AM Best

rated carriers. Our specialty is offering

package solutions through AIG, Chubb,

Cincinnati, and PURE.

• The package offers many benefits

including 1 agent, 1 insurance

company, 1 effective date, and 1

invoice.

• The package avoids gaps and overlaps

in coverage which often occurs when

clients are insured by multiple

companies and agents.

Private Risk Services – Our Approach

to Risk Management

• Client Profile = Consultative

questionnaire with focus on liability

coverage, trusts/LLC’s, travel

coverage, D&O coverage for non-

profit boards, domestic employees,

defense coverage.

• Pro-active service with unprompted

touch points throughout the year, a

thorough renewal review and access

to our in-house claims team.

Contact

Ron Lazarto

Private Risk Services Client Advisor, Partner

239.435.7159

rlazarto@gulfshoreinsurance.com

Gregory W. Havemeier

Senior Vice President, Partner

239.435.7106

ghavemeier@gulfshoreinsurance.com

“ Our main focus at Gulfshore

Insurance is to deliver service that

creates a consistently impeccable

experience for all of our clients. Every

day, the team is looking for ways to

enhance our client interactions. We

truly value our relationships and

want our clients to know how much

we care about them.”

- Brad Havemeier, President

www.GulfshoreInsurance.com | 239.261.3646

Our Expertise

We specialize in managing

personal risk for high net

worth individuals and

families.

Our Commitment

To deliver a consistently

impeccable experience

Our Promise

To protect our clients’

privacy

Our Motivation

To be the “1st choice”

Where relationships

& trust are built.

Personalized & collaborative approach

Each client at Gulfshore Insurance - Private Risk Services is assigned a

dedicated Client Advisor and Account Executive who are responsible

for implementing our seven-step Personal Risk Management Program.

Our experienced team takes a collaborative approach with our clients.

We utilize our proprietary Personal Risk Assessment to identify their

unique risks and exposures, while uncovering their preferences and

expectations should a future loss occur. We analyze existing insurance

policies to identify potential gaps in coverage and highlight program

deficiencies that expose clients to unnecessary loss.

Multiple options & clear recommendations

We represent the top-rated insurance companies that provide

insurance protection for high net worth families. These companies

offer the broadest coverage options and most specialized services in

the marketplace. Our Client Advisors approach each company with

our clients’ insurance profiles and summarize their risk management

needs. We ultimately recommend a risk management program based

upon long-term stability, service capabilities, and most suitable terms

and conditions.

Keeping pace with evolving needs

After new risk management plans are put into effect, our Account

Executives remain available to address newly acquired assets or

significant lifestyle changes. Our annual Protection Review ensures

each program keeps pace with our clients’ evolving needs.

Compassionate claims support

In the event of a loss, our in-house Claims Advocate processes the

initial claim on the client’s behalf and monitors its progress to ensure

fair and prompt settlement.

Personal Risk

Management Program

The Gulfshore Story At a glance...

Gulfshore Insurance has been protecting our clients since 1970. Today,

we have over 100 professionals serving our clients with the highest levels

of honesty, sincerity, and integrity while managing their business and

personal risk. Over the years, we have built relationships and trust with

many of the most admired insurers in the world, allowing us – as an

independent insurance agency – to provide our clients access to the most

comprehensive and competitive insurance programs available. At our

core, we are committed to delivering a consistently impeccable

experience.

We proudly serve more than 10,000 clients and more than

$100,000,000 in annual premiums.

Our trusted advisors have extensive experience handling the

insurance needs of clients both locally and nationally.

More than 80 percent of the staff are licensed professionals.

In the community...

Gulfshore Insurance is headquartered in Naples, Florida, with offices in

Fort Lauderdale, Fort Myers, and Marco Island. Giving back to the

community is an everyday part of what we do. We recognize that healthy,

thriving communities depend on involved citizens, organizations, and

corporate partners for momentum.

Since the 2009 creation of our employee-driven “Helping Hearts,

Helping Hands,” this foundation has contributed to our community

through leadership, volunteerism and more than $100,000 of

fundraising support.

Our humanitarian philosophy is based upon the belief that a

successful organization has a genuine responsibility to contribute to

the overall well-being of the community.

