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Insurance Update
Published: December 17, 2024
An update on general Association Business Matters
We trust this message finds you well. As the Managing Agent for the Windhaven Crossing Townhome Owner’s Association, Inc., we would like to provide you with some updates and clarification about the management of your community.
General Status of the Insurance Roof Claim:
Currently, the insurance has declined payment for the wind damage claim in Windhaven stating that repairs do not meet the 2% deductible. The insurance carrier hired their engineer to do roofing inspections and assess the extent of the roof damage. Not satisfied with their engineer’s report, the Association hired its own engineer to assess roof damages to have factual and verifiable information the Association could present to the insurance carrier. The report provided by the engineer hired by the Association contradicts the insurance carrier’s engineers report in most every circumstance. The carrier refused the engineer’s report obtained by the Association and continues to refuse to revise their initial assessment report. As a next step, the Association has hired a public adjuster, and we are currently waiting for the adjuster to communicate with the carrier and report back any change or progress the adjuster makes.
Deductible Information:
For transparency, we would like to also note the deductible on the master insurance policy is 2% of the Total Insured Value (TIV). When Essex took over as the managing agent, an additional policy commonly referred to as a “buy down policy” was added and with this additional policy, the deductible is reduced to1%. Based on the damage calculations, the deductible the Association could be responsible for is $750,000.00. In the event the Association did not have sufficient funds on hand to cover the deductible, an insurance assessment would then be levied to aid the Association in meeting the required deductible. Should this be required, the Association will notify owners well in advance providing details on the amount of the insurance assessment and the terms regarding due date.
The Solutions:
The storm damages occurred throughout the community. Storms are an act of nature and not something that anyone can control. Because the community consists of townhomes the coverage provided by the Association covers the exterior of the buildings and the roofs for the entire building and not just a portion. Additionally, the responsibility for maintenance and repairs of building exteriors and roofs is assigned to the Association and therefore, it is the Board of Directors who are tasked with the responsibility to make decision on the claim and the claim process. The Board cares about the opinions of the Owners and an outline of possible “General Solutions” has been provided for you below, however, keep in mind, the burden of decision is on the Board and the intent is to do what is best for the community as a whole taking into consideration all viable options worthy of consideration.
The general solutions are as follows:
- Settle with the insurance.
- Current approach
- Continue proceeding with the insurance investigation.
- Indeterminate timeline, at the discretion of the insurance company.
- It is the most affordable way to proceed.
- We have engaged an Insurance Adjuster who will better help exemplify our case to the insurance carrier as recommended by the Texas Department of Insurance.
- Pay for the damage out of pocket and fix it ourselves (with HOA funds)
- This would incur a large charge to every homeowner or at minimum to those owners whose unit is located within a damaged building.
- May hurt your chances of getting reimbursed any insurance funds from your home insurance carrier as proof of damage is vital to building a claim.
- Hire a lawyer in addition to support from Essex and its Executive Team.
- As you recall, the attorney present in the town hall meeting advised against filing suit as the likelihood of it being resolved promptly depletes drastically. As an example, he mentioned a suit he had just finished litigating that took over 11 years to settle.
- Townhome owners with extensive roof damage pay for their roofs to be fixed out of pocket.
- This is ill-advised because it opens the homeowner for litigation if further damage occurs by other homeowners.
A General Timeline of Events: (Click Here to review the Records of Communications)
March 2, 2023 – Windstorm event
March 3, 2023 – Emergency Tarping completed.
March 9, 2023 – Insurance carrier confirmed filing of claim and engaged David Morse and Associates to facilitate inspections.
March 15,2023 - adjuster from David Morse & Associates contacted management to schedule 2-day inspection.
March 28,2023 – various reported leaks repaired by HOA contractor.
April 5th& 6th, 2023– HOA contractor & management met onsite with insurance adjuster, Haag engineering firm and building consultant firm for inspections exterior and interior where access was available.
April 18th,2023 – continued interior inspections with adjuster & management.
April 24,2023 – Email communication to owners about obtaining loss assessment coverage.
June 22, 2023 – Engineer inspection report received from carrier.
June 29, 2023 – Advisory committee meeting
July 12, 2023 – Engaged HOA engineering firm.
July 20, 2023 – Received full HOA board approval to proceed with engineer inspection.
July 20, 2023 – re-tarping completed.
July 20, 2023 – Held Townhall meeting providing updates to owners & residents.
July 31st– August 4th, 2023- HOA engineer inspection exterior and interior
August 23rd– 25th –Continued engineer inspection of interior of remaining units
September 8th,2023 – continued engineer inspection of interior of remaining units
September 29th,2023 – received HOA engineer report.
October 12,2023 – Advisory Committee Meeting reviewing HOA engineer report page by page.
October 20th,2023 – sent correspondence to carrier regarding HOA engineer report noting discrepancies.
November 2,2023 – corresponded with carrier regarding engineer report.
November 15,2023 – received correspondence from carrier that HOA engineer report was not being considered and report/determination from June 2023 was still valid.
December 2023 – General re-tarping performed throughout property and sealing of any new leak prone areas.
January 30,2024 – public adjuster engaged by HOA.
February 6,2024 – Townhall meeting with owners & residents
*Note, this is a high-level summary pertaining to the insurance claim only and not considered an exhaustive list of dates and work completed by management regarding the insurance claim.
Resources and Contacts:
Windhaven Crossing Board of Directors Meeting 02/06/24: Windhaven- Board of Directors Meeting-20240206_162123-Meeting Recording.mp4
Windhaven Crossings Townhall Meeting 02/06/24: Windhaven Crossing - Townhall Meeting-20240206_170536-Meeting Recording.mp4
Windhaven Crossings 2023 – Present Records of Communications: Windhaven2023 - Present Records of Communications.pdf
Windhaven Crossings TOA Insurance Documents: Windhaven Crossing Townhomes, Townhome Owners Association, City of Lewisville, Texas, Insurance Documents
The Texas Department of Insurance: What if my insurance isn't paying enough? (texas.gov)
Essex HOA Contact information: Essex Management - Contact Us (essexhoa.com)
Windhaven Crossing Governing Documents: Windhaven Crossing Townhomes, Townhome Owners Association, City of Lewisville, Texas, Governing Documents
Want to get involved?: Signup for a committee here: Windhaven Crossing Townhomes- Join a Committee.
We hope these insights will help to provide clarity and address any questions you may have had. For further insight into the insurance discussion, make sure to watch the recorded Townhall meeting linked above! Should you require further assistance or have specific inquiries, feel free to reach out to us directly at Canderson@essexhoa.com or Kennedy@essexhoa.com.
Best regards,
Essex Association Management, L.P., Managing Agent,
On behalf of Windhaven Crossing Townhome Owner’s Association, Inc.
