Archive: April 2020

Increasing issues associated with COVID-19, the coronavirus, have caused a number of issues in Florida to the point where Governor DeSantis had to declare a State of Emergency. At this point, there is not only an increased risk to the elderly and those with compromised immune systems, but to everyone, as we know so little about the transmission of the virus and how it operates.

As a result, we are receiving a number of questions from parties with concerns surrounding the coronavirus; one of them being homeowners’ associations and boards that are concerned about how the virus might affect their residential communities and what can be done to protect them, as well as any management issues that could arise as a result.

Consult an HOA Attorney & Maintain Balance by Taking Precautions but Not Overreacting

It is important that associations do not take drastic measures such as prohibiting anyone who has traveled to certain areas from returning to their homes or pursuing emergency statutory powers without first consulting a homeowners’ association attorney. Instead, it would be better to try and strike a balance between ensuring that associations are not negligent in ignoring the threats that the virus poses – especially when it comes to certain communities with open layouts, whereby residents are constantly coming into contact with each other in common areas – and overly restrictive protocols that unnecessarily restrict residents’ freedom, which could lead to legal challenges.

There is no question that the coronavirus quarantine is placing a strain on a number of relationships, and has made some realize that divorce is their only option for moving forward with their life. One of the main stressors involves people losing their jobs and/or a percentage of their net worth as a result of the quarantines and market upheaval. Some separated parents who are not yet divorced are also finding themselves in compromised situations due to the virus, whereby they now have new concerns about the other parent spending time with their children, which is also speeding up a desire to move forward with divorce. Some in the throes of divorce are even now find themselves living in the same house together due to the timing of the quarantine, and a percentage may be stuck in an abusive situation, not necessarily able to run to a friend or family’s home for shelter due to social distancing concerns. Those at risk of physical abuse are especially vulnerable now right now and may not be able to seek out medical help by going to the hospital due to virus concerns.

The issue of the coronavirus potentially causing business losses and a number of U.S. companies thinking that their insurance policies cover this loss of revenue due to the outbreak will likely be a significant source of insurance bad faith litigation as we face more and more losses due to the virus. According to the Organisation for Economic Cooperation and Development, if the virus continues along its current path, it could cut the year’s global growth by half to 1.5 percent for the year, causing a $1.5 trillion loss due to the disease.

Business Interruption & Contingent Business Interruption Insurance Policies

Many are estimating that these losses will be greater than disasters such as Hurricane Katrina, but less likely to be insured. This is because while most-all companies have business interruption insurance as part of their insurance policies in order to cover operations losses when business has to halt unexpectedly, these policies are almost always linked to “direct physical loss or damage” as the definition of what constitutes loss that validates payment, and quarantines do not cause physical damage in the same way that a fire or earthquake does.