Naples | Fort Lauderdale | Fort Myers | Marco Island | Sarasota

Trusted Advisor

Ron Lazarto, CPRIAClient Advisor, PartnerPrivate Risk Services

239.435.7159

rlazarto@gulfshoreinsurance.com

If you are interested in

learning more about the

services offered by Gulfshore

Insurance - Private Risk

Services, contact us today.

We look forward to serving

your risk management needs

and gaining your trust and

confidence through each

interaction with our team.

Mark and Sarah Butler were in their 60s and retired after selling their successful family business. As part of their retirement planning process, the Butler’s trust and estate attorney recommended they transfer ownership of their tangible assets (estimated value: $7 million) to two trusts and an LLC. A qualified personal residence trust was established for their $2-million residence in Naples, FL. A joint living trust was created for their personal property (value: $1 million) and their art and antique collection (estimated market value: $3 million). Their triple outboard fishing boat (estimated valued: $600,000) was titled in the name of a newly created LLC. The LLC was then titled in the name of the living trust.

The trusts and LLC were formally established

Protecting your assets owned in the name of a trust or LLC

www.GulfshoreInsurance.com | 239.261.3646

Syncing your estate plan & risk management plan

It has become very commonfor affluent clients to follow

their estate planning attorneys’ recommendations to transfer ownership of their properties, fine art and watercraft to a newly established trust or limited liability corporation (LLC). While these are often prudent steps within an estate preservation strategy, they can create unforeseen pitfalls with related insurance policies, threatening clients’ assets in the event of future losses.

It’s important to discuss the ownership structure to ensure that all parties’ interests are properly accounted for within insurance policies. In many situations, homeowners have transferred their home into a trust, which makes them tenants in what was previously their home. These trusts are known as qualified personal residence trusts, and are more complex than a standard living trust where owners remain as the trustee and have complete control over the property.

With a qualified personal residence trust, the owners are granted the right to continue living in the home, but the ownership structure is different, which will have insurance implications. The following case study is intended to: 1) illustrate the potential costs associated with non-cohesive risk management and estate plans, and 2) encourage additional dialogue between clients and their legal and insurance advisors to properly account for their evolving needs.

and the titles of the residence and the watercraft were amended. The Butlers appointed their oldest son Michael as the trustee of the qualified personal trust. Mark and Sarah were then legal tenants of the residence. No changes were made to their related insurance policies. Mark and Sarah Butler remained the “named insured” listed on the homeowners, watercraft and personal umbrella policies.

Now consider the following claims scenarios:

Devastating Fire While the Butlers were out for the evening, a defective electrical appliance started a fire that destroyed their home and all of their personal property. The estimated total damage was $5 million ($2 million

Meet the Butlers

for the home, $1 million for the personal property and $3 million for the art and antiques). As part of the claims settlement process, the company’s adjuster pulled the title of the home and uncovered that the home was legally owned in the name of a trust with Michael Butler as the trustee. Further investigation determined that the artwork and the personal property were also considered tangible assets owned in the name of a separate trust.

The Outcome Neither the trusts nor Michael as the trustee, were

listed on the policy as an insured, additional insured, or additional interest. The existing insurance policies listed Mark and Sarah as the named insured but they had no documented legal ownership of the home, the personal property, nor the art and antique collection. The insurance company denied the related property claims. Mark and Sarah were limited to collecting only for their additional living expenses following the fire (as they were documented tenants of the residence). The uninsured property loss netted a $5 million reduction in the value of their estate.

Tragic Accident Mark and Sarah were enjoying a day at sea on their boat with their friends, Adam and Karen Metcalf. The couples had enjoyed many seasons fishing and

water-skiing together in the Southwest Florida waters. Mark unfortunately lost control of the boat while Karen was water-skiing behind it, which caused her to strike the water at a high rate of speed. She suffered a broken femur and pelvis and a severe spinal injury. The Coast Guard airlifted Karen to the hospital. Her rehabilitation process took more than two years, and she was unable to return to her position as National Sales Director for a multi-national pharmaceutical company. Despite their friendship of more than 15 years, the Metcalf’s brought a suit against Mark Butler and the owner of the boat: the newly created LLC. The jury awarded Karen $5 million ($2.5 million against the Butlers and $2.5 million against the LLC).

