The board recently took emergency action and increased dues in order to fund a huge insurance increase. The association struggled to find coverage at any price in the wake of Hurricane Sandy as the existing policy expired on New Year’s Eve. Over 25 carriers refused to even supply a quote. The initial fire insurance premium increased 52% over last year’s amount, and insurance is the single largest line item in the budget. Ultimately, we negotiated a policy with much larger deductible that still required a dues increase of approximately $20.70 per unit per month. This was needed after “borrowing” approximately $85,000 from the reserves (the association had to pay most of the premium up front and also collect additional funds for anticipated renewal in 2014).
We also need to inform you that the deductible dramatically increased. The association intends to “self insure” the difference between the $10,000 deductible previously available and the $50,000 deductible that is now required. We urge extreme caution in treating the master policy only as catastrophic loss protection, knowing that any future claim is likely to result in cancellation.
New Statements reflecting the revised 2013 dues have been mailed out. If you have provided the Association Manager with your e-mail address, an electronic statement should have been emailed as well.