lovett19 Posted June 12, 2006 Share Posted June 12, 2006 I live in Montrose in a small community of 29 condos. Last night we had a homeowners' association meeting to hear some shocking news. We have an insurance policy that covers the common area (pool, garage, sidewalks) and also covers our structures (roof & exteriors). Our policy runs from June to June, so we were up for renewal a few weeks ago. Our property management company informed us that we are now required to carry "Named Storm Insurance". They told us that the Named Storm Insurance was not optional -- we had to buy it, or else we wouldn't be insured at all. Okay, here's the kicker: this Named Storm Insurance represents a 270% increase to our current rates. That pans out to be an increase of $110/month per condo. Needless to say, my neighbors were as shocked as I was when we were told that this increase will affect all of Houston, because we are considered to be a Tier 1 coastal city. I logged on to the Texas Department of Insurance's website and found that the only part of Harris County in Tier 1 lies east of Highway 146 (This includes the cities of La Porte, Morgans Point, Pasadena, Seabrook, and Shoreacres). If that's true, then our condos are not in Tier 1. Our property mgmt company is now telling us that they had to go out-of-state (Kentucky) to find a company that would insure us. Apparently they couldn't find insurance in the State of Texas. Is anyone out there (specifically, condo and/or townhome owners) experiencing the same thing we are?Sincerely,Lovett19 Link to comment Share on other sites More sharing options...
Subdude Posted June 12, 2006 Share Posted June 12, 2006 Holy cow! I have not heard anything like this from our condo association, and I sure hope I don't! Link to comment Share on other sites More sharing options...
lovett19 Posted June 13, 2006 Author Share Posted June 13, 2006 Holy cow! I have not heard anything like this from our condo association, and I sure hope I don't! Subdude, Well, we're getting our information from our property management company, who is a big national vendor that has many beachfront properties. We think they're lumping us all together (i.e., we are having to pay for the sins of others). My condo association is shopping around for another property mgmt company. If you're happy with yours, would you please let me know? We've got til the end of the month until the new premiums kick in. Sincerely, Lovett19 Link to comment Share on other sites More sharing options...
TJones Posted June 13, 2006 Share Posted June 13, 2006 First off, you are only responsible for the interior walls of your home. The Assoc. should be carrying a "blanket policy" to cover the exterior walls of your condos. Your Mortage Co. is only interested in that type of coverage also, the "blanket policy".Ask the Assoc. for the name and phone number of the AGENT who is carrying the blanket policy for the buildings. They have to provide this to you.You pay dues to the association every year so that they can pay for things like INSURANCE for the buildings themselves. You are only responsible for the interior walls and the contents ( your belongings) within.My mother has worked for State Farm about 20 years, she has NEVER heard of a "Named Storm" policy. This sounds like someone trying to justify their rates going up,and trying to SCARE you into believing it. I'll bet that you are NOT in a flood plain either. I don't know that they couldn't find someone here to insure them, it may be their timing, no companies write insurance once a "Named storm" is actually IN the Gulf. Link to comment Share on other sites More sharing options...