The Outcome Mark and Sarah’s primary watercraft and personal umbrella policies fortunately responded, covering the $2.5 million judgment and their related defense costs. However, since the LLC was not listed as a named insured or additional insured on either policy, there was no insurance coverage afforded to it. The Metcalf’s’ attorney then pursued the total assets of the LLC to cover the outstanding $2.5 million judgment. The $600,000 boat was the only asset owned by the LLC and was sold quickly for $400,000; the proceeds were awarded to the Metcalf’s, for a net loss of $600,000 to the Butler’s estate.

While each case is unique and requires specific attention, there are few common insurance solutions for such situations. Clients are encouraged to create an open dialogue between their trust and estate attorney and their insurance advisor. By disclosing the assets owned in the name of an estate, trust or LLC, your insurance agent can determine the best method of insuring the physical properties and potential liability exposures.

It’s important to work with

an insurance agency familiar with the evolving needs of affluent and high-net-worth individuals and families. Gulfshore Insurance has served such families since 1970, and our Private Risk Services team specializes in personal risk management programs that help protect our clients’ assets and lifestyles. We want to be the 1st choice when clients and their network of trusted advisors need sound advice on any insurance related matter.

Determining the proper insurance solutionTrusted Advisor

Ron Lazarto, CPRIAClient Advisor, PartnerPrivate Risk Services(239) 435-7159rlazarato@GulfshoreInsurance.com

Liability Coverage

“Why Coverage Limits Matter”

Type of Loss Loss Description Verdict and/or Settlement

Liability Realtor walking around insured’s property prior to sale fell over raised

door saddle, suffered nine foot fall down cellar staircase. Realtor suffered

C6 paraplegia.

$24,600,000

Liability Construction worker doing renovations at insured’s home fell 12 feet

from ladder suffering serious head and brain injury.

$11,000,000

*Plaintiff alleged dangerous work

conditions as contributing factor to fall.

Liability Person doing tree trimming for client was severely injured; extensive

burns and loss of limbs. Due to adverse legal venue and injuries, sought

settlement vs. litigation. Case potential could exceed policy limits

of $10,000,000.

$Restricted

*While insured was not negligent, final

settlement exhausted primary limits,

going into excess layer.

Liability Nineteen year old attending family 4th of July picnic at sister’s home,

injured by a firework. Eyesight lost in one eye along with

facial disfigurement.

$3,600,000

*Injured party (brother) sued sister and

brother-in-law for damages.

Liability Attorney found guilty of making a defamatory remark about a successful

real estate developer. Judge could not determine whether it was made as a

business comment or a personal comment, so he split the award.

$1,500,000

*$750,000 paid via professional liability

& $750,000 by personal. Had policy not

included personal injury client would

have been responsible for $750,000.

Liability Child injured in pool accident resulted in permanent paraplegia. $13,000,000

Liability Insured’s son pulled over for possible DUI got into an altercation with a

police officer who was injured.

$2,000,000

Liability During a party at insured’s home, female suffered multiple dog bites

during mauling– resulting in severe disfigurement.

$3,700,000

Auto DUI driver hit car with mother and child killing the child and severely

injuring the mother (Alleghany County, PA).

$15,500,000

Auto Four year-old boy injured in vehicle accident. Suffered debilitating

spinal cord injury.

$29,000,000

Auto Driver while test driving a new car lost control and crashed causing a

wrongful death lawsuit by salesman family.

$13,700,000

Auto Single mother, passenger in car at time of crash, suffered brain trauma

and loss of cognitive functions.

$5,500,000

*Client has $3,500,000 primary

& excess limits.

Watercraft Insured’s boat collided with another boat, killing a passenger in another

boat. The passenger was a co-owner of a successful business and high

income earner.

$6,500,000

*Insureds $5,500,000 limit was

inadequate and held personally

responsible for $1,000,000.

239.261.3646 gulfshoreinsurance.com

www.GulfshoreInsurance.com | 239.261.3646

Trusted Advisor

Ron Lazarto, CPRIA

Client Advisor, PartnerPrivate Risk Services

239.435.7159

rlazarto@gulfshoreinsurance.com

ypically, insurance policies (e.g., homeowners, automobile, and

watercraft) include initial limits of “primary” liability that responds

to legally based judgments against you or your family members. However,

these are commonly limited to $300,000 or $500,000, making them

inadequate in today’s litigious society where multi-million dollar

judgments are all too common: these judgments are based on current

and future earnings. In that event, an Excess Liability or “Umbrella”

policy kicks in when a lawsuit judgment exceeds the limit on your

homeowner’s and auto policies.

