DONíT WAIT TO REPORT A CLAIM
Eric Glazer, Esq.
Published June 24, 2019
Insurance is a very strange product. Everyone is scared to
death to be without it, but when itís time to put in a claim,
everyone is scared to death to use it.
Delay in reporting a claim to your insurance company can be a
costly mistake. Every policy contains provisions that require
the insured to report claims timely so that evidence is
preserved, witnesses can be spoken to and the insurance company
has the opportunity to reduce its potential exposure. In condos
and HOAs there are so many times of claims that need to be
timely reported and if not do so, can result in a complete and
total defense to the insurance company providing any defense or
Let me give you an example of how an HOA can untimely report a
potential claim to their carrier. Suppose the HOA does not get
served with a lawsuit, but instead gets served with a demand for
pre-suit mediation? I have seen some associations fail to tell
their liability or D&O Carrier about the mediation demand and
instead allow their HOA attorney to deal with it. If the case
fails to settle at mediation and the association gets sued, the
association then decides to notify their carrier. Too late.
The carrier was required to know about the demand for pre-suit
mediation. The carrier will now take the position that they are
no longer under any obligation to defend the association or pay
the claimant any damages because they were prejudiced by not
being told about the mediation. They will claim that they could
have potentially settled the case at mediation for a fraction of
what it will now cost to try in court or settle.
Hereís the bottom lineÖ..if the board or management company
receives a letter or e-mail from someone who claims they were
injured on the condominium property or that their unit, car or
property was damaged at the condominium, or threatens a lawsuit,
arbitration or mediation --- NOTIFY YOUR INSURANCE AGENT OR
Worse comes to worse, the carrier may say the claim is premature
because you have not actually been sued. Thatís a lot
better than being told by the carrier that you blew the deadline
to notify them of the claim, and now there is no coverage.
Youíre paying for the coverage. Donít be afraid to use it.
HOA & Condo Blog
Eric Glazer graduated from
the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for more than 2
decades and is the owner of Glazer
and Associates, P.A. a seven attorney law firm with offices in
Fort Lauderdale and Orlando and satellite offices in Naples,
Fort Myers and Tampa.
Since 2009, Eric has been the host
of Condo Craze and HOAs, a weekly one hour radio show that airs
at noon each Sunday on 850 WFTL.
He is the first attorney in the
State of Florida that designed a course that certifies
condominium residents as eligible to serve on a condominium
Board of Directors and has now certified more than 10,000
Floridians all across the state. He is certified as a Circuit
Court Mediator by The Florida Supreme Court and has mediated
dozens of disputes between associations and unit owners. Eric
also devotes significant time to advancing legislation in the
best interest of Florida community association members.