Mark Robertson

Theodore Tunick & Company

1336 Beltjen Road,  Suite 300

St. Thomas, USVI  00802

  

Dear Mark,

I want to thank you for giving me the opportunity of discussing the insurance coverage for Point Pleasant Association on October 20th.  Again, many thanks for your interest and concern in maintaining the best available Insurance at a most reasonable cost for us in the past.  I do have some questions that I would appreciate your reviewing and they are as follows:

Fire Insurance on our masonry buildings seem to be a bit excessive due to the distance between the buildings, masonry construction and the maximum amount of a potential loss at any one time.

You have on your schedule listed building #27 twice.  You have shown on 1 schedule a $5,000 deductible and on the 2nd a $10,000 deductible on this coverage.  Have we been double charged for this coverage and why is there a difference in the deductibles shown?  Since there is a possibility of a loss up to $10,000 on a single unit with a $10,000 deductible, it would imply that we have no collective coverage.  We feel that a $500.00 deductible would be more inline under the circumstances.  Some associations and companies have acknowledged that maintenance fees are considered income and are covered by the business income insurance.  Would you please advise me on the company s position in this regards.

With regards to windstorm you had stated the we could possibly obtain an additional $2,000,000 coverage for an additional $112,000 per year.  We realize that the coverage is needed however; the expense is too great for us to assume.  My hope is that through a reasonable adjustment in the fire rate and the deduction for the duplicate contents and business income insurance, it would help negate this additional cost.  My hope is that the company realizes that due to masonry construction, the distances between the 24 buildings and the maximum possible loss at any 1 given location that these could be taken into consideration for a reduction.  Also the fast that we have metal roofs with tie downs and hurricane shutters.

You also stated to reduce the deductible on earthquake insurance to $150,000 from $360,000 it would be approximately $30,000 a year.  Is there any wiggle room on this deductible since our property has gone loss-free for many years.

Am I correct in assuming that the windstorm coverage is written flat and not subject to co-insurance?  The question was raised and thought I don t see restrictions in the form should we have more than 1 windstorm a year could the $1,000,000 be subject to an annual total claim?

With regards to the evaluation of the property at the last Board Meeting upon your recommendation, we agreed to obtain an appraisal on the reconstruction of 1 building in an attempt to determine whether or not we are carrying sufficient coverage.

As you know we have a contract with Antilles to handle the rentals of approximately 90 units, which generates income for both owners and Antilles.  Richard Locke of Antilles is unable to obtain business interruption coverage.  I know that this is a stretch, but I would appreciate your inquiring on whether or not we could obtain this type of coverage.

I realize that our policy does not come up for renewal until April 1, 2007; however, we would like to look into these items at this time since our next Board Meeting is on January 27th, and we will not have another meeting until June 2nd.

You also mentioned that the companies would no longer consider writing coverage on an agreed basis since Hurricane Katrina.  We would appreciate your exploring this possibility.

Again, thank you for the time that you gave me in reviewing our insurance coverage and your continued interest in helping us obtain the most economical coverage for our organization.

 

Kindest personal regards,

Lewis L. Wilson

President

Point Pleasant Owners Association

 

 

CC; Members of the Point Pleasant Association Board