Insurance Responsibility and Utah Law

Dear New Claim Homeowner,

Changes have been made to Utah Condominium Law since many of our owners purchased at New Claim. The purpose of this letter is to notify you that during the 2011 Utah legislative session, a new law was passed that impacts how your unit owners insurance policy (HO-6) works with your HOA Master association insurance policy. That law, SB 167, mandates that your HOA association policy become the primary coverage for your unit including interior wall, electrical, plumbing, cabinetry, built-in appliances, floor coverings and any other improvements and betterments that have been added to your unit. Keys summary items are as follows:

• The HOA association’s policy is responsible for 100% replacement value of your unit and should provide coverage for losses over the HOA association’s policy’s deductible amount of $10,000.

• In the event of a loss to your interior unit, you will need to pay for the loss up to and/or including the deductible amount on the master HOA association’s policy. The New Claim deductible amount is $10,000. You are required to pay this and it may be claimed under your personal HO-6 policy. The Unit Owner is responsible for the $10,000 deductible amount regardless of cause including but not limited to flooding of common pipes or from un upstairs neighbor unit who had a leaking shower/bath/toilet/hot water hear/washing machine. The only exception is if there was an intentional act to cause damage to your unit for which you may review this exception with your insurance agent. You will want to insure your HO6 building property and loss assessment for at least the $10,000 HOA deductible. We recommend that you contact your insurance carrier to review your own condo policy.

• The law does not impact your personal property coverage or your personal liability coverage and you should continue insuring that on your personal HO-6 policy.

Also, attached for your reference is a detailed explanation of our New Claim Insurance and New Claim’s Certificate of Insurance. Please review this information so that you are fully informed about the HOA responsibilities and your own responsibilities for damage to your unit. Again, this is in compliance with Utah’s law change of 2011.

If you would like to look up the law, you can find a PDF copy of it at the following website. The insurance portion starts on page 18. http://le.utah.gov/~2011/bills/sbillenr/sb0167.pdf

Sincerely,

The New Claim HOA Board of Directors