A key strategy in wealth preservation is the maintenance of

comprehensive personal liability protection. That’s why we urge our

clients to consider the maximum net worth they are willing to risk

should such lawsuits occur. Our agency has the ability to place up to

$100,000,000 in personal umbrella policies, and our recommendation is

to maintain Excess/Umbrella Liability protection at minimum limit of

$5,000,000.

We believe there are two key components that, whenever possible, be

included in a comprehensive Excess/Umbrella policy:

1) Uninsured/Underinsured Motorist - This important protection is

provided under most primary Automobile policies. It ensures that

a household member will be covered for injuries he/she receives

from a negligent driver. In the event of a qualifying accident, the

insurance company will pay the difference between what the

uninsured/underinsured driver can pay and what the injured

driver would be entitled to as if the uninsured motorist had

proper insurance in effect (covered also applies in “hit-and-

Gulfshore Insurance - Private Risk Services is committed to

protecting our clients’ assets and lifestyles. That’s why the

foundation of our Personal Risk Management Program is

personal liability protection.

Umbrella liability protection

A key to wealth preservation

T

Naples | Fort Lauderdale | Fort Myers | Marco Island | Sarasota

run” accidents). We encourage every client to purchase

additional limits of protection, which are available as an

endorsement to the Excess/Umbrella policy. This additional

protection covers the bodily injury damages they cause you or a

family member.

2) Ensuring a Proper Defense - Most clients are unaware of how

their defense would be managed by their insurance company in

the event of a lawsuit brought against them or a family member.

Three specific items to request include:

Outside the Limits – All covered defense costs are

“outside” the limit of Excess/Umbrella coverage, thus

preserving the full Excess/Umbrella coverage limit for

judgments against you.

Expanded Defense – A sub-limit of coverage will apply to

the reasonable expenses for your preferred law firm to

review and consult on the defense offered by the policy.

Reputational Damage – Some policies will also provide a

sub-limit to cover the fees of a public relations firm to

protect your reputation within your community.

Our clients’ needs evolve over time so we want to reinforce the

following coverage options that could be critical to maintaining a proper

Personal Liability Program. Please make your insurance advisor aware of

any related exposures that you or a family member may have to any of

the following:

Trusts, Estates, & LLC’s

If your properties, vehicles, watercraft, or aircraft are owned in the

name of an entity created for tax or liability purposes, be sure the

entity is named on your Primary and Excess/Umbrella policies as

an Additional Insured.

Employment Practices Liability

Covers lawsuits brought by private household staff for sexual

harassment, discrimination, and wrongful termination.

Non-Profit Director’s & Officer’s Liability

Protects unpaid board members or trustees of charitable

organizations against lawsuits involving a variety of wrongful acts

such as sexual harassment, discrimination, libel, slander, invasion

of privacy, wrongful termination, and plagiarism.

Family Trust Liability

Covers damages resulting from a negligent act, error/omission, or

breach of duty while serving as a trustee of a family trust.

Gulfshore Insurance has

been managing our clients’

business and personal risk

since 1970, and we are

committed to serving them

with the highest levels of

honesty, sincerity and

integrity. Our team has

extensive experience

handling the insurance

needs of clients both

locally and nationally.

Where relationships

& trust are built.

The process of selecting the Coverage A/building limit on the HO-6 unit owners form is a difficult task. The unit owner is the one who must make the selection

after careful analysis of what the costs to rebuild may be. It is better to err on the side of caution and have "a little too much coverage" come claim time. This

document is for general reference only and should not be construed as coverage. Final determination of coverage will be subject to Policy conditions.

