CAI-NJ Feb.2018

SHORT-TERM... from page 20.

Limitation Endorsement.” An insurance policy is a contract that is agreed upon by the insurance carrier and the insured. The insured submits an application to the insurance company stating that they are an HOA, condo, or co-op and as such, the insurance carrier classifies them accordingly. If all of a sudden, a community associ-

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"If a community association does

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not have the correct classification listed on its policy, then coverage could be denied by the insurance carrier."

ation starts allowing short-term rentals, this may change the classification, which ultimately changes the agree- ment, and could be considered a material misrepresentation of the risk, if the carrier is not notified properly. If a community association does not have the correct classification listed on its policy, then coverage could be denied by the insurance carrier. For example, Airbnb may be considered a hospitality classification because a rental could be day to day, week

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