HOAleader.com - Tip of the Week - October 21, 2016
Published: Fri, 10/21/16
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HOA Rushed Into Insurance Renewal (Maybe); Is There a Do-Over?
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In this week’s tip, we answer a reader’s question about whether a board was
bamboozled into a decision and whether it can ask for a do-over.
The issue arises in response to a Florida reader’s question about whether a
manager acted properly to renew an HOA insurance policy after emailing
board members and getting a mixed response. Our experts generally agree
that it looks like this manager got into a time crunch.
In this case, however, our experts generally agree that it looks like this
manager got into a time crunch.
“It looks like there was urgency created by lack of proactivity,” says
Matthew A. Drewes, a partner at Thomsen & Nybeck PA in Bloomington, Minn.,
who heads the law firm’s community association representation group. “To
cover someone, the board was pressed into possibly a hasty decision. That’s
the impression I have because it sounds like a couple of board members had
questions they wanted answered before committing to changing carriers.”
That’s also the sense Alessandra Stivelman, a partner who specializes in
community association law at Eisinger Brown Lewis Frankel & Chaiet in
Hollywood, Fla., got from the reader’s question. “My sense was that the
manager needed to do something, and the manager made an educated decision to
go with the carrier with the lower premium,” she speculates.
Joe Winkler isn’t so sure. “This is a tricky one because there’s not a ton of
information here of the nuances of what happened,” says the vice president
of marketing at Keystone Pacific Property Management in Irvine, Calif.,
which manages associations ranging from two to 4,000 units—about 65,000
units in total in Southern California. “But I read this as the manager gave
directors the business options of staying with the current carrier or
moving. What it seems like the HOA manager didn’t do was give them the
procedural options to make the decision.
“It seems to me this was a communication and procedural issue,” adds
Winkler. “The manager needed to say, ‘We need to finish this by this day. We
can do it by phone by having this quorum. If we don’t act by then, the
association will be without insurance.’ The manager should spell out the
process and what happens if we don’t get this done.”
Did this manager and board follow Florida law? Maybe. Maybe not. It really
depends. Read why—and get details on whether this manager’s actions would
be considered valid under several other states’ laws, in addition to
whether this board can undo this insurance renewal—in our new article:
http://www.hoaleader.com/members/2446.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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HOA Rushed Into Insurance Renewal (Maybe); Is There a Do-Over?
In this week's tip, we answer a reader's question about whether a board was
bamboozled into a decision and whether it can ask for a do-over. The issue
arises in response to a Florida reader's question about whether a manager
acted properly to renew an HOA insurance policy after emailing board
members and getting a mixed response. Our experts generally agree that it
looks like this manager got into a time crunch.
Click here to read full article:
http://www.hoaleader.com/public/HOA-Rushed-Into-Insurance-Renewal-Maybe-There-DoOver.cfm
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Should This HOA Board Just Ratify This Manager's Action?
An HOAleader.com reader writes, "I live in Florida. Our HOA
management person e-mailed all board of directors [at] the end of April 2016
concerning renewal of our condo insurance. He gave the directors the option
of staying with the current company or a new company he found. The new company
has a better deductible and the premium is much less, and stated it is the
directors' choice of companies to pick.
Click here to read full article:
http://www.hoaleader.com/members/Should-This-HOA-Board-Just-Ratify-This-Managers-Action.cfm
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What You Need to Know About Hosting HOA Movie Nights
Sounds fun to host a movie or TV night in your HOA's greenbelt or
clubhouse--what a great way to build community, right? A reader advises,
however, that you could get into trouble if you don't have the proper rights
to publicly show a copyrighted movie or TV show. Here's a basic overview.
Click here to read full article:
http://www.hoaleader.com/members/What-You-Need-Know-About-Hosting-HOA-Movie-Nights.cfm
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About That HOA Owner Who's Always Calling the Coppers
In this week's tip, we raise a blast from the past: Gladys Kravitz! Actually,
we're discussing police activity at HOAs. The topic comes up as a result of a
question from a reader, who seems to live in an HOA that has restricted owners
from calling the police.
Click here to read full article:
http://www.hoaleader.com/public/About-That-HOA-Owner-Whos-Always-Calling-Coppers.cfm
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HOA Owners Are Calling the Police! Is That a Problem?
An HOAleader.com reader writes, "Do property owners in private
communities with HOAs have any restrictions on what they can report to the
local police for investigation? If so, how are these restrictions
set--e.g., by law (which law?), by the HOA's governing documents, or by
private agreements between the police and certain individuals involved in
the HOA?
Click here to read full article:
http://www.hoaleader.com/members/HOA-Owners-Are-Calling-Police-That-Problem.cfm
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