June 2018 Newsletter

V O L . 7 0 • J U N E 2 0 1 8 • W W W . B R O W A R D C O A L I T I O N . O R G
C O N N E C T I O N
SOUTH FLORIDA'S PREMIER
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JUNE 08, 2018 @ 11:00 AM
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OR BY PHONE 954-336-3335
What's Inside.
Insurance Reminders for Condo
Associations at Start of Hurricane Season.
“All-Risk” Insurance Policies Are Not Always
What They Appear To Be.
After the Hurricane, Associations Should
Approach the Rebuilding Process with Care.
June Meeting Hosted by
Sustainable Sprinkler
Meeting Topic:
Advanced Irrigation
The future is now!
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The President's Message
June 2018
C O N N E C T I O N
South Florida's Community Association
Publication serving Broward, Miami-Dade,
and Palm Beach Counties.
Board of Directors
1st Vice- President - Mary Molina-Macfie
2nd Vice -President - Toby Feuer
Treasurer - Carol Eskew
Secretary - Catherine Evanoff
Director - Jill Aronofsky
Director - Theresa Sortino
Director - John Perrini
Director - Ann Zucker
Director - Alison Kallman
Director - Joanne Sterner
Marketing Manager - Luis Alicea
Legislative Liason
Michael S. Bender, Esq.
Kaye Bender Rembaum
Lisa Magill, Esq.
Kaye Bender Rembaum
Corporate Council
Steven J. Weinberg, Esq.
Frank, Weinberg and Black
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Dear Broward Coalition Members,
It's official, the start of Hurricane Season
has begun. Tropical storms and Hurricanes
are a fact of life in our region. Researchers
have forecasted that the 2018 season will
be very active with 14 named storms. Of
those, they forecasted seven hurricanes,
three of which could be major Hurricanes.
This is the best time to start preparing for
the forecasted active Season. The first
thing you should do is build your Families
emergency kits that will last you 7 to 14
days after a storm. Stock your emergency
kits with enough food, water, clothes,
medicine, and essentials, well before the
peak of Hurricane Season. Visit Ready.gov
for more tips on preparing for Hurricane
Season.
June also marks the end of our Meeting
Season. As most of you know we take July,
and August to meet and prepare for the
new season. This year, we would like to
hear your suggestions. What do you want
to see, or hear for the 2018/2019 Season
meetings? Please email any suggestions to
marymacfie333@gmail.com
So in closing have an amazing Summer, and
stay safe. Enjoy your families, enjoy your
travels. Enjoy one of our beautiful
beaches. There's an empty beach chair
with an umbrella casting a shadow waiting
for you.
Warmest Regards,
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Mary Molina-Macfie
1st Vice-President

Insurance Reminders for Condo Associations
at Start of Hurricane Season
by Laura Manning-Hudson
SHRL Law
With hurricane season now underway, Florida condominium
associations should take the time to ensure
that they and their owners
are prepared for a storm.
In addition to ensuring
that hurricane shutters are
operational and all of the
necessary supplies are on
hand, associations should
communicate with owners
about insurance and liability
under state law.
Florida law requires associations
to maintain insurance
for all portions of the
condominium property as
originally installed in accordance
with the original plans and specifications, as well
as alterations or additions made to the condominium
property. Personal property, including floor, wall and
ceiling coverings (i.e., paint, wallpaper, wood flooring),
electrical fixtures, appliances, water heaters, water filters,
built-in cabinets and countertops, and window treatments
including curtains, drapes, blinds, and similar window
treatment components, located within a unit or that unit’s
limited common elements, and which serve only that unit,
are not covered by the association’s insurance policies. Unit
owners are responsible for maintaining their own insurance
coverage for these items.
At the start of every hurricane season, association
board members or property management should photograph
and/or video all of the main public areas of the condominium
property. These images could become vitally
important in the event that a storm strikes and claims are
filed. Associations should also take the time to store
copies of their wind, flood and property insurance policies
in waterproof cases in a secure location. If possible,
digital copies should also
be stored in several
computers and devices.