lovett19 Posted June 13, 2006 Author Share Posted June 13, 2006 First off, you are only responsible for the interior walls of your home. The Assoc. should be carrying a "blanket policy" to cover the exterior walls of your condos. Your Mortage Co. is only interested in that type of coverage also, the "blanket policy".Ask the Assoc. for the name and phone number of the AGENT who is carrying the blanket policy for the buildings. They have to provide this to you.You pay dues to the association every year so that they can pay for things like INSURANCE for the buildings themselves. You are only responsible for the interior walls and the contents ( your belongings) within.My mother has worked for State Farm about 20 years, she has NEVER heard of a "Named Storm" policy. This sounds like someone trying to justify their rates going up,and trying to SCARE you into believing it. I'll bet that you are NOT in a flood plain either. I don't know that they couldn't find someone here to insure them, it may be their timing, no companies write insurance once a "Named storm" is actually IN the Gulf.TJones,First I've gotta say, I LOVE the cowbell.Yes, you are correct - my dues (a big chunk of it) goes to pay for the blanket policy, which covers the common area and the buildings themselves. I myself carry condo insurance for the contents of my place. My complex is in Montrose, and is not in a flood plain. However, I spoke with the Texas Department of Insurance, and they said they've been getting similar complaints from condo & townhouse associations in my area. He said that after looking into the matter, his theory is that our property management companies are dealing with "surplus lines" insurance companies. Apparently, they are NOT licenses by the State of Texas, yet it is still legal for them to sell insurance. Since they are not licensed by the State, they are not regulated by the State. And that means they can pretty much make up their own rules, such as requiring customers in Harris County to carry Named Storm Insurance, even though we are 45+ miles inland. I do not know WHY our property management company is dealing with a surplus lines company. The Texas Department of Insurance called them the "vultures" of the industry. Ask your Mom if she's heard of them. Maybe she has advice for us?Thank you!!!Lovett19 Link to comment Share on other sites More sharing options...
RedScare Posted June 13, 2006 Share Posted June 13, 2006 I used to live at Park Memorial Condos on Memorial at Detering. We used Prime Site. I was always uneasy with the insurance, though I sold before this year. I can give you a number of a friend who is on the HOA board there, if you PM me. He could tell you what they are doing insurance-wise. Link to comment Share on other sites More sharing options...
TJones Posted June 13, 2006 Share Posted June 13, 2006 My only advice would be to get the residents together for a another meeting, and let them know what you found out, and that your complex is NOT in a flood plain and is NOT in a Tier 1 disaster area. That what they are doing, while NOT illegal is definately not above boards, and that the consenus is that you folks would like to put it to a vote, as to whether or not to carry this EXTRA insurance, when it is not neccessary and is clearly just a scheme to justify getting money out of it's residents. Again I would also ask for the Agent name and number and get a copy of said policy to see what kind of coverage is actually being provided.What is the exact address, and I can look up what the requirements really are. just PM me.Also, it just seems like a big scare tactic, your current homeowners policy, if you have it, will cover the wind, hail, hurricane, etc. The insurance they are asking for covers THEM not you, but again, that is why you pay your dues, and I wouldn't pay one red cent over what my yearly dues are.BTW, thanks for the avatar compliment, In my opinion, a top 3 of Will Ferrel skits. Link to comment Share on other sites More sharing options...
TJones Posted June 13, 2006 Share Posted June 13, 2006 Ok, Lovett, your condo is in an "X" flood plain, which means you are highly unlikely to flood, meaning that if you had a "single family home" in that same spot, you would get preffered rates from State Farm, and a Mortgage company would not even require you to HAVE flood insurance on the property. The existing policy that the condos have in place already should cover it, there is NO windstorm inclusion on properties in Houston,meaning, you DON"T have to have it if you don't want it, this extra "policy" is OVERKILL. You need to contact this Dana lady,and ask for a "certificate of insurance" and find out what the blanket policy covers. SO you will also need to call the company that is handling the OTHER "original" policy, or is Dana handling both policies ?The only thing I can see what may have happened here is that the current insurance company said they are renewing the original insurance policy, but they are EXCLUDING the wind damage part of the policy and that the Management Co. needed to go elsewhere to get a wind damage policy to cover it. BUT, it is not a requirement for properties to have this in the city of Houston, it IS required in Galveston and Galveston County. I am a little fired up about this, and want to help you out as much as I can.You also need to find out if the Association's policy is considered a Commercial Property Policy. Also, let me ask again.....is the Association demanding you pay or you won't be covered ? Remember, YOU are not responsible for the bricks and rooves, you are responsible for the interior of the dwelling only. If they are saying that you have to pay or else, that's B.S., the only other kicker would be that they could possibly put a lien on the property for payment. I am trying to get everything together here, we WILL get to the bottom of this. Link to comment Share on other sites More sharing options...
