Insurance

The “Insurance” category contains articles of information that pertains to a homeowner association’s insurance coverage, policies and issues.

Does Your Homeowners’ Association Carry Adequate Directors and Officers Liability Insurance?

/ Insurance
Does Your Homeowners' Association Carry Adequate Directors and Officers Liability Insurance? Directors and officers liability insurance (“D&O Insurance”) is insurance that protects the officers and directors of a homeowners’ association and provides coverage for liability and legal expenses that result from acts committed as a director and/or officer of the ...
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Don’t Put Your HOA at Risk by Not Tendering Claims to Insurance Carriers

/ Insurance
Don't Put Your HOA at Risk by Not Tendering Claims to Insurance Carriers Homeowner association management personnel are frequently confronted with situations that involve actual or potential claims being made by a third-party such as a homeowner or an injured worker. The association typically first learns of such claims through ...
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HOA Directors Should Not Buy Insurance Coverage Without First Reviewing a “Specimen Policy”

/ Insurance
HOA Directors Should Not Buy Insurance Coverage Without First Reviewing a “Specimen Policy" State laws and/or governing documents for homeowners associations impose requirements for the association to carry various forms of insurance such as:This content is for Subscribers. To continue reading, you must have a Subscription with HOA Member Services ...
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HOA Directors’ Duties Relating to Association Insurance Coverage

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HOA Directors' Duties Relating to Association Insurance Coverage Homeowners association directors have specific duties that are related to the insurance coverage that is purchased for the association. Those duties include: (i) purchasing and maintaining proper insurance coverage; (ii) keeping association members informed about the association’s insurance coverage; (iii) consulting appropriate ...
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HOA Directors’ Duties to be Aware of Regarding Their Association’s Insurance Coverage

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HOA Directors’ Duties to be Aware of Regarding Their Association’s Insurance Coverage Homeowners association directors need to be aware of their duties relative to the association’s insurance coverage, which include: (i) insuring against various risks that the association is exposed to; (ii) utilizing proper insurance agents and brokers; (iii) tendering ...
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HOA Homeowners Need to Have Adequate “Loss Assessment Insurance”

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HOA Homeowners Need to Have Adequate "Loss Assessment Insurance" All too often owners of condominiums and properties that are part of a common interest development that is operated by a homeowners association learn about loss assessment insurance the hard way– that is, when the need arises after a loss and ...
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HOA Insurer Must Pay Association’s Liability for Attorney Fees as the Losing Party

HOA Insurer Must Pay Association's Liability for Attorney Fees as the Losing Party In this case, a homeowners association (HOA) sued two homeowners for alleged violations of the HOA’s bylaws. The lawsuits were initiated under Florida statutes that contain provisions which provide for an award of attorney fees to the ...
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HOA’s Insurance Claim for Hurricane Damage Is Denied Due to Late Notification to Carrier

HOA's Insurance Claim for Hurricane Damage Is Denied Due to Late Notification to Carrier An HOA in Florida with 380 residential units sustained property damage from a hurricane that struck the Florida coast on October 24, 2005.  At the time of the hurricane the HOA carried $5,00,000 in insurance. Shortly after ...
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HOAs Need Workers Compensation Insurance to Protect Against Potential Liability to Injured Workers

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HOAs Need Workers Compensation Insurance to Protect Against Potential Liability to Injured Workers It is not uncommon for associations to hire unlicensed and uninsured contractors to perform contracting activities, including but not limited to landscaping and gardening. If a contractor is uninsured when the services are performed, the association becomes ...
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HOAs Should Never Utilize Unlicensed and/or Uninsured Service Providers

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HOAs Should Never Utilize Unlicensed and/or Uninsured Service Providers A common mistake made by HOA directors and/or management personnel is the belief that the association does not need to carry workers compensation insurance if they do not have employees. Under state laws, a homeowners association is subject to being held ...
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Insurer Not Obligated to Defend HOA in Action Seeking Only Injunctive Relief

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Insurer Not Obligated to Defend HOA in Action Seeking Only Injunctive Relief A California Fourth Appellate District Appellate Court has ruled that an HOA’s liability insurance carrier did not have a duty to defend the HOA against a claim for injunctive relief when the plaintiffs were not also seeking compensatory ...
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Iowa Ct Says Insurer Must Comply with Requested Appraisal Before Litigating Coverage Issues

Iowa Ct Says Insurer Must Comply with Requested Appraisal Before Litigating Coverage Issues Appeal by insurance carrier for HOA of the granting of a motion by the association to compel appraisal under the terms of the insurance policy. The carrier contended that there was an issue of “causation” that would ...
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Is Your HOA Properly Covered for Losses From Dishonest Acts?

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Is Your HOA Properly Covered for Losses From Dishonest Acts? Because homeowners associations are controlled and operated by part-time volunteer members who serve as officers and directors and unrelated third-party mangers that are hired to provide management services, they are especially vulnerable to losses that result from the dishonest acts ...
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Is Your Homeowners Association Protected by Fidelity Insurance?

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Is Your Homeowners Association Protected by Fidelity Insurance? Homeowners associations are extremely vulnerable to financial losses due to the dishonesty and theft or embezzlement by the association’s officers, directors, employees and management personnel. To protect against the exposure to such losses, homeowners associations should carry “Fidelity Insurance” or “Employee Dishonesty ...
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