Managing underwriter Advanced E&S Group has launched a business income policy for community associations featuring maintenance interruption insurance designed to aid condominium and homeowner associations reduce their exposure to loss of assessment income.
As community associations prepare their budgets for 2014, they are able to face an absence of money flow and bad debt by reason of damage to the premises or another downturn throughout the economy, that can now be insured. Unlike traditional business income Advanced E&S’s policy covers loss of assessment income. The policy responds to both traditionally insured and normally non-insured events with up to $1 million of coverage. Loss payments will continue for up to four years following a covered event.
There is a 30 day deductible for loss of maintenance income by using damage to the property covered under any ISO special peril form. In some states, an additional 150 day deductible applies to losses because wind, hail, earthquake or flood. Moreover, any loss of maintenance payments for any reason is covered with a 180 day deductible. This extension of coverage includes delinquent unit owners who're already behind in maintenance payments by at the very least six months.
Advanced  E&S Group is managing underwriter of specialty property insurance including programs for community associations.
