Videos

Expert News

(For CAMs) Structural & Non Structural Reserves Expert Reserve Webinar from July 24

Reserves Structural and Traditional - How to Navigate in the Coming Years!

Featuring the Following Information:
- Brief History
- SB 4D
- Milestone Inspections
- Structural Integrity Reserve Study (SIRS)
- Important Association Requirements

(For CAMs) Structural & Non Structural Reserves Expert Reserve Webinar from July 24

Reserves Structural and Traditional - How to Navigate in the Coming ...

(For Board Members) Structural & Non Structural Reserves Expert Reserve Webinar from July 17

What You Need to Know About the New Requirements for Reserve Studies ...

Understanding Replacement Cost Valuation

Understanding Replacement Cost Valuation with Dave & Anastasia ...

Myths and Realities Regarding Reserve Studies

Anastasia and Dave Kolodzik founders of Expert Reserve Services, Inc. ...

Make Sure You Are Properly Insured

Hi. This is Dave Kolodzik with Expert Reserve Services. Today we are ...

Hi. This is Dave Kolodzik with Expert Reserve Services. Today we are going to talk about what happens when your association does not maintain the correct amount of insurance coverage ...and how a properly produced replacement cost valuation report can help.

It is always important to maintain enough insurance coverage to replace your structures if a total loss was to occur. In fact, it is so important that the Florida legislature made it a law back in 2007 that all residential condominium associations had to have a Replacement Cost Valuation - or insurance appraisal as some people call it - done on a regular basis to make sure that the correct coverage is maintained.

The problem is that some associations either don’t know that the law exists or feels that they don’t want to have the amount of coverage they need because they don’t want to pay more premium. Besides - nothing major is going to happen to them, right? That is until it does!

Boards of Directors need to realize that it is their fiduciary responsibility to make sure that enough insurance protection is maintained. Hurricane Ian is a perfect example of why we should not become complacent when it comes to maintaining the proper amount of insurance coverage.

Several associations in Southwest Florida found out only too late that they did not have the correct amount of insurance coverage in place to handle the damage inflicted by Ian. The result was adding a huge financial burden on top of the emotional devastation after a major event like this.

As I mentioned earlier - the State of Florida under Statue 718.111(11) a makes it mandatory that condominium associations have a replacement cost valuation done at least every 36 months. However, in today's economy that is not often enough. With inflation at a 30 year high and construction costs skyrocketing, many boards consider it their responsibility to have these done annually to make sure that the association is properly protected. In 2021 alone construction costs in Florida increased by an average of 14.7%

Also, Hurricane Ian brought up the importance of having Flood coverage. The vast majority of flood damage from this storm was in areas that were not previously prone to flooding and therefore people did not have insurance coverage to protect them from this peril. If you do not have Flood coverage, I urge you to look into it. The cost is usually fairly low in comparison, but one bad flood occurrence and it could ruin you if you don’t have the coverage in place.

As always you can contact me or anyone at Expert Reserve Services to answer any questions that you might have. Please feel free to call or email us!

info@ExpertReserveServices.com | 386-677-8886 or Toll Free: 866-480-8236

For more information visit: https://expertreserveservices.com/

#expertreserveservices #insuranceappraisalexpert #golf #courses #country #club #hotels #motels #apartments #condominiumassociations #homeownerassociations #churches #insuranceappraisal #expertinspectors #reservestudy[+] Show More

Expert Reserve Services - 3 Different Levels of Reserve Studies

M. Anastasia Kolodzik talks about the 3 Levels of Reserve Studies. ...

Expert Reserve Services - Are You Aware of Your Legal Requirements to Have Enough Insurance?

Dave Kolodzik, CRVS, PPIA has good advice on this subject. Watch this ...

Dave Kolodzik, CRVS, PPIA has good advice on this subject. Watch this 4-minute video packed full of information. We also invite you to visit our website at https://expertreserveservices.com/

Hi. I'm Dave ...Kolodzik with Expert Reserve Services. My job is overseeing the replacement cost valuations for our client. I have over 20 years of experience and more than 6,000 insurance appraisals under my belt.

I get asked almost every week by Board members "What is a replacement cost valuation and why do we have to have one done". The response to everyone is simple - as an elected member of the board of directors, it is their fiduciary responsibility to make sure that the association, or organization, is properly insured.

If the association is a condominium they are legally required by Florida law to have a replacement cost valuation conducted at a minimum of every 36 months. This applies to all condominium associations that contain residential units - regardless of the size or their individual by-laws.
A replacement cost valuation sometimes called an insurance appraisal, is an inspection and report to determine what the cost would be to replace the property if a total loss was to occur. Therefore - how much does it need to be insured for? This is different from the other types of 'appraisals' that you might be familiar with - a real estate appraisal would determine the resale value, whereas a tax appraisal is when the local taxing authority places a value for property tax purposes. All three of these consider totally different things and should not be confused.

in 2007 the Florida Legislature made it a law, by Statute 718.111(11)a, that condominiums must have a replacement cost valuation conducted at least every 3 years. This was the result of the devastating hurricanes that hit the State in 2004. It was determined that many of the condominium associations impacted by the storms were badly underinsured. Prior to this legislation, it was up to the associations themselves, as the insured or their insurance carrier, to estimate what the amount would be that they should be insured for.

