Dear CHOA members,
I am pleased to report that yesterday the CHOA board approved the following motion:
Move to increase the deductible for loss on our HOA home insurance from $10,000 to $25,000.
Rationale: State Farm indicated significant potential savings for our HOA. This adjustment will lead to reduced insurance costs for each CHOA member. Even if the owner’s personal insurance premiums increase slightly, the overall financial benefit is anticipated to be favorable for all. The average savings to CHOA members next year will be $191.82. Savings vary depending upon the square footage of each home and their total CHOA HOA premium paid. Keep in mind that this is not a one-time savings. It will continue each year as long as we maintain this policy.
This new insurance policy will take effect on June 1. It is very important that each CHOA member checks with their home insurance agent to determine if, or to what extent their personal insurance will need to be changed. It may help if you ask your agent about loss assessment/HO6 under your “Additional Coverage” or “Coverage and Endorsements”. The terminology will differ depending upon your provider.
The Board also passed a second motion:
Move to reduce the medical limit on our HOA insurance from $15,000 to $10,000.
Rationale: This coverage pays the medical bills of guests who are injured on shared CHOA property (not your personal property) regardless of fault. It’s intended to keep small claims from ballooning into large liability lawsuits. However, in CHOAs case, and with other associations, these claims are far and few between. And, because the $15,000 coverage limit is not “standard,” State Farm must manually calculate and enter over 600 lines of data each time we want to make changes to the policy. If we reduce the policy to the standard $10,000 Medical Payments coverage, it will reduce our premium slightly and allow State Farm to be faster and more accurate in providing future quotes.
You do not need to make any changes in your policy related to this motion.
Randy Hitz, CHOA President