Find out what is happening at CAINS Management, by reading our latests posts and information.

  • How to Request and Compare Insurance Quotes

    First, it is important to clarify the difference between an Independent Insurance Agent and a Direct Writing Agent – State Farm, Farmers, Allstate, etc. Independent Insurance Agents represent multiple carriers and work for the condo or HOA association and Direct Writing Agents represent one single carrier and work for the carrier.
  • The Dos and Don'ts of an HOA Newsletter

    Homeowners may be different people from home to home, but one thing that most homeowners have in common is the need to be kept in the know about their community and their HOA board. The tried and true HOA newsletter may come in print or circulated via email or be sent through social media updates, but regardless of its form, it’s still a valuable commodity that HOA’s should continue investing in.
  • It's Not Natural to Live In a Condominium or Co-Op

    In the event of damage, property managers, board members and residents are typically confused as to who is responsible for the loss.
  • How to handle hoarders in a condo or HOA

    We live in a society where erratic, awful behavior can be purposefully glamorized, particularly through reality TV. Consider the homeowner who throws nothing away, lives in filth and squalor and ends up the star of a TV show about clutter. Welcome to the horror of the hoarder.
  • HOA Homefront Fiduciary Duty

    The term “fiduciary duty” is often used, but with a misunderstanding of what it means. HOA directors are considered “fiduciaries” because they care for the community’s property and finances and are therefore in a position of trust.
  • 4 Arresting Reasons an HOA Board Need to Know The Law

    Understanding the law is no easy endeavor, especially if you’re an HOA board member busy volunteering to help the Association function properly. If we’re really being honest, who has the desire or time to spend trying to learn and interpret the law, especially when it comes to important issues in your homeowners association?
  • Personal Umbrella Claims

    Some insurance claims can seem unbelievable. A personal umbrella policy adds a crucial layer of asset protection above your insurance policy limits for accidents and claims that go beyond your wildest imagination. For example…
  • Crime, D&O, Cyber Coverage Claims Example

    Kevin Davis Insurance Services has a series of articles regarding crime, D&O, Cyber Claims Examples.  Download the pdf to read this information.
  • Coronavirus - What Should Condominium Assocations Do

    There has been an increase in U.S. Coronavirus cases, including eight deaths in Washington state, a case and death has been reported in New York and a case has been confirmed in Rhode Island. That has led to a number of questions from condominium boards to the effect of:  What should we do to protect the condominium and its members? What is our responsibility for the clubhouse, pool, workout area, playground, plumbing, HVAC system?” 
  • The Top Seven Reasons HOAs Get Sued

    Smart HOA boards need to know the answers to two questions: What are the most common reasons associations get sued? And how do they head off those costly cases? Here are answers.
  • Rules are a Necessary Component of HOA Living

    A significant portion of disputes between homeowners and homeowners associations relates to the enforcement of HOA rules and regulations that have been adopted by an association’s board of directors (“rules”). Such disputes frequently result from the fact that many people purchase properties that are part of a common interest development without reading the association’s governing documents, which include the rules that apply to the homeowners. As a result, they first learn about HOA rules that they are opposed to and resist complying with after the association commences some action against them for violating the rules (i.e. rules concerning the color a house can be painted). They then become embroiled in adversarial proceedings with their homeowners association and the individual directors and management personnel who seek to enforce the rules. The proceedings, which tend to become very divisive and costly to both sides, could possibly have been avoided if the homeowner(s) understood the content of the association’s rules before they purchased their property.
  • Insurance Is Not a Commodity - It's Not All About the Price

    Note: This guest post is by David Thompson, CPCU, AAI, API, CRIS, an instructor at the Florida Association of Insurance Agents for over 23 years. Prior to that he worked in a family-owned insurance agency for over ten years. He was a commissioned officer in the United States Army and the United States Coast Guard for eight years prior to beginning his insurance career. In his spare time, he smokes the world’s best BBQ.
  • HUD Issues Guidelines on Assistance Animals

    The U.S. Department of Housing and Urban Development (HUD) today announced the publication of guidance clarifying how housing providers can comply with the Fair Housing Act when assessing a person’s request to have an animal in housing to provide assistance because of a disability.  
  • Claims Really Matter

    The unit owner was in a pain-killer daze. She had surgery the day before and was recovering at her condo when she heard pounding on the door. It didn’t stop. Eventually, she heard her name. Then: FIRE! She jumped out of bed. It was 2 a.m. Outside, it was snowing. Christmas was two days away. Her next-door neighbor of 10 years died in the flames. He was found face down on the kitchen floor, next to a walker. Investigators said it looked like he fell and hit his head on the sink, according to the Ohio State Fire Marshal incident report. “It was sad. Awful. Tragic,” the unit owner said. “I never spent another night in my condo.” That’s because this was only the start of her troubles.
  • The Evolution of Directors & Officers Liability Coverage

