The “Insurance” category contains articles of information that pertains to a homeowner association’s insurance coverage, policies and issues.
HOAs Should Never Utilize Unlicensed and/or Uninsured Service Providers
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 ...
Homeowners Right to Report Insurance Claims
A common dispute that arises in homeowners associations between individual homeowners and the association's management personnel deals with the right on the part of the homeowner to report insurance claim to the association's insurance carrier. Such disputes are generally triggered by an "occurrence," such as a water leak, that has ...
Insurer Not Obligated to Defend HOA in Action Seeking Only Injunctive Relief
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 ...
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 ...
Is Your HOA Properly Covered for Losses From Dishonest Acts?
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, you need to have your HOA covered to prevent losses from dishonest ...
Is Your Homeowners Association Protected by Fidelity Insurance?
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, associations should carry “HOA Fidelity Insurance” or “Employee Dishonesty ...
Lenders Have New Requirements for Condo Insurance Coverage
Lenders Have New Requirements for Condo Insurance Coverage Freddie Mac, Fannie Mae and FHA all have new requirements regarding HOA condo insurance coverage that must be carried by condo owners. Under the new lending guidelines, the lenders are now requiring owners of condominiums to obtain “HO-6” policies.A "HO-6" policy is ...
Misrepresentations to Insurance Carrier Cost Association Over $700,000.00
Misrepresentations to Insurance Carrier Cost Association Over $700,000.00 United States Court of Appeals decision (February 7, 2020). The case involved a dispute between a condominium owners association (“Association”) and its property insurance carrier (“Carrier”) over coverage for property damage resulting from a hailstorm. This content is for Subscribers. To continue ...
Missouri Ct Says Surplus Insurance For Loss Of 9 Out Of 58 Units Gets Distributed To All 58 Owners
Missouri Ct Says Surplus Insurance For Loss Of 9 Out Of 58 Units Gets Distributed To All 58 Owners This case involved an action filed by a homeowners association (“ Association”) against the owners of nine units within the Association in order to obtain declaratory relief concerning the proper distribution ...
NH Ct Says Ambiguous Exclusion Results in Coverage for Ass’n Claims
NH Ct Says Ambiguous Exclusion Results in Coverage for Ass'n Claims In this action a homeowners association that consisted of the owners of 24 residential condominium units filed an action for declaratory relief seeking a court determination that two insurance carriers that provided coverage to the developer of the project ...
Understanding “Loss Assessment” Insurance
Understanding "Loss Assessment" Insurance Loss Assessment coverage is not insurance that is purchased by a homeowners association. It is insurance that a homeowner purchases as a part of their own insurance coverage to provide benefits that will pay the homeowner’s share of a special assessment that resulted from a loss ...
Understanding the Meaning of “Claims Made” Insurance Coverage to Protect Against Claim Denials Due to Late Notification
Understanding the Meaning of "Claims Made" Insurance Coverage to Protect Against Claim Denials Due to Late Notification A homeowners association must have liability insurance that covers the association as an entity, as well as its officers, directors, and volunteer committee members for claims arising from alleged action, or inaction. Such ...
What HOA Directors Should Know When Making Decisions Not to Have Earthquake Insurance
What HOA Directors Should Know When Making Decisions Not to Have Earthquake Insurance The recent 7.0 earthquake in Alaska has brought to light the importance of homeowners associations having proper insurance coverage when a catastrophic event occurs. Unfortunately, it is often not until after the catastrophic event occurs and the ...
