History of Insurance at Park East Square
Written March 19, 2007 by Dave Longenecker and Randy
Doriese.
Amended October 30, 2015 by Dave Longenecker.
Amended November 19, 2017 by Dave Longenecker.
Disclaimer: some of the early history (pre 1990) is collected hearsay.
Longtime residents: if you have pertinent information, please contact
a board member.
Mid 1970's: PESHA is formed. Board does not insure
individual
units.
1982: PESHA board attempts to amend the Covenants to
allow group
insurance. As far as we can tell, the third and fourth amendments to
the PESHA
Covenants failed to receive 90% of owners' signatures.
1989: Fire burns the 4279 building; all four units
are rendered uninhabitable. Three of the four owners happen to have the
same insurance
company; the fourth has no insurance. The company involved decides to
rebuild the entire building.
1990: PESHA buys "all-in" group insurance from
Farmers.
1994: Fire burns the 4227 building. Damage is
concentrated in
the A unit, with smoke damage in the other units. Farmers fixes all the
units
very quickly.
1999: Farmers insurance company drops the PESHA
coverage. Taggart/Travelers are selected to provide a new all-in
policy.
January, 2006: Fire burns the 4145 building. Damage
is
concentrated in the A unit, with minor damage to the other units.
Travelers
disputes PESHA's claim on multiple counts. Travelers claims that they
did not
sell PESHA an all-in policy, and further that no one in the industry
sells
all-in policies anymore. Travelers also disputes PESHA's legal ability
to
insure the buildings all-in. Ultimately, PESHA and Travelers settle the
claim
(October, 2006); the details of the settlement are to remain
confidential.
Late 2006: After the Travelers settlement, the Board
begins to shop for new policies.
January, 2007: State Farm underwriter informs PESHA
board that
his opinion is that, according to its Covenants, PESHA may not insure
the
individual Lots, neither all-in or just the outsides of the buildings.
February, 2007: PESHA sends out letter to all owners
informing
them that they would be safest to buy their own insurance while the
Board
figures out what it is allowed to insure.
March, 2007: PESHA receives an opinion from its
attorneys that
while it is not required to insure any individual Lots, it may choose
to do
so. American Family urges the Board to put together a wish-list of what
should be included in a group insurance policy. The Board is still
deciding
what type of group insurance to buy, if any. Owners should still
assume,
until informed otherwise, that PESHA carries no insurance on their
Lots.
November, 2007: PESHA discontinues Travelers policy
and takes
out a policy with American Family. A letter is sent to all owners with
an overview of the new policy.
December, 2012: The Board votes to raise the
deductible to
$10,000. With this change, the annual premium will be ten thousand
dollars
lower. See the insurance sections of the December,2012 and the 2013
annual minutes.
October, 2017: PESHA's insurance agent is now Ella
Washington.
The following letters are made available for historical context ONLY and are no longer current.
Insurance Letter 2017
Insurance Letter 2019
