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NASSAU HOUSE
ASSOCIATION TUESDAY, NOVEMBER 16, 2010 Board Members Present: Roy Regeski, Patrick Robinson, Marisa Schenke Abreu, Rick Battiato and Vivian Grieco Owners Present: 12 Roy called the meeting to order at 10:15 am Insurance Renewal: Our insurance agent with Smith Watson Parker joined the Board to discuss our insurance renewal. Last year we paid $147,000 for the Citizens policy, and with 20% renewal increase our premium will be over $180,000. Citizens is still recouping from 2004 and 2005 claims. Due to law changes, we have full replacement cost and association now has to insure all air conditioning in the building for claims due to casualty (owners are still responsible for maintenance of AC). Our property value is at $20,386,000; we have a 3% calendar year hurricane deductible of approximately $600,000. Alternate options are to go with a 3% per occurrence deductible (rather than calendar year deductible) and this would save us $10,000 in premium; or if we go with a 5% deductible which would be about a $1,000,000 deductible, then premium would drop to $150,000 for calendar year deductible and about $10,000 less for a per occurrence deductible. Roy asked how many hurricanes have we had in this area when we have two hits in one year at same place. Our agent said the calendar year deductible never became an issue until 2004 when we had four go through the middle of the state. We can save $30,000 if premium if we raise our deductible by $400,000. If the BOD would have to assess for the deductible, it would be more difficult to get the money from owners if we go with a higher deductible. Our agent said if Citizens suffered terrible losses in another area, we could get accessed even if we didn’t have a loss ourselves; and our goal should be to get away from Citizens. Roy said that is asking a lot because we cannot force people to put in new windows or shutters which would be required for other insurance companies to consider insuring our building. Citizens only offers basic peril policies and doesn’t cover water damage; we have a separate policy for water damage with a $2500 deductible. We can change the deductible to $5000 and save $3000 in premium on the policy to cover water damages. Agent suggested that we change deductible on the Differences in Conditions water damage policy. Agent then discussed the additional coverage lines with the Board. Roy recommended that we stay with the 3% deductible on the Citizens policy, and Board agreed. Management Company: Board discussed and agreed to contract with Integrity Property Management. It is a one year contract but can be cancelled at any time with 30 days notice. Roy wants to see proof of insurance and bonding prior to commencement. Motion was made to have the meeting adjourned and was seconded. Meeting adjourned at 11:45 a.m.
Minutes taken from tape. Cheryl Koski, Office Manager |
