URGENT NOTICE re: your HO-6 insurance policy. Kindly reply RECEIVED to this email

URGENTLY IMPORTANT: Please contact the insurance Agent that provides coverage for your required home insurance (HO-6) policy to assure that your coverage values are sufficient to protect you from potential risks based on increasing replacement costs.  https://ridgeview.fyi/resources/insurance-information/  This website link contains the information* that you should discuss with your Agent to assess your current coverage.

Last November we discussed at the annual meeting that we expected a significant increase in our insurance premium for the Master Condo Policy – as increasingly large claims in the dwelling market nationwide are impacting rates in every state.  Carriers are exiting the habitational market coast to coast leaving fewer carriers with much less competition and little incentive to quote due to rising replacement costs, increasing wind/hail claims and more destructive named storms.

We sought competitive quotes persistently for months and the good news is, we’ve been able to acquire coverage at a rate much lower than expected, and at least for the next year, have been spared the massive increases that many condo associations have experienced.  As an example, our Agency just renewed a policy for a different Condo Association for an annual premium of $270,000, their expiring premium had been $115,000! The path to this year’s coverage was rather complex and materialized only after we were rejected by nine underwriters.**  We received a quote from only one underwriter that was two and a half times our current premium with less coverage and higher deductibles.  Briefly, we thought we may have to seek coverage of last resort directly from the State of NC, but thankfully, with some persistence from the Agency we’ve worked with for over two decades, they managed to secure a favorable quote in tandem with another Agency in eastern NC and we are pleased to announce that this new coverage is officially bound for the next year.  Both Agents involved in writing this coverage assured us that our opportunity to obtain such favorable coverage is due to the fact that we have not had a single claim in 10 years.

Kudos are in order to all Owners that have been vigilant in following safe practices within their homes and have been careful and observant in common areas to prevent risks.  If you have a pet in resident, please assure that your pet is properly registered with the Association and that your personal policy specifically holds the Condo Association harmless for any/all pet related claims.  Pet registration is important to assure that only breeds permitted by our insurance carrier are in residence to prevent cancellation of our policy due to non-compliance.

Thanks to all for your past and continued vigilance to assure we are able to secure the best rates possible.

It’s important to note, our policy is not intended to cover most common losses (like losses due to water damage from plumbing fixture failures).  The Ridgeview Master Policy carries a high deductible and is only in place to provide walls out coverage for catastrophic losses. Owners should provide their own policy to cover deductibles, loss of use, replacement of all interior components in the event of casualty loss (including flooring, cabinets, electrical fixtures, appliances, etc.), coverage for water damage, and all insurable contents. Details of the coverage you should have in place with your insurer is recapped below:

Our policy is a “walls out” coverage policy. Please take this opportunity to review your coverage with your agent and assure that your HO policy includes “walls in” replacement as well as contents coverage. Your insurance would be responsible for finishing walls, floors, all lighting and plumbing fixtures as well as replacing all appliances and cabinets. You should also plan for coverage for the cost of being displaced from your home should a catastrophic event occur.

Additionally, we further recommend that you speak with your agent about LOSS ASSESSMENT RISK. This coverage should be adequate for the $25,000.00 deductible that exists on the HOA policy, as the first $25,000 of any claim would not be covered by either Ridgeview or Ridgeview’s insurance.

You may want to increase your LOSS ASSESSMENT COVERAGE for liability purposes as well. In the event that Ridgeview was named in a lawsuit and was liable for an award that exceeds the $1 million coverage provided by our policy, you can add loss assessment coverage to your policy to cover any assessment by the HOA that would be necessary to pay the costs to you that the Association would be obligated to assess.  Adding $50,000 to cover such assessments should be available for minimal additional cost. We recommend that you discuss adding this to your policy as it is a small price to pay to potentially save your home or savings against a major liability judgment.