will kick in to help replace those items that were damaged. It is important to make sure the association has a separate personal property limit.
Each year, there are occurrences of riots in cities across the U.S. and the damage can be extensive. However, 2020 saw a historic rise in both the number of claims filed and the severity of the losses. Property Claims Services, a notable civil disorder claims tracker, qualifies any loss that incurs over $25 million dollars in damage as a catastrophe. Between May 26th and June 8th of 2020, the total insured losses were more than any year prior, resulting in over 1 billion dollars in losses. With claims increasing, it is important to understand how this affects community associations. Community associations, like any business, are subject to unpredictable events that are tied to the insured’s location. Community associations in urban areas statistically have had higher chances of incurring civil unrest and filing these claims, but 2020 has shown there is still concern for suburban associations. Last year saw an increase in civil unrest in suburban areas across the country as well. Does this mean that every association should be boarding up windows? Absolutely not. But it is important to understand these events are not tied to a metropolitan radius. These situations can lead to another important topic around sufficient ordinance coverages. A large enough loss can cause the city, village, or town to invoke an ordinance that involves an upgrade to the association. For example,
it is now an ordinance in the city of Chicago that high-rises downtown over 80 feet need to have sprinkler systems. If one of those community associations suffers a large loss and the City comes out and mandates the installation of sprinklers after an inspection, the costs for the association could be extensive. Having an adequate Ordinance C limit (increase cost of construction) is critical. Ordinance A, B, and C are all coverages that should be included in your package policy.
2020 was certainly a vexing year for many, but the insurance industry remains a consistent safety net, giving peace of mind to individuals, businesses, and community associations across America. Insurance gives community associations protection from threatening risks like civil unrest. No one can predict when a riot will occur and most believe they are far from harm’s way, but 2020 has shown community associations nationwide that they need to be prepared and have measures put in place to protect their assets. It is important for every community association to understand their coverages, to make sure that they are properly covered, and to have a trusted advisor they can rely on to guide them through the onerous process of understanding their insurance. Like both Jack and Jill climbing up the hill, no association should tackle this task alone.
Innovating community association
allianceassociationbank.com Top 10 - Forbes Best Banks
Meet Your Community Association Banking Experts:
Diane White, CMCA Vice President
Joanne Haluska, CMCA, AMS
All offers of credit are subject to credit approval. Alliance Association Bank, a division of Western Alliance Bank, Member FDIC.
24 | COMMON INTEREST® • Spring 2021 • A Publication of CAI-Illinois Chapter
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
