HOAleader.com - Tip of the Week - January 5, 2018
Published: Fri, 01/05/18
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New Year, New Insurance Issues: How to Give Your HOA a Checkup
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With any luck, this year will be nowhere near as bad as last year when it comes to natural disasters. Still, it’s your job to be prepared for the worst. In this week’s tip, we start 2018 off with what you need to know to do a quick review of your HOA’s insurance coverage to ensure you’ve got the policies you need at the coverage levels you also need.
1. Schedule a meet-up with your agent.
“I recommend meeting with the association’s insurance agent annually to review the policies and the applicable insurance requirements in the governing documents,” explains Susan Hawks McClintic, co-managing shareholder and the chair of the community association transactional practice group at the law firm of Epsten Grinnell & Howell in San Diego.
“In California, the board is required to provide the owners a summary of the association’s policies annually,” she adds. “This is an opportunity to make it clear to the owners what’s covered by the master insurance policies and what insurance the owners should obtain.”
Stephen M. Guerra, managing partner of Makower Abbate Guerra Wegner Vollmer in Farmington Hills, Mich., who practices primarily in condominium and subdivision association law, also advises that you build a relationship with a trusted insurance expert who understands community associations. “Boards have to be able to rely on their insurance agent,” he says. “Most of these boards are volunteers, and they’re not really reviewing their policies, so they need that agent’s expertise.”
2. Check whether your state has minimum requirements.
“In California, Civil Code 5805 requires associations to obtain a minimum liability insurance policy to protect the owners in a condo project from liability for injuries in the common area,” states McClintic. “Civil Code 5800 also requires minimum D&O insurance to protect volunteer officers and directors.”
We’re just getting started. Check out more money-saving tips in our new article:
https://www.hoaleader.com/members/3659.cfm
Best regards,
Matt Humphrey
President
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