lovett19 Posted June 13, 2006 Author Share Posted June 13, 2006 TJones,I am going to be calling the Condo Association together tomorrow night for a Special Meeting to discuss what you've told me. I will DEFINITELY obtain a copy of the "certificate of insurance" from Dana. Here's what I do know:About a week before our 'blanket' policy was due to expire on May 31st, our property mgmt company notified us that in order to renew the blanket policy we also had to buy the additional Named Storm Insurance policy. It was all or nothing. So our Condo Association had no choice but to buy it, since we only had a few days before the expiration. The cost of the Named Storm policy is 270% higher than our previous blanket policy. So the total cost has almost QUADRUPLED. Okay, now I realize that our blanket policy is paid out of our Association dues. However, this increase is SO dramatic, that we are going to have to raise our monthly maintenance fees unless we can resolve the situation. I mean, if we determine that our property mgmt company and/or the Broker made a gross error, we reserve the right to cancel the Named Storm policy and get a full refund. Right? Well, like I said, I'm going to share your info with the Association tomorrow night. But if you have any updates, just keep me posted. You're awesome for helping us out!Lovett19 Link to comment Share on other sites More sharing options...
TJones Posted June 13, 2006 Share Posted June 13, 2006 TJones,I am going to be calling the Condo Association together tomorrow night for a Special Meeting to discuss what you've told me. I will DEFINITELY obtain a copy of the "certificate of insurance" from Dana. Here's what I do know:About a week before our 'blanket' policy was due to expire on May 31st, PrimeSite notified us that in order to renew the blanket policy we also had to buy the additional Named Storm Insurance policy. It was all or nothing. So our Condo Association had no choice but to buy it, since we only had a few days before the expiration. The cost of the Named Storm policy is 270% higher than our previous blanket policy. So the total cost has almost QUADRUPLED. Okay, now I realize that our blanket policy is paid out of our Association dues. However, this increase is SO dramatic, that we are going to have to raise our monthly maintenance fees unless we can resolve the situation. I mean, if we determine that PrimeSite and/or Dana the Broker made a gross error, we reserve the right to cancel the Named Storm policy and get a full refund. Right? Well, like I said, I'm going to share your info with the Association tomorrow night. But if you have any updates, just keep me posted. You're awesome for helping us out!Lovett19You should also have the right to fire Prime Site. I don't buy the " you have the buy the all or nothing" scam from Prime Site. If the blanket policy was gonna be renewed IN FULL, then all existing coverage would be intact and you folks are not obligated to buy MORE uneccessary insurance. You should have had 30 days notice at least that rates were going to change. Ask when the Agent notified Prime Site of the the change in rates. Why is the Management Co. negotiating your insurance anyways, your "Elected" board of directors should be the ones to negotiate the insurance. This just seems ALL WRONG! Looks like The Board is giving Prime Site "Carte Blanche" here. Link to comment Share on other sites More sharing options...
lovett19 Posted June 14, 2006 Author Share Posted June 14, 2006 TJones,We asked Prime Site to provide a copy of the new policy and certificate of insurance. They told us that it would take 60 days. Is that legal? Should I just go directly to Dana (the insurance broker)?Also, last night I talked to someone on a condo association located in the same area as mine. They are also managed by Prime Site, and they have been told the same thing - that they MUST buy Named Storm Insurance (for an additional $60K) or else they would not be able to renew their blanket policy. When I informed him about all that I've learned, he seemed shocked. Prime Site told them the same thing they told us - that Montrose is in Tier 1, according to AIG Lexington Insurance. I'm going to forward more information to him today, related to the discussions I've had with you and with the Texas Department of Insurance.Sincerely,Lovett19 Link to comment Share on other sites More sharing options...