    Graystone Manor, built in Salt Lake City, Utah in 1960, is believed to have been the first condominium in the continental United States. In those years, Directors and Officers (D&O) policies available to community associations were basic “non­profit D&O” forms, adapted from policies formerly covering Boards of museums, theater guilds, and symphonies. These early versions of D&O policies were affordable, but coverage was bare bones and limited the definition of “insured” to cover only “duly elected” Directors and Officers. Given the carrier’s strict adherence to this policy language, there was much room for improvement in this line of coverage.
  • Exercise Caution When Placing Directors & Officers Coverage

    Entering into an agreement to manage a community association nearly always results in the manager incurring vicarious liability for the board’s actions or failure to act. Vicarious liability is a legal doctrine that assigns liability for an injury to a person who did not cause the injury but who has a particular legal relationship to the person who did act negligently. The community manager is a professional who is providing advice and counsel to a volunteer, non-compensated board of directors, so it isn’t particularly surprising that the plaintiff’s attorneys always choose to name both the board of directors and community manager in nearly every lawsuit. The management agreement typically requires the association to indemnify and hold the community manager harmless except in cases of gross negligence or willful misconduct. Community association boards rely on insurance to help fund this obligation, but will insurance always protect the manager?
  • Today's Ransomware Epidemic - How to Protect & Respond

    *This bulletin is based on a November, 2019 article written by Craig Hoffman, David Kitchen, Ted Kobus and Anthony Valachof BakerHostetler with updates from Steve Robinson, National Cyber Practice Leader at Risk Placement Services, Inc. *
  • How to Improve Communication in Your Community

    First Service Residential has created a brochure, “How to Improve Communication In our Community: A Recipe for Association Success,” which we think is a great resource for Associations to use when communicating with their residents.
  • HUD Issues Guidelines on Reasonable Accommodations

    The U.S. Department of Housing and Urban Development (HUD) today announced the publication of guidance clarifying how housing providers can comply with the Fair Housing Act when assessing a person’s request to have an animal in housing to provide assistance because of a disability.  
  • Verifying Contractor Insurance Coverage with Certificates of Insurance

    Does your Association on Certificates of Insurance from their contractors.  Here is a great article to explain what COI’s are and how your association should protect itself from claims coming from contractors.
  • The Importance of Smoke Alarms

    Why you should have a smoke alarm in all your units.  Read this article by Community Association Underwriters of America for all the details.
  • Personal Risk Management Tips You Can Use

    IRMI has compiled personal risk management tips you can use to protect you, your personal assets, and your family.
  • Importance of having Directors & Officers Liability Insurance

    On The BoardBy Sherry Branson
  • How Pre-Fire Planning Can Save Your Property

    Advisen and Zurich have released a brochure on “how pre-fire planning can save your property”.
  • How do you interpret the "Per UNIT" Deductible?

    The “Per UNIT” deductible helps to put the interior losses in the UNIT owners control by having their personal HO-6 policy respond. 
  • Disaster Preparedness Strategies for Small Businesses

    Office Depot put together a brochure to help you protect your small businesses against disasters.
  • What is the Wrongful Employment Act?

    Wrongful employment act means any actual or alleged:
  • Top 10 Reasons to Purchase Rental Car Damage Waiver

    Author: Bill Wilson
  • Timely Association Insurance Tip from IRMI

    Properly Cover Your HO/Condo Association Loss Exposures
  • How best to cover Large Deductible Losses within an HOA Association?

    Midwest Home Insurance Carriers as well as Condominium and Homeowners Associations are experiencing a severe increase in the number of Wind and Hail losses and their severity. This means the insurance companies are losing money and therefore non-renewing &/or changing coverages. The main change in coverage for HOA’s is in establishing a higher ($5,000 per Building Min. up to $ 20,000) and/or a percentage (1% - 5% per Building Value) deductible on the HOA master Dwelling policy. Thus, there will be a larger number in situations where the HOA will come back to their homeowners (based on their documents) and create a “special assessment” to pay for the shortfall in the deductible. What is Loss Assessment?
  • Sustainable Insurance for High Risk Areas

    Officials are pushing “sustainable insurance” in areas of high risk and beyond, but what does that mean exactly?
  • Reducing Your Insurance Costs - Distinguishing Bad Advice from Good Advice

    Many Americans are struggling financially in the current economy, particularly those struck by lay-offs, and are faced with tough decisions about how to reduce expenses. As a result, much has been written in recent months about how to reduce insurance premiums as one aspect of a belt-tightening strategy. Unfortunately, too much of this advice has been BAD and much of this bad advice comes from consumer web sites and publications that have little understanding of insurance and risk management. The purpose of this article is to identify some of the bad advice being bandied about and to reinforce some of the good advice. It concludes with 10 reasonable things you can do to reduce your insurance costs.
  • Named Insured vs. Additional Named Insured

    Sometimes a contract calls for naming a party as an additional insured. On other occasions, it requests additional named insured status. So, what’s the difference and what are the advantages and disadvantages to the parties?
  • Insurance Recommendations for Owners/Residents

  • Handling Emergency Situations and Insurance Claims

    What’s the first thing you do when you get that frantic call about a unit flooding or a unit with a sewer back-up?  Do you ask the owner enough questions to allow you to assess the situation and figure out the next steps?  Or do you panic and start calling all available plumbers, attorneys, and insurance agents? Although it may seem counter-intuitive in emergency situations, the first thing to do is obtain the necessary information, organize your thoughts, and create a to-do list.  To assist you with this endeavor, below is a list of things to consider when you receive these types of calls. 
  • You Can't Run from Cyber Liability and Data Breach. . .

