NOTICE TO PP II UNIT OWNERS
Pelican Pointe of Sebastian II Condominium Association, Inc.
The Florida legislature has passed various changes to the Condominium Act, one of which is the requirement of the Board to inform the Unit Owners concerning Casualty Insurance, the Deductible and other sources for paying the Deductible in the event of a major casualty to the Association’s common property. At the upcoming Board Meeting on Thursday, November 20, 2008 we will be formally presenting this information as follows:
Insurance Deductible Preamble:
The proposed insurance deductible for the Association’s Hazard Policy with Citizens Insurance (State of Florida Organization) in the event of casualty from a major windstorm (hurricane, tornado or the like) is proposed to be 3% of the property’s valuation (coverage for full replacement under our policy with Citizens). The Property valuation, based on a recent Professional appraisal in September of 2008, is $15,644,299. The 3% Deductible for 2009 therefore totals $469,326.87. Available funds to meet the association’s deductible may come in part from Reserve funds and/or from our Contingency operating fund, but will come primarily from a Special Assessment. The Board will determine the amounts it considers available from the Reserve and Operating fund sources at the time of the major casualty and may choose to use this towards the satisfaction of our deductible.
In the event of a major casualty in 2009, the principal funds to meet the required deductible under our policy will be collected through a Special Assessment of the required shortfall to each Unit Owner on the basis of 1/180th per Unit Owner of the total remaining funds then required. The Board has the authority under 718.1265 – Association Emergency Powers, to levy a special assessment without a vote of the owners if a State of Emergency has been declared in the locale in which the condominium is located.
Our deductible is the lowest available and is consistent with or better than industry standards and prevailing practices for communities similar to ours in construction and location. Under the newly established change to Fl Statute 718.111(11) (c) we are required to inform you of the information stated in this notice. If the Association must have a Special Assessment to fully cover the deductible for a major casualty, each Unit’s Assessment would be $ 2,607.37.
Our budget for 2009 has $108,836 in Reserves at January 1 that could be considered for major casualty deduction uses. We have $ 3,500 in Contingency funds in our Operating funds. These figures are of course, the beginning figures for the year and will not be the amounts available if we experience a major casualty later in the year of 2009 since these reserve funds will be added to with quarterly assessments received and contrarily will be expended on major repairs and improvements to the Condominium Property during the year.
At the upcoming Board Meeting we will propose to the Board that the Association proceed to enter an Insurance Contract with
The Florida legislature has passed various changes to the Condominium Act, one of which is the requirement of the Board to inform the Unit Owners concerning Casualty Insurance, the Deductible and other sources for paying the Deductible in the event of a major casualty to the Association’s common property. At the upcoming Board Meeting on Thursday, November 20, 2008 we will be formally presenting this information as follows:
Insurance Deductible Preamble:
The proposed insurance deductible for the Association’s Hazard Policy with Citizens Insurance (State of Florida Organization) in the event of casualty from a major windstorm (hurricane, tornado or the like) is proposed to be 3% of the property’s valuation (coverage for full replacement under our policy with Citizens). The Property valuation, based on a recent Professional appraisal in September of 2008, is $15,644,299. The 3% Deductible for 2009 therefore totals $469,326.87. Available funds to meet the association’s deductible may come in part from Reserve funds and/or from our Contingency operating fund, but will come primarily from a Special Assessment. The Board will determine the amounts it considers available from the Reserve and Operating fund sources at the time of the major casualty and may choose to use this towards the satisfaction of our deductible.
In the event of a major casualty in 2009, the principal funds to meet the required deductible under our policy will be collected through a Special Assessment of the required shortfall to each Unit Owner on the basis of 1/180th per Unit Owner of the total remaining funds then required. The Board has the authority under 718.1265 – Association Emergency Powers, to levy a special assessment without a vote of the owners if a State of Emergency has been declared in the locale in which the condominium is located.
Our deductible is the lowest available and is consistent with or better than industry standards and prevailing practices for communities similar to ours in construction and location. Under the newly established change to Fl Statute 718.111(11) (c) we are required to inform you of the information stated in this notice. If the Association must have a Special Assessment to fully cover the deductible for a major casualty, each Unit’s Assessment would be $ 2,607.37.
Our budget for 2009 has $108,836 in Reserves at January 1 that could be considered for major casualty deduction uses. We have $ 3,500 in Contingency funds in our Operating funds. These figures are of course, the beginning figures for the year and will not be the amounts available if we experience a major casualty later in the year of 2009 since these reserve funds will be added to with quarterly assessments received and contrarily will be expended on major repairs and improvements to the Condominium Property during the year.
At the upcoming Board Meeting we will propose to the Board that the Association proceed to enter an Insurance Contract with
Florida's State owned Citizen's Insurance Co. for 100% Replacement cost of our Condominium Property based on the valuation of $15,644,299 established by professional Appraisers, Allied Appraisal Services, in September of this year. Such insurance contract is to have a maximum deductible for "wind" (hurricane, tornado, and the like) of 3% and a maximum deductible for "all other perils" of $5000.
PLEASE NOTE WE ARE NOT PROPOSING A SPECIAL ASSESSMENT AT THIS TIME....WE ARE MERELY ADVISING YOU OF THE INSURANCE COVERAGE AND DEDUCTIBLES FOR THE YEAR 2009 SHOULD WE FACE A MAJOR CASUALTY.
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