Product Portfolio Configuration

This is CAU’s core admitted package policy product, a grouping of policies that includes first-party property and general liability to cover your association. Its coverage includes our four product differentiators, and you can include other coverages such as environmental impairment liability, equipment breakdown, and cyber risk insurance.

Guaranteed Replacement Cost 

• Residential buildings

• Garages – detached or attached

• Common area non-residential buildings

• Structural glass and attached signs

• Structures (e.g., cabanas, courts and fixtures, swimming pools)

• Building and structures above and below ground (e.g., pipes, wires, conduits, ducts, chutes, flues, balconies)

• Foundations for buildings, structures, and garages

• Community personal property (e.g., tools, construction machines, building supplies, valuable papers, and records.)

• Ordinance or law – for loss to the undamaged portion of the building

• Equipment breakdown, including ordinance or law coverages and ‘green’ upgrade to $10,000

Full Coverage – No Limit 

• Maintenance fees and assessments

• Increased period of restoration

• Community income

• Extra expenses

Property Coverages – All Policies 

• Demolition of the undamaged part of the building - $300,000 limit

• Increased cost of construction - $300,000 limit

• Bridges, bulkheads, docks, piers, retaining walls, wharves - $10,000 limit

• Worldwide crime coverages - $150,000 limit

• Newly acquired buildings and structures - $250,000 limit

No Deductible/Retention

• Extended reporting period – up to three years

• Natural property (named peril coverage)

• Pollutant cleanup and removal

• Removal of fallen trees

• Debris removal

• Personal effects

• Property removal

• Personal property of others

• Employee dishonesty

• Maintenance fees and assessments

• Computer fraud

• Increased period of restoration

• Depositors forgery

• Directors and officers liability (except where required by community income state statute)

• Extra expenses

General Liability Coverages – All Policies

• No general aggregate

• Hired auto and non-owned auto

• Property damage legal liability - $1,000,000 limit

• Advertising and personal injury

• Garage and parking area legal liability – $25,000 limit comprehensive/$25,000 limit collision

• Host liquor liability

• Contractual liability

• No charge for additional insured endorsements for off-premises meetings

• Committee members included as insureds

Directors & Officers Liability 

• Monetary damage claims – defense cost in addition to policy limits

• Defense costs for non-monetary claims

• Full prior acts

• Extended reporting period – up to three years

• Coverages included for elected or appointed board members, committee members, volunteers, employees, or member acting at the direction of the board of directors

• Option of counsel select endorsement 

Additional Coverages

• Environmental impairment liability

• Employee benefits liability

• Deductible credit endorsement

• Stop gap liability

• Deductible allowance endorsement

• Additional claims expense

• Earthquake and volcanic eruption

• Pesticide or herbicide applicator coverage

• Property manager endorsement – employee dishonesty

• Computer virus coverage

• Property manager endorsement – directors & officers liability

• Employee dishonesty – actual loss sustained (ALS)

Additional Provisions 

• No coinsurance

• No vacancy/unoccupancy condition

• No exclusion for unit owners injured in common areas under medical payment coverage

Ineligible Exposures 

• Occupancy ratio less than 80%

• Buildings with fire retardant plywood with no corrective action plan

• Timeshares with less than 70% of units/weeks sold

• Inadequate fire protections and life safety features

• Significant commercial exposures

• Irregularly shaped buildings

• Commercial and retail community associations

• Owned lakes in excess of 100 acres

• Office condominiums exceeding 50% of square foot area medical professional occupancies

• Fire, police, or medical facilities

• Frame and joisted masonry buildings that exceed five stories or $12,000,000 total insured value

• Contracted operations performed by association employees

• Masonry non-combustible buildings that exceed 10 stories

• Water slides

• Modified fire-resistive and fire-resistive buildings that exceed 35 stories

• Diving boards over one meter in height

• Buildings with aluminum wiring

• Buildings with polybutylene piping or galvanized piping with no corrective action plan

• Mobile home/trailer park/RV associations. Hotel/motel operations, weekly rentals, HUD, or student housing

Click here to inquire about more details.

Essentials coverage is for community associations with expanded exposures, such as those with higher rental percentages, student housing, and others. It is a package policy, a grouping of policies that includes first-party property and general liability to cover your association. Its coverage includes our four product differentiators, and you can include other coverages such as environmental impairment liability, equipment breakdown, and cyber risk insurance.

The most extensive policy of its kind, Coastal Advantage provides invaluable peace of mind that the community is protected from a broad array of coastal exposures. In a volatile risk climate Coastal Advantage, along with our four product differentiators, offers stability and strength for any kind of storm.

