Expert Reserve Services, Inc




Expert Reserve Services - Wind vs Flood Valuations

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! | 386-677-8886 or Toll Free: 866-480-8236

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