INSURANCE DISCLOSURE

Please review the Annual Disclosure in regards the Keys property protection insurance policies and take note of the $50,000 deductible contained therein for the property policy. This relates directly to the TKPOA Townhomes and Property Owner vs. Association responsibility.

Frist, keep in mind that our townhomes are not “condominiums”. Condominiums are a type of shared structure where owners have less responsibility for the cost of repairs to their units. Townhomes are essentially homes on individual lots and owners have more responsibility for the cost of repairs for everything inside their unit from the walls in, as described in the CC&Rs.

Second, the Association obtains comprehensive property insurance, as described in the Annual Disclosure, but that insurance currently includes a $50,000 deductible. As a result, Townhome Property Owners can be responsible for the cost of repairs of up to $50,000.

To cover yourself for any losses up to $50,000, we recommend you contact your insurance agent to make sure the " Loss Assessment" part of your HO6 policy has at least $50,000 of coverage.

How do Claims within the Townhomes Work?

In the event of a loss within a Townhome, the CC&Rs define who, the Association or individual Townhome Owner, is responsible for the loss. There are instances where an individual owner would be responsible for the loss and would either file a claim with their individual insurance policy or would be responsible to pay for the Association's policy deductible.

To protect each Townhome owner, it is important that they are aware of this potential liability and that they obtain an individual H06 policy that would provide coverage to cover the cost of damages and/or insurance deductible that would fall under their responsibility per the CC&Rs.

For example - per TKPOA’s CC&Rs, an interior water leak is the responsibility of the individual Townhome unit owner. The Association's insurance policy does have coverage for this loss and would cover the cost of damages less the deductible, however, if the Association's policy was utilized in this event to file a claim, the responsible owner would be required to pay the cost of the deductible, which is currently $50,000.

In most situations where the individual owner is responsible for the loss, it is more beneficial for them to utilize their individual policy as their deductible will most likely be lower than the Association's policy. However, if the Association's policy is utilized, and the owner must pay the $50,000 deductible, they could also file a claim with their H06 policy to cover the cost of that deductible for them (if they have this coverage).

In the event that a loss is the responsibility of the Association per the CC&Rs, then the deductible or cost of damages below the deductible, would then be paid by the Association through the Townhome Subdivisions Operating or Reserve funds. First and foremost - the CC&Rs define responsibility and who pays for the damages, either through an insurance claim or out of pocket.

If you have any questions, please contact Operations Manager Heather Blumenthal at hblumenthal@ tahoekeyspoa.org or (530) 542-6444 ext. 228.