I also get asked what happens if we don't get a replacement cost valuation done. Many insurance carriers will not write a policy unless the condominium association has a current RCV report on file. But remember, it is currently not up to the insurance carriers to enforce this. It is the legal responsibility of the Board of Directors to make sure they are in compliance with State law. As to what action can the State take, failing to comply with Florida Statutes allows the Florida Department of Business & Professional Regulation to take action and fine the association up to $5,000 per violation.

The cost of having these required inspections and reports done is inexpensive, especially compared to the cost of finding out that you are underinsured in the event of an insurance claim - or the potential fine that could be imposed.

If you have any questions about replacement cost valuations, please feel free to call or email me.

Don’t Get Penalized for Being Underinsured

If you insure your home for less than its full replacement cost, you need to be aware of two possible claim penalties.

Put simply, homeowner’s policies essentially state that if you insure your home for a depreciated value (in this case $250,000), then the insurance company will settle with you on a depreciated basis.

To ensure that you are protecting your investment, you must always insure your home for 100% of the cost to rebuild it today. Most insurance companies will not let you insure your home for less than 100% replacement cost when you buy a policy, but it is up to you to make sure you keep up with building cost inflation after you buy the policy. It is dangerous to sit on your policy year after year, assuming it is still adequate.

Please call or email Expert Reserve Services. We're happy to help out! info@ExpertReserveServices.com | 386-677-8886 or Toll Free: 866-480-8236

For more information visit: https://expertreserveservices.com/

#expertreserveservices #insuranceappraisalexpert #golf #courses #country #club #hotels #motels #apartments #condominiumassociations #homeownerassociations #churches #insuranceappraisal #expertinspectors #reservestudy[+] Show More

Expert Reserve Services - Proper Funding Method

Expert Reserve Services have a total of over 25 years’ experience ...

Expert Reserve Services - Wind vs Flood Valuations

Hi. This is Dave Kolodzik again with Expert Reserve Services. Today we ...

Hi. This is Dave Kolodzik again with Expert Reserve Services. Today we are going to talk about the difference between Hazard / Wind valuations versus Flood valuations.

Wind and hazard coverage ...covers different things for association than flood coverage does. The liability for insurance coverage for condominium associations is split between the association's policy and the unit owners.

The easiest way to break it down is for Hazard / Wind coverage the unit owner is responsible for everything inside the unfinished sheetrock on the walls & ceilings. This would include the paint, tile or wallpaper on the interior walls and ceilings. It also includes any coverings on the floors - tiling, carpet, wood floor or vinyl. Other items that the unit owner is responsible for would include electrical fixtures, appliances, air handlers, water heaters, cabinets, plumbing fixtures, and of course all furnishings.

The association is responsible for everything from the sheetrock on the walls outward. This would include the roof, exterior walls, interior wall studs & sheetrock, floors (concrete or frame), and all common area contents - both what the association normally insures as well as the ones that the unit owner is usually responsible for.

For flood coverage - if there is an association policy in place it covers everything structurally. With the exception of contents (that would include furniture and personal items), the association's policy would cover everything that the unit owner combined with the association's hazard policy would cover together. Additionally, flood insurance policies through FEMA also cover the structure's foundation - hazard coverage excludes the foundation.

I was formerly a Florida licensed insurance claims adjuster. With that experience, I always recommend that everyone consider flood coverage - even if they are not in a FEMA flood zone where it might be required. Remember every year over 25% of flood damage occurs in areas that are not in a named flood zone. That is one of the reasons that the flood maps seem to be constantly changing.

Your replacement cost valuation report should contain a chart showing what the association and the unit owner are liable for in the event of a claim, and should be insured for. There would be two charts - one for hazard/wind coverage and another for flood. Our reports always have these charts to better understand what the replacement values cover.

If you have any questions, or would like us to provide you with copies of these charts
- please call or email Expert Reserve Services. We're happy to help out! info@ExpertReserveServices.com | 386-677-8886 or Toll Free: 866-480-8236

For more information visit: https://expertreserveservices.com/

#expertreserveservices #insuranceappraisalexpert #golf #courses #country #club #hotels #motels #apartments #condominiumassociations #homeownerassociations #churches #insuranceappraisal #expertinspectors #reservestudy[+] Show More

Structural Integrity Reserve Study

"Structural integrity reserve study" means a study of the reserve ...

Expert Reserve Services - Have You Checked Your Association's Reserves?

Reserve Studies In Florida Are Insurance For The Uninsurables. A ...

Expert Reserve Services -Why Are Component Schedules Important?

Component Schedules and how this drives the funding plan. THE DRIVING ...

(For CAMs) Structural & Non Structural Reserves Expert Reserve Webinar from July 24

Services

Quick Links

Reserve Study