The Association Board of Directors (ABOD) appreciates the need in having your questions answered. The Ask the ABOD column provides a forum where all those interested can see the question and response. If you have any questions, please email them to Liz Ramos at LRamos@the-villages.com or drop them in the drop-box in the parking lot of Building A.
The entire Board is interested in communicating the proper information for your understanding of issues and current events.
Question from Ed Logg:
I recently learned that Fairways, Del Lago and Sonata have a separate insurance policy from the other villages. At one time this idea was suggested but we were told it was not feasible. I am glad to hear that it is indeed possible although it came as a complete surprise.
I would like to know how much less this new policy is for these villages compared to the other villages in both the dollar amount and the percentage of the cost. Also, most importantly, what is it about these villages that allows us to get reduced rates?
Answer from the ABOD
Thank you for your question about the insurance coverage for Fairways, Del Lago, and Sonata. Here’s a concise explanation of the situation: Yes, Fairways, Del Lago, and Sonata do have a separate insurance policy from the other villages. This arrangement was made possible after careful consideration of various factors, and it aligns with the unique characteristics of these districts.
Cost Comparison:
- Premium Rate Comparison: The new policy for these districts offers more favorable rates due to lower risks associated with the properties. On average, the new policy is significantly less expensive per square foot compared to other districts, with rates approximately 55% lower. Specifically, RT Specialty Brokers (the non-admitted multi-layer property insurance placement) charges $0.51 per $100 of property value, while the Philadelphia (the admitted property insurance placement) Insurance policy for these districts is at $0.23 per $100 of property value. This difference is a result of better loss experience and stricter underwriting requirements by Philadelphia Insurance.
Reason for Reduced Rates:
- Risk Factors: The lower insurance rates for these districts are primarily due to two main factors:
- Brush Score: These districts have lower brush fire risk scores, which makes them less susceptible to wildfire-related claims.
- Property Value Limits: The insurance carrier, Philadelphia Insurance, was able to offer these lower rates because their reinsurers limit the maximum property value they are willing to cover, and the property values for these districts fall within those limits.
This tailored insurance approach allows these districts to benefit from reduced premiums while ensuring comprehensive coverage that meets their specific needs.
If you have any further questions, please feel free to reach out.
