From: Michael Mullaney
Subject: FLOOD INSURANCE
Date: Tuesday, July 28, 2009, 4:00 PM
The AOAO has been receiving numerous calls from owners whose lenders are requiring 100% insurance coverage.
Attached is a letter in which our insurance agent explains this issue a little further. Mike Ayson will gladly help you with any questions or concerns so please contact him if you would like more information.
Waikiki Shore AOAO Inc.
AOAO Account Manager
1132 Bishop Sireet, 16 Fir
Honolulu, HI 96813
Phone: (808) 533-8607
Fax: (808) 550-1041 email@example.com
July 22, 2009
AOAO Waikiki Shore, Inc.
2161 Kalia Road
Honolulu, HI 96815
Re: American Saving Bank Flood Insurance Requirement
Dear Unit Owner,
I have been informed that American Savings Bank recently sent you a letter requiring additional flood insurance coverage. ASB is not satisfied with the association’s $29,321,600 flood policy limit. They prefer that it match the association’s $34,653,000 property policy limit. Most lenders only require the association’s flood insurance limit to be within 80% of the association’s property policy limit. It appears unlikely that the association will increase its flood limit since only a few unit owners are affected. It would cost the association approximately $14,000 more per year to increase its flood limit to $34,653,000.
The easiest and least expensive way for you to satisfy ASB’s requirement is to purchase a personal flood policy through a company that has access the National Flood Insurance Program rates (NFIP). ASB can add the cost of the policy to your escrow account The annual cost using the NFIP rates is $291. I would be glad to assist you if you in procuring a policy are interested. Please note that if you do not respond to ASB’s letter they will force place a policy on your behalf. Force placed policy premiums are exorbitant. They are approximately 3 times the normal rate.
Feel free to contact me if you have questions or concerns.