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Cypress
Landing Master Homeowners Association
Insurance Coverage
May 14, 2007
DISCLAIMER:
THIS DOCUMENT IS FOR INFORMATION ONLY AND HAS NO LEGAL INTENT.
CYPRESS
LANDING OWNERS AND EMPLOYEES ARE ENCOURAGED TO USE IT FOR AN OVERVIEW OF
THE COMMUNITY’S INSURANCE COVERAGES.
HOWEVER, ANY PAYMENTS WOULD BE DEPENDENT ON EACH CIRCUMSTANCE.
IF ANYONE HAS DOUBTS THAT THIS COVERAGE MAY NOT BE ADEQUATE FOR
THEIR INVOLVEMENT IN COMMUNITY ACTIVITIES, THEY SHOULD CONSULT THEIR OWN
INSURANCE PROVIDERS. THEY
MAY BE MORE COMFORTABLE IN PURCHASING ADDITIONAL INSURANCE FOR
THEMSELVES.
This letter is to
give owners and residents an overview of the Cypress Landing Master Home
Owner Association insurance coverage.
We have paid a 2007 premium of $17,121 to Morris Insurance
Agency, Inc. The amount has
been included in our 2007 budget process and provides protection of our
property, members and funds.
General liability
provides protection for the HOA as a whole, its employees, and
individual members with respect to HOA liability.
It does not cover us as home owners or lot owners.
In the back of
everyone’s mind are likely two areas of concern:
-
What if there is
a loss or damage to the property assets that contribute so much to
the joy of living in Cypress Landing?
-
Since we are a
community of volunteers, what is my personal liability risk if I
participate in the many volunteer groups?
The outline of
current insurance coverage at the end of this document is a high level
listing. If you would like
more information on details of the coverage, you may ask Tomi Moody in
the HOA Office for a more specific document.
Cypress Landing
homeowners may take comfort in knowing that our insurance includes
coverage for Director and Officer Liability.
This provides confidence, in the unlikely event, someone were to
sue for damages against Board Members, Committee Member Volunteers or
Employees. For example:
-
Acting outside
of the scope of the organization’s by-laws and other governing
documents
-
Improper
oversight
-
Fiscal
mismanagement
Decisions of
directors and officers affect everyone who has a relationship with the
Cypress Landing Master Home Owners’ Association – regulatory agencies,
creditors, suppliers, home owners and property owners.
It is unrealistic to expect everyone to be satisfied with every
decision. The Director and
Officer Liability Coverage protects directors, officers, trustees,
employees, volunteers and members against claims arising from alleged
wrongful acts, unless it was an unlawful act.
Unlawful acts are not covered.
In general, Cypress
Landing residents should not have to fear that our personal assets are
at risk when we volunteer to perform work for the benefit of the HOA and
our Cypress Landing neighbors. Likewise our collective funds in the HOA
treasury are not at risk of having to pay high legal fees to cover the
defense, or payment, of claims made against our Directors, Officers,
Employees and Volunteers.
This coverage, and
the knowledge of its protection, encourages volunteerism without
apprehension of facing liability by dissatisfied individuals.
However, if there
were to be a judgment against the HOA for any amount not covered by the
insurance shown below, our Bylaws allow the HOA to assess members
unilaterally for necessary funds.
If anyone is concerned that the HOA may not be carrying
sufficient coverage for your involvement in the community, residents
should exercise the option of obtaining your own Umbrella Coverage.
Following is an
outline showing what groups are insured and the types of coverage:
1.
Insured:
1.1.
Cypress
Landing Master Homeowners Association
1.2.
Bay Ridge Homeowners Association
1.3.
Cypress Ridge Homeowners
Association, Inc.
1.4.
Fair Oaks Homeowners
Association, Inc.
1.5.
Fairview Owners Association,
Inc.
1.6.
All Members of
Association
2.
Types of current
coverage
2.1.
Property
2.1.1.
Value - $3,577,506
2.1.2.
Buildings and
contents of the following
2.1.2.1.
Main Clubhouse
B: $2,118,411
C: $100,926
2.1.2.2.
Pool House
B: $ 103,491
C: $ 32,388
2.1.2.3.
Swimming Pool
B: $ 360,000
2.1.2.4.
Fitness
Center
B: $ 315,000
C: $ 95,109
2.1.2.5.
Lap
Pool Building
B: $
12,000 C: $
12,281
2.1.2.6.
Lap Swimming Pool
B: $ 190,000
2.1.2.7.
Tennis
Court
Building
B: $
12,000 C: $
5,900
2.1.2.8.
Tennis Courts
B: $ 220,000
2.2.
General Liability – All members
of HOA and volunteer
workers included as insureds
2.2.1.
Bodily Injury and
Property Damage
2.2.2.
Premises/Operations
Liability
2.2.3.
Contractual
Liability
2.2.4.
Fire damage Legal
Liability
2.2.5.
Personal and
Advertising Injury
2.2.6.
Medical Payments
2.2.7.
Limits
2.2.7.1.
Per Occurrence
$1,000,000
2.2.7.2.
General Aggregate
$2,000.000
2.2.7.3.
Products & Completed
Operations $1,000,000
2.2.7.4.
Personal &
Advertising Injury
$1,000,000
2.2.7.5.
Fire Damage
$ 500,000
2.2.7.6.
Medical Payments
$
10,000
2.2.8.
Employee Benefit
Liability
2.2.8.1.
Per claim
$1,000,000
2.2.8.2.
Aggregate
$3,000,000
2.2.8.3.
Deductible
$
1,000
2.3.
Liquor Liability
2.3.1.
Limits
2.3.1.1.
Per Occurrence
$1,000,000
2.3.1.2.
General Aggregate
$2,000,000
2.4.
Crime Coverage
2.4.1.
Employee Dishonesty
(Volunteers included as employees)
$500,000
2.4.2.
Forgery or
Alteration Coverage
$ 25,000
2.4.3.
Theft,
Disappearance, and Destruction
2.4.3.1.
Inside
$ 25,000
2.4.3.2.
Outside
$ 25,000
2.5.
Machinery and Equipment Coverage
2.5.1.
Limit of Insurance
$100,000
2.5.2.
Deductible
$ 1,000
2.6.
Director and Officer Coverage
2.6.1.
The insurance
coverage depends on the legal determinations of a particular situation.
2.6.2.
Limit of Liability
$3,000,000
2.6.3.
Deductible
$
25,000
2.7.
Workers Compensation
2.7.1.
Bodily Injury by
Accident – each accident
$1,000,000
2.7.2.
Bodily Injury by
Disease
2.7.2.1.
Policy Limit
$1,000,000
2.7.2.2.
Each Employee
$1,000,000
2.8.
Commercial Umbrella Coverage
2.8.1.
Excess Limits over
Other Underlying Liabilities
2.8.2.
General, Non-Owned
Auto, Liquor, and Workers Compensation
2.8.3.
Limits
2.8.3.1.
Each Occurrence
$2,000,000
2.8.3.2.
Aggregate
$2,000,000
Again, if you would
like more details, please ask Tomi or Catherine in the HOA Office.
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