For community associations without access to the admitted program, CAU offers this excess and surplus line product.

Coverage

Coastal Advantage provides broad-scale coverage for a range of buildings and structures and is issued by an A+ AM Best-rated carrier. Coverage includes the following:

• Residential buildings

• Common area and non-residential buildings and structures

• Garages (detached or attached)

• Clubhouses

• Community personal property

• Foundations for buildings, structures, and garages

• Indoor, outdoor, and rooftop swimming pools

• Cabanas, gazebos, and other outdoor structures

Customization

Coastal Advantage provides the benefit of customized coverage at highly competitive rates, unlocking the following advantages:

• Premium valuations, including true guaranteed replacement cost, whereby there is no limit of insurance on the costs to repair or replace the property at the same site, subject to the policy’s other terms and conditions.

• Replacement cost

• Extended replacement cost (up to 25%)

Property Coverage – All Policies

• Equipment breakdown (including “green upgrade” and “power quality” improvement coverages)

• Ordinance or law

• Demolition and increased cost of construction

• No coinsurance

• No vacancy/unoccupancy condition

• Additional claim expense

• Consequential coverages, including maintenance fees, assessments, and community income

General Liability – All Policies

• No general aggregate limit

• No deductible

• Host liquor liability

• Hired auto and non-owned auto

• Board members, committee members, community managers, and unit owners are insureds

• Medical payment options ($5,000, $10,000, or choose to exclude it)

Crime Coverage

• Employee dishonesty, including the community manager

• Computer fraud

• Depositors forgery

• No charge for additional insured endorsements for off-premises meetings

Coverage Enhancement Options

• Earthquake

• Cyber

• Environmental impairment liability

Click here to inquire about more details.

For those community associations that need access to a liability-only product, CAU offers Liability Plus on an excess and surplus lines basis.

These properties face unique challenges when it comes to risk management. Because 100% of the units are rental-occupied and owned by a real estate investment firm, they require an approach that goes beyond basic coverage and protects the community association and its board of directors from new and emerging risks. Solutions is an excess and surplus product custom designed to address this new movement and provide vital coverage for these distinctive properties.

In response to a dramatic increase in pollution claims, many insurance companies have completely removed pollution from their policies. CAU’s Environmental Impairment Coverage Part provides valuable protection to community associations on a first and third party basis, and unlike other EIL policies, your CAU-designed coverage includes prior acts, provided, of course, you had no knowledge of the pollutants when coverage was placed into effect.

EIL provides protection against the following risks of financial loss:

• Bodily injury caused by pollution conditions

• Property damage, including damage to tangible property, the loss of use of such property that has not been physically injured or destroyed, and the diminished market value of a third party’s property

• Remediation expenses, including investigating the extent and nature of the pollutant and monitoring, removing, and disposing of the pollutant

• Defense costs incurred in the investigation, adjustment settlement, and defense of a claim

You may not believe your association has an exposure to pollution liability claims. Consider the following claims/cost situations. 

Standard Pipe Repair

While excavating to make pipe repairs, a previously unknown underground storage tank was discovered. Investigation reveals that the oil leaking from this tank has contaminated the soil and groundwater onsite and migrated to a neighboring community. The preliminary studies to determine the extent of contamination cost over $30,000, and the clean-up cost exceeds $175,000.

During Heavy Rain

An association routinely applies phosphorous-rich fertilizer to the community’s lawns. During heavy rain, the phosphorous is washed into a pond on a neighboring property. This overdose of phosphorous nutrients in the pond causes an algae bloom and severely harms aquatic life. Property damage and clean-up costs exceed $55,000.

Unknown PBCs Causing Cancer

Residents of a group of association buildings exhibit an unusually high rate of cancer-related symptoms. It is discovered, for the first time, that their buildings are on the site of a former lighting fixture manufacturer that used polychlorinated biphenyls (PCBs), a suspected carcinogen. Large quantities of PCBs are found in the soil under and around the affected buildings. Clean-up costs will top $200,000, and many lawsuits are now pending from the affected parties. Bodily injury awards may exceed $1 million.

Lead Poisoning in Children

In one community, high levels of lead are found during routine blood tests in children. Investigation of the matter reveals that these children have all regularly participated in activities in the community playroom. Tests showed the presence of lead-based paint in the community recreation building. Lawsuits for bodily injury are filed against the association. Settlements with the claimants will exceed $2,000,000.

CAU offers the following products from our partner carriers:

• Flood

• Umbrella

• Workers’ compensation

• Commercial auto

• Cyber

• Volunteer accident