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In Reply to: Homeowners Association as "Additional Ins" or "Loss Payee" posted by Phil Brougham on October 14, 2001 at 08:50:28:
: Our HOA Covenants require each owner to list the Association as "additional
insured" on flood and hazard policies. One insurance agent has said that
in doing so, the Association is only benefiting on the liability portion of
the owner's policy and not the property damage portion. The agent also said
to benefit on the property damage portion, the Assoc. would have to be named
as "loss payee". The attorney for the Association has stated there is "no
substantive difference between the two terms. What are the facts
There are considerable differences of responsibility and rights between those of an insured and those of a loss payee. You would do best to get a second legal opinion from an attorney schooled in insurance matters. Also, the term "propety damage" usually refers to damage to property of others, i.e., liability insurance, not the "insured property" section of the policy. Make sure there is no misunderstanding of terminology.
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