It is also good practice
for associations to develop
a hurricane policy and
distribute it to residents each
year reminding them of
all the things they need
to do to prepare for hurricane
season, including
ensuring that shutters are
operational, moving all
furniture inside before
they leave for the summer,
and taking pictures
of their personal property to keep as record evidence in
the case of a storm. Importantly, that hurricane policy
should also include a reminder of the importance of
maintaining their own homeowner’s insurance policies
to cover their personal property within their units and
their limited common elements. This communication
may also be used to request updated owner and resident
contact information, including cell phone numbers.
In the event of a loss, there could be a lot of
work to be done, and it is advisable to consult with
the association’s legal counsel and insurance consultants
to assist in reporting and filing any necessary
claims.
By taking all of these preparations, associations can
ensure that all of their insurance matters are in order and
they are ready for any storm-related claims that may arise.
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After the Hurricane,
Associations Should
Approach the Rebuilding
Process with Care
by Joseph Adams
Becker & Poliakoff
Four weeks after Hurricane Irma, most associations
have likely made progress in making temporary repairs
to damaged communities. This week’s column will focus
on the various issues that arise during the rebuilding
process that occur after the storm. Part of such process
includes selecting the appropriate contractor to perform
the work and ensuring that the association’s interests are
adequately protected. Associations should be aware of
the following issues that arise during the rebuilding process.
Legal review of proposed contracts is critical. During
prior hurricanes, many associations rushed to sign simple
contracts provided by contractors without contacting
their attorneys beforehand. Often, these “simple” form
contracts, only one or two pages in length, can be a
trap for associations. Such contracts were likely prepared
by an attorney representing the contractor, and
drafted to protect the contractor’s interest, rather than
the association’s interest. Further, attorneys for the association
should review any proposed construction contracts
before execution by the association, as many important
issues are often not addressed in these “simple” contracts,
such as indemnification, time of completion, scope of the
work, price, liquidated damages, bonding, and compliance
with lien laws, among other items.
Construction project-related disputes are common,
particularly when substantial repairs are necessary.
Such agreements should provide for both the informal
resolution of discrepancies in the field, as well as the formal
resolution of disputes. Prevailing parties should be
made whole, which includes awarding attorneys’ fees
incurred during the dispute resolution process.
Before any construction work begins, the association
should also contact its insurance carriers. Often, insurance
policies require that an insurance representative
conduct inspections prior to the start of construction.
Associations should ensure that only licensed and
qualified contractors are selected for the rebuilding
project. General contractors and many specialty
contractors must be registered with the state. It is
possible to check a contractor’s licenses and formal
complaints via an online search. References should
also be checked as part of this process. Further, bonding
should be discussed with your design professional and
counsel. Contractors should also carry adequate insurance
coverage. An association would typically seek to
be added as an additional insured under any such policies.
Both your insurance agent and attorney should assist in
ensuring that adequate insurance protection exists for
the association.
Design professionals such as architects or engineers
should be utilized during the rebuilding process, as they
can serve as an independent party to prepare or approve
specifications, without having a financial stake in developing
such specifications. Taking this step can help
avoid disputes over specifications and the scope of the
repairs. Independently-prepared specifications are also
important when the repairs involved are to portions of
pre-existing structures, or if the repairs involve compliance
with new codes.
Warranties should also be reviewed. Particularly,
manufacturer’s warranties are often of limited value. For
instance, if a warranty is only valid for so long as a contractor
or applicant is in business, such warranty is likely of no value
should your contractor go out of business.
In summary, the rebuilding process after the catastrophe
of a hurricane is an undertaking that requires
careful consideration by associations, with the assistance
of various professionals such as attorneys, insurance
carriers, and design professionals. As we have learned
from prior hurricanes, associations should not execute
any contract before performing its due diligence and
ensuring that any agreement entered into contains
adequate legal protection for the association.
