Having homeowners’ association insurance is highly advisable so that the insurer can deal with different types of claims and so the community does not take on an incalculable financial risk. Even so, having good insurance does not guarantee complete peace of mind in every unexpected situation.
Claims Related to Weather Events
Problems related to weather can cause disputes, disagreements or misunderstandings between the parties involved, and this happens more often than many people think. Events such as rain, hail or snow may or may not be covered by community insurance, and there may also be differences depending on the intensity of these events.
Intensity of Weather Events
Many community insurance policies set certain intensity thresholds for weather events as a condition for receiving compensation. In these cases, the competent official bodies determine whether the levels reached match what is established in the contract.
It is also important to remember that some meteorological, geological or seismic events are covered by the Insurance Compensation Consortium (CCS).
Community Insurance Coverages
The main basic covers in homeowners’ association insurance include protection against rain, snow, hail, wind and lightning strikes. However, the policy wording must be reviewed carefully in order to understand exactly what is covered and the limits of compensation.
Catastrophes and the Insurance Compensation Consortium
In the case of catastrophes, not all damage caused by weather events is covered by insurance companies, because there are limits relating to the scale of the event. In these situations, the Insurance Compensation Consortium assumes responsibility for the cover. This applies to events such as earthquakes, tidal waves, volcanic eruptions, falling celestial bodies, extraordinary floods or large-scale storms.
Unlike insurance companies, which may send repairers to the insured property, the Consortium pays compensation in cash. In these cases, it is the insured party’s responsibility to hire the appropriate professionals and carry out the necessary works.
The Insurance Compensation Consortium acts immediately and provides additional financial support for reconstruction in situations involving extraordinary risks and officially declared disaster areas.
The Consortium Provides Cover When Insurance Has Been Taken Out
It is important to remember that, with certain exceptions, the Insurance Compensation Consortium only provides cover when an insurance policy has been taken out. Only when an area is officially declared a disaster area may it be possible to receive support without having an insurance policy, although this is exceptional and depends on the government in office.
The people responsible for the homeowners’ association should make sure they understand what the community insurance policy includes and why it is essential to keep it up to date and as complete as possible.
At the Madrid insurance brokerage VIDA SR, we are at your disposal to clarify any aspect of community insurance and to provide offers from leading insurers in the market.