All Home Owners should have recently received a letter from Atlas Insurance which describes recent changes in your personal insurance coverage requirements. Please review and respond to the new requirements for your personal H06 homeowners insurance. Below is some background regarding the communication from Atlas Insurance.
As you know, Insurance costs have been increasing dramatically in the past few years. The Kihei Kai Nani’s long time agent J.C. Connors was going to increase our property insurance policy cost by $50,000, while also increasing our deductible from $15,000 to $25,000 per incident for 2023 – 2024 calendar year. In order to mitigate this increase, your Board of Directors shopped around and found an insurance agent who will provide comparable insurance for $20,000 less. Although it is still a $30,000 increase from last year, it will avoid some costs in the HOA budget and dues for next year. The new Insurance agent is Atlas Insurance.
Unfortunately, this means that the proof of insurance documentation you provided earlier this year to J.C. Connors now needs to be re-sent to Atlas Insurance. You can email them at HO6tracking@atlasinsurance.com or mail it to:
Atlas Insurance Agency Attn: HO6 Tracking –Kihei Kai Nani AOAO 201 Merchant St. Suite 1100 Honolulu, HI 96813
Additionally, owners need to make sure that their policies will cover the higher AOAO deductible of $25,000 and has to be done by July 31, 2023
Per Hawaii Revised Statutes 514B, associations may require unit owners to provide insurance coverage for their personal exposures and it allows an AOAO to assess its deductible against the owner of the condo where the damage originated. Your AOAO is implementing this policy, therefore, since the AOAO insurance deductible is now $25,000 per incident, repair costs up to this amount may be charged to you. Owners will be asked to submit the AOAO deductible cost to their HO6 policy. Additionally, relocation costs or loss of rent costs which may be incurred as a result of a failure of an AOAO common element are also covered by owners’ HO6 policies not the AOAO. The AOAO is therefore requiring the HO6 coverage sufficient to cover its deductible of $25,000 per incident and any relocation or loss of rent costs incurred (if any) to protect owners in case of incidents in or around your condos.