Condominium vs. Unit Owner

Insurance Responsibilities

Building Component—Flood Insurance

Responsibility for Repairs from

Covered Cause of Loss

Unit Owner Association Estimated Cost

ALL HVAC (A/C Units, Distribution Duct Work, Diffusers, etc.) Responsible $

Appliances Responsible $

Baseboards, Window & Crown - Trim Molding Responsible $

Building Distribution Wiring Responsible $

Building Sewage Treatment Responsible $

Built-In Cabinets & Countertops Responsible $

Carpeting Responsible $

Common Areas (Pool & Deck, Pool House, Spa, Tennis Courts) Responsible $

Concrete Footings Responsible $

Drywall - Interior Load Bearing Responsible $

Drywall - Interior Non-Load Bearing Responsible $

Drywall - Perimeter Walls Responsible $

Drywall - Separation Fire Walls Responsible $

Entry Doors & Skylights Responsible $

Exterior Electric Fixtures, Fans, Light Fixtures Responsible $

Exterior Painting Responsible $

Exterior Siding Responsible $

Exterior Wall Framing Responsible $

Floor Finish (Staining, Pickling, etc.) Responsible $

Floor Framing Systems Responsible $

Flooring - Unfinished Responsible $

Foundation Walls Responsible $

Hurricane Shutters - Association Installed Responsible $

Hurricane Shutters - Unit Owner Installed Responsible $

Interior Doors Responsible $

Interior Electric Fixtures, Fans, Light Fixtures Responsible $

Interior Painting - Finish Coat Responsible $

Interior Painting - Prime Coat Responsible $

Interior Wall Framing Responsible $

Landscaping - Improved Landscaping Only Responsible $

Medicine Cabinets Responsible $

Plumbing Roughing Responsible $

Roofing Responsible $

Staircases - Interior or Structural Responsible $

Staircases - Unit Owner Installed Responsible $

Staircases-Exterior Responsible $

Toilets & Sinks Responsible $

Unit Electric Wiring Responsible $

Upgraded Moldings & Trim Responsible $

Vinyl or Ceramic Tile Responsible $

Wall & Ceiling Texture Responsible $

Wallpaper Responsible $

Window Treatments, Curtains, Drapes, Blinds & Related Hardware Responsible $

Windows Responsible $

The process of selecting the Coverage A/building limit on the HO-6 unit owners form is a difficult task. The unit owner is the one who must make the selection

after careful analysis of what the costs to rebuild may be. It is better to err on the side of caution and have "a little too much coverage" come claim time. This

document is for general reference only and should not be construed as coverage. Final determination of coverage will be subject to Policy conditions.

Responsibility for Repairs from Covered Cause of Loss

Building Component

Unit Owner Association Estimated Cost

ALL HVAC (A/C Units, Distribution Duct Work, Diffusers, etc.) Responsible $

Appliances Responsible $

Baseboards, Window & Crown - Trim Molding Responsible $

Building Distribution Wiring Responsible $

Building Sewage Treatment Responsible $

Built-In Cabinets & Countertops Responsible $

Carpeting Responsible $

Common Areas (Pool & Deck, Pool House, Spa, Tennis Courts) Responsible $

Concrete Footings Responsible $

Drywall - Interior Load Bearing Responsible $

Drywall - Interior Non-Load Bearing Responsible $

Drywall - Perimeter Walls Responsible $

Drywall - Separation Fire Walls Responsible $

Entry Doors & Skylights Responsible $

Exterior Electric Fixtures, Fans, Light Fixtures Responsible $

Exterior Painting Responsible $

Exterior Siding Responsible $

Exterior Wall Framing Responsible $

Floor Finish (Staining, Pickling, etc.) Responsible $

Floor Framing Systems Responsible $

Flooring - Unfinished Responsible $

Foundation Walls Responsible $

Hurricane Shutters - Association Installed Responsible $

Hurricane Shutters - Unit Owner Installed Responsible $

Interior Doors Responsible $

Interior Electric Fixtures, Fans, Light Fixtures Responsible $

Interior Painting - Finish Coat Responsible $

Interior Painting - Prime Coat Responsible $

Interior Wall Framing Responsible $

Landscaping - Improved Landscaping Only Responsible $

Medicine Cabinets Responsible $

Plumbing Roughing Responsible $

Roofing Responsible $

Staircases - Interior or Structural Responsible $

Staircases - Unit Owner Installed Responsible $

Staircases-Exterior Responsible $

Toilets & Sinks Responsible $

Unit Electric Wiring Responsible $

Upgraded Moldings & Trim Responsible $

Vinyl or Ceramic Tile Responsible $

Wall & Ceiling Texture Responsible $

Wallpaper Responsible $

Window Treatments, Curtains, Drapes, Blinds & Related Hardware Responsible $

Windows Responsible $

Condominium vs. Unit Owner

Insurance Responsibilities