    . . . But You Cannot Outrun These Exposures Whether You Are FedEx or Del Boca Vista Condo Association.
  • Ways to Pay for Common Area Replacement Expenses

    In completing reserve studies for HOA and Condominium Communities we are always reminding Boards and Community Members that common area expenses will occur whether the necessary funds have been set aside or not. The expenses in our reserve study reports are real and to ignore them or just kick the expenses down the road are both fiscally irresponsible and not in the best interest of the community as a whole. While the expenses will occur communities typically have one of several options in how they are paid for and not all are created equally.
  • Ten Steps to a Well-Designed HO-6 Insurance Policy

    Request a copy of the association’s “declaration” document. Make a list of building items not covered by the association’s master policy (e.g., carpets, hardwood floors, tile floors, kitchen cabinets, plumbing and electrical fixtures serving the individual unit, built-in appliances, unit owner improvements.)  Have your client estimate the replacement cost of all structural items that are his or her responsibility. (The easiest and most accurate way to do this is to write a list of all such items and then have the client estimate the replacement cost of each.)  Ascertain the current master policy deductible as well as the maximum deductible authorized in the declaration. Choose the higher.  Add up the totals in Steps 2 and 3. Round up to allow for errors. That total should be the coverage limit for Coverage A.  Add “special perils” coverage to Coverage A, changing the perils covered from “named perils” to “all risks” unless excluded. This is important for three reasons: Your client is covered for more losses (e.g., water damage to walls and ceiling from roof leaks), your client has improved coverage for losses subject to the master policy deductible, and you broaden the HO-6’s loss assessment coverage to special perils from named perils.  Add special perils contents coverage (to cover damage to personal property from roof leaks, paint spills, etc.).  Add sewer backup and sump pump failure coverage. You want to do this for two reasons: first, to cover direct damage to the unit or contents from these two perils; second, to broaden the loss assessment coverage to include assessments for either peril. (loss assessment coverage applies only to assessments for losses from perils covered by the HO-6.)  Determine the need for flood or earthquake coverage.  Recommend that your client buy adequate liability coverage (e.g., $500,000) in limits equal to the client’s other personal liability coverages.  Urge the client to buy an umbrella policy. Be sure it includes coverage for association volunteer activities, including non-profit D&O, in case your client ever serves on the board.
  • Has YOur Agent Explained the Impact of a Property Co-insurance Provision?

    In a recent deposition in an insurance producer malpractice case, the producer was asked about the purpose of co-insurance and how our insured would be impacted under the provision if the building was underinsured. Unfortunately, the producer was unable to explain how the co-insurance provision worked or how the insured could be penalized. This prompted me to think maybe it’s time for a property co-insurance refresher.
  • Directors & Officers Insurance - Pick Your Policy Carefully!

    There are two kinds of directors-and officers insurance. Which one is right for your board? All HOA and condo boards should have directors-and-officers insurance, but it is important to understand the difference between the types of D&O coverage available as they are not one and the same. There are stand-alone and embedded D&O policies in the Master Policy, and one is far more comprehensive than the other.
  • Criminal Minds

    Is your community association properly protecting its funds against theft? Today’s newspapers are riddled with stories of trusted property managers and Board members embezzling large sums of money over long periods of time. Do not be the victim of a false sense of security just because your community has Fidelity coverage. Community associations are non‐profit organizations governed by volunteers, therefore they need unique coverages. Take a closer look at your Fidelity policy.
  • $12 Million Reasons Your Association Need Liability Insurance

    On January 16, 2011, Andrew Curtis, a nine-year-old boy, and his father were riding their bicycles on U.S. Highway 1 in the town of Jupiter, Florida. Andrew was following his father as the two approached the driveway of the Villas on the Green Condominiums. While Andrew’s father passed the driveway without incident, as Andrew began to cross, he was struck by a minivan.  Andrew was airlifted from the scene of the accident to St. Mary’s Medical Center, where doctors were unable to save his life. Andrew’s mother, filed a wrongful death claim against driver of the minivan, as well as property owner, Villas on the Green Condominium Association, Inc., and property management company,  M.M.I. of the Palm Beaches Inc. First, Plaintiff claimed that the driver failed to yield the right of way.