LAKE VILLAGE HOMEOWNERS ASSOCIATION, INC.

PO Box 542, Zephyr Cove, NV 89448    Phone: 775-588-4840     Fax: 775-588-7590  

Email: lvhoa@lakevillage.com www.lakevillage.com

March 26, 2010

Message to all Lake Village Homeowners - Finally, Good Insurance News ! !

On behalf of the Lake Village Homeowners Board of Directors, and your Insurance Committee, I wish to thank all of our homeowners who cooperated in reroofing their wood shingle roofs, repairing and/or replacing their aluminum wiring and old heat tapes, and tolerating our extensive tree removal projects. We are aware that these projects caused both inconvenience and expense to many of our individual homeowners. However, at our March 20 Board of Directors Meeting, Lake Village recognized the benefit of having these projects completed.

We are realizing our payback!

How so, you might ask? For the last two years following our Unit 17 – 20 fire loss, we experienced great difficulty in finding insurance carriers who would bid on our insurance. What insurance we did finally obtain was very costly. This year was different! At our recent Board Meeting we had the opportunity to consider six insurance proposals, presented by four different Insurance Brokers. The proposal selected by the Board substantially increased our coverages, lowered our deductibles (except for Water Damage which remains at $25,000), and, most importantly, reduced our insurance costs by over 50% per year for our new policy year (starting March 31). Stockdale Insurance Agency, the Broker submitting CIBA’s proposal for this new coverage, stated these results were obtained ONLY because Lake Village had completed the extensive projects noted above, and that had Lake Village Homeowners not accomplished them, CIBA would not have even submitted a bid on our coverage! It should be noted that Lily Grove, a Stockdale Agency Account Manager and Lake Village homeowner, was a strong advocate on our behalf with CIBA. We have every right to be proud of the way our homeowners have responded, and we will now share the benefits of the cooperation extended by the affected homeowners.

The Insurance Separate Assessment Area charges identified in your recently received Annual Invoice will remain unchanged for at least April and May. At the May Board of Directors meeting the Board will consider at what level Insurance charges will be set for the remainder of the year. It is safe to say, however, that your insurance charges for the year will be substantially reduced. The average homeowner in Lake Village will see a reduction in their insurance assessments of between $300 and $400 for the fiscal year.

We have fortunately obtained a much better quote than we expected to receive any time in the next several years. Many of the quotes we received were substantially higher, based primarily on our location and prior claims experience. If our claims experience in the coming year should be bad, we can expect that our policy cost will again rise substantially. We must all work to avoid unnecessary claims. Our most frequent type of claim is water damage, and the majority of these claims are avoidable. By maintaining our units heat at 55 degrees or higher, and by turning water off when the unit is vacant in winter periods, most of the “frozen or broken pipe” claims can be avoided. A small investment in the cost of additional heating can avoid a large deductible cost if an insurance claim occurs, and that individual claim can eventually result in a cost to all homeowners by way of a  higher insurance premium cost. We need your help to avoid these types of claims.

Thank you for your help in obtaining this most favorable result. We look forward to your future assistance in helping Lake Village maintain its preferred status!

Owen Carter

Secretary, Board of Directors

Insurance Committee Chair