TJones Posted June 14, 2006 Share Posted June 14, 2006 TJones,We asked Prime Site to provide a copy of the new policy and certificate of insurance. They told us that it would take 60 days. Is that legal? Should I just go directly to Dana (the insurance broker)?Also, last night I talked to someone on a condo association located in the same area as mine. They are also managed by Prime Site, and they have been told the same thing - that they MUST buy Named Storm Insurance (for an additional $60K) or else they would not be able to renew their blanket policy. When I informed him about all that I've learned, he seemed shocked. Prime Site told them the same thing they told us - that Montrose is in Tier 1, according to AIG Lexington Insurance. I'm going to forward more information to him today, related to the discussions I've had with you and with the Texas Department of Insurance.Sincerely,Lovett19You need to tell prime Site that your Association is gonna look for a new insurance provider. Is AIG the company that was holding the policy before ? Yes, go directly to Dana, don't give anything up to Prime Site. They know you are on to them now probably, Dana should have a copy right there in her computer available for printing, and she can fax it over. 60 days , another B.S. tactic. Link to comment Share on other sites More sharing options...
sevfiv Posted June 14, 2006 Share Posted June 14, 2006 there was somethign about this on channel 11 last night, but i can't find anything online here it is: http://www.khou.com/news/local/stories/kho...e.83517d3d.html Link to comment Share on other sites More sharing options...
lovett19 Posted June 14, 2006 Author Share Posted June 14, 2006 Sevfiv,Thanks for providing that link! I read the report and all I've gotta say is: I feel like I've taken a crazy pill!! How can the State allow insurance companies to justify 500% rate hikes for Harris County residents by lumping us into Tier 1? I just can't believe that thousands of people are expected to 'bend over and take it'. Something is seriously, seriously wrong with the system.Sincerely,Lovett19 Link to comment Share on other sites More sharing options...
lovett19 Posted June 15, 2006 Author Share Posted June 15, 2006 Holy cow! I have not heard anything like this from our condo association, and I sure hope I don't! You might want to check the link that Sevfiv posted. It's a story that was reported on KHOU this week. This insurance problem is alot more widespread than I first imagined. Lovett19 Link to comment Share on other sites More sharing options...
lovett19 Posted July 31, 2006 Author Share Posted July 31, 2006 there was somethign about this on channel 11 last night, but i can't find anything online here it is: http://www.khou.com/news/local/stories/kho...e.83517d3d.html I was interviewed by the Chronicle about our insurance dilemma in Montrose. They ran the story on Saturday. Here's the link to it. http://www.chron.com/disp/story.mpl/headli...iz/4080470.html Link to comment Share on other sites More sharing options...
Pumapayam Posted August 2, 2006 Share Posted August 2, 2006 Yes, you are correct - my dues (a big chunk of it) goes to pay for the blanket policy, which covers the common area and the buildings themselves. I myself carry condo insurance for the contents of my place. My complex is in Montrose, and is not in a flood plain. Ditto. I think 1/3 of our total yearly dues goes to our insurance and it too went WAY up this year from named storms! Link to comment Share on other sites More sharing options...
MexAmerican_Moose Posted August 2, 2006 Share Posted August 2, 2006 damn...that sucks Link to comment Share on other sites More sharing options...
Pumapayam Posted August 6, 2006 Share Posted August 6, 2006 With such good luck this year, insurance costs better go back down.By this time last year we had 7 named storm, some with dangerous wind speeds.We have yet to have a hurricane so far. Link to comment Share on other sites More sharing options...
lovett19 Posted August 7, 2006 Author Share Posted August 7, 2006 With such good luck this year, insurance costs better go back down.By this time last year we had 7 named storm, some with dangerous wind speeds.We have yet to have a hurricane so far.Yeah, we're hoping that if the 2006 hurricane season goes easy on us, insurance companies might realize that there is a huge market waiting for them here in Houston. That would open the door for competition, and with any luck we won't have such a difficult time finding property insurance in 2007. Of course, we've still got to get thru August and September before I begin to ease up.Lovett19 Link to comment Share on other sites More sharing options...
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