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561-693-3160
www.citiquiethurricanewindows.com

Your board of directors has diligently met with the association’s
insurance agent. After many meetings and protracted
negotiations, the association purchases an “all-risk”
insurance policy. Not too long after, the association’s clubhouse
is damaged by hurricane force winds, water intrusion,
and possibly some faulty construction, too. Will the damage
be covered by the association’s insurer? This is what was
recently addressed on December 1, 2016 by the Supreme
Court of Florida in Sebo v. American Home Assurance
Company, Inc.
Sebo purchased a home in Naples, Florida in April,
2005, when it was four years old. He insured it for over
$8,000,000.00 with an “all-risk” insurance policy which
was specifically created for his residence. Shortly after he
bought the home, major water leaks caused by rainstorms
occurred and were reported to the property manager. Soon
it was apparent that the house suffered from major design
and construction defects. In fact, after one rainstorm “paint
along the windows just fell off the wall.” The residence
could not be repaired and was eventually torn down. On
two separate occasions, Sebo filed claims which were
denied, except for coverage in the amount of $50,000.00
for mold damage.
After a jury trial, the jurors found in favor of Sebo, and
the trial court entered a judgment against American Home
Assurance Company, Inc. However, the appellate court disagreed
with the trial court and reversed and remanded for
a new trial. The appellate court’s disagreement with the trial
court had to do with how the court should examine the
causation of loss. Due to a difference in rulings from different
appellate courts, the matter was decided by the Supreme
Court of Florida.
The main issue examined is when there are multiple
perils combined to create a loss and where at least one of
the perils is excluded by the terms of the policy, must the
insurer provide coverage under an “all-risk” policy? Should
“All-Risk” Insurance
Policies Are Not Always
What They Appear To Be
by Jeffrey A. Rembaum, Esq.
Kaye Bender Rembaum
the court have applied the “Efficient Proximate Cause”
theory, which provides that where there is a concurrence of
different causes, the one that set the others in motion (the
“efficient cause”) is the cause to which the loss is to be
attributed, or should the court have applied the “Concurrent
Cause Doctrine,” which provides that coverage may exist
where an insured risk constitutes a concurrent cause of the
loss even when the non-excluded cause is not the prime or
efficient cause of the peril?
In this case, Sebo argued that his insurer was required
to cover all losses under the “Concurrent Cause Doctrine.”
In making its determination, the Court noted that both rainwater
and hurricane winds combined with the defective
construction which caused the damage to Sebo’s property.
Ultimately, in reliance on and quoting an earlier case, the
Court found that “[w]here weather perils combine with
human negligence to cause a loss, it seems logical and
reasonable to find the loss covered by an all-risk policy
even if one of the causes is excluded from coverage.”
Ultimately, the Court found that because the insurer did not
explicitly avoid applying the “Concurrent Cause Doctrine,”
the Court found that the plain language of the insurance
policy did not preclude Sebo’s coverage under his “all-risk”
policy.
The ever important “take away” from this case is that if
your association has a policy that excludes the “Concurrent
Cause Doctrine,” then in the event there are multiple perils
that caused the casualty and one of the perils is excluded
from coverage, then the association’s insurance company
may, in fact, be able to deny coverage based on the singular
exclusion, notwithstanding the coverage which may have
been available for the other perils had the excluded peril not
been part of the casualty causing event.
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DARYL COLE
IN CONCERT
June 9, 2018
8:00 PM
JULIAN RUSSELL
& CHERRILL RAE
June 23, 2018
8:00 PM
Call: 954-748-3230 Ext. 1
Box Office Hours: Mon-Fri. 9:00am - 2:00pm
Wednesday Hours: 9:00am - 8:00pm
For More information
emai: marian@sunriselakesphase 4.org
Get Your Tickets Today!
Low Price $8.00 - Including Coffee & Cake
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The Theater at
Sunrise Lakes 4
10102 Sunrise Lakes Blvd.
Sunrise, Florida 33322

Hire a law firm
you can trust.
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Offices in Miami-Dade, Broward and Palm Beach
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Dedicated to the Representation of Community Associations
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