Comments on: Q&A: Ask Elliot California Condo Association HOA Insurance Questions Here http://www.hoainsurance.com/2009/hoa-condo-association-insurance-questions/ Condo Association Insurance Info for California Homeowners Associations - Free HOA Insurance Advice for Board Members & Property Mgrs - Master Policy, Fire, Earthquake, Liability Quotes Fri, 14 May 2010 17:56:22 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Elliot Katzovitz http://www.hoainsurance.com/2009/hoa-condo-association-insurance-questions/comment-page-1/#comment-247 Elliot Katzovitz Wed, 28 Apr 2010 23:10:50 +0000 http://www.hoainsurance.com/2009/139/#comment-247 The legality of it is better discussed by an attorney, but there are several problems they are creating. 1. If this is a condo association and not a homeowners association all owners that have mortgages are going to be in default, because you need to make sure that coverage is in place to be in compliance with your loan covenants. Otherwise every bank is going to place forced insurance against your building so you will now being paying for multiple policies. 2. I don’t know what state you are in but if you are in CA As an association you have no liability coverage so per 1365.9 of the CA civil code each individual owner is now responsible for any judgments and paying the defense of any suits that might arise. 3. Assuming the CC&Rs require the association to maintain insurance and that you are in CA, if a claim does occur, and there is no coverage it is almost a given the board is going to comply with the CC&Rs. Once again according to 1365.7 of the CA civil code if a board fails to maintain Directors and officers coverage then the board members are personally held liable for their actions and will be responsible for any defense or judgments arising out of their actions. There are more issues but these are the three major issues that you are going to need to deal with. The legality of it is better discussed by an attorney, but there are several problems they are creating.

1. If this is a condo association and not a homeowners association all owners that have mortgages are going to be in default, because you need to make sure that coverage is in place to be in compliance with your loan covenants. Otherwise every bank is going to place forced insurance against your building so you will now being paying for multiple policies.
2. I don’t know what state you are in but if you are in CA As an association you have no liability coverage so per 1365.9 of the CA civil code each individual owner is now responsible for any judgments and paying the defense of any suits that might arise.
3. Assuming the CC&Rs require the association to maintain insurance and that you are in CA, if a claim does occur, and there is no coverage it is almost a given the board is going to comply with the CC&Rs. Once again according to 1365.7 of the CA civil code if a board fails to maintain Directors and officers coverage then the board members are personally held liable for their actions and will be responsible for any defense or judgments arising out of their actions.

There are more issues but these are the three major issues that you are going to need to deal with.

]]> By: Elliot Katzovitz http://www.hoainsurance.com/2009/hoa-condo-association-insurance-questions/comment-page-1/#comment-246 Elliot Katzovitz Tue, 27 Apr 2010 23:01:24 +0000 http://www.hoainsurance.com/2009/139/#comment-246 Depends on the CC&R’s and rules of the association. Everyone is governed differently. Depends on the CC&R’s and rules of the association. Everyone is governed differently.

]]> By: Debbie Sperry http://www.hoainsurance.com/2009/hoa-condo-association-insurance-questions/comment-page-1/#comment-245 Debbie Sperry Sat, 24 Apr 2010 16:31:41 +0000 http://www.hoainsurance.com/2009/139/#comment-245 If a claim is submitted through the HOA insurance policy, is the deductible paid by the HOA or the homeowner? If a claim is submitted through the HOA insurance policy, is the deductible paid by the HOA or the homeowner?

]]> By: Jennifer http://www.hoainsurance.com/2009/hoa-condo-association-insurance-questions/comment-page-1/#comment-239 Jennifer Fri, 26 Feb 2010 19:53:44 +0000 http://www.hoainsurance.com/2009/139/#comment-239 The HOA where I live does not have a current HOA policy. Is this legal? What should I do to protect myself and the other owners in my condominium complex? We have a management ocmpany thatbasically just does the book keeping - so they are of no help. The HOA where I live does not have a current HOA policy. Is this legal? What should I do to protect myself and the other owners in my condominium complex? We have a management ocmpany thatbasically just does the book keeping – so they are of no help.

]]> By: Elliot Katzovitz http://www.hoainsurance.com/2009/hoa-condo-association-insurance-questions/comment-page-1/#comment-219 Elliot Katzovitz Tue, 12 Jan 2010 20:23:39 +0000 http://www.hoainsurance.com/2009/139/#comment-219 From the information that I have I can’t tell you if insurance will cover it. What is the cause of the sinking? Sinkholes are typically covered, subsidence is typically excluded. Is this a failed maintenance issue or an act of god. If it is maintenance it is going to be typically excluded, but if it is an act of god it can be covered. In order to know for sure you need to see the fine print of your contract and have all the facts. If I was living in the association and I was facing a potential $100,000 loss for all of the owners, I would be tendering it to the carrier to see if they will pay. This is what insurance is for. From the information that I have I can’t tell you if insurance will cover it. What is the cause of the sinking? Sinkholes are typically covered, subsidence is typically excluded. Is this a failed maintenance issue or an act of god. If it is maintenance it is going to be typically excluded, but if it is an act of god it can be covered. In order to know for sure you need to see the fine print of your contract and have all the facts. If I was living in the association and I was facing a potential $100,000 loss for all of the owners, I would be tendering it to the carrier to see if they will pay. This is what insurance is for.

]]> By: Karen http://www.hoainsurance.com/2009/hoa-condo-association-insurance-questions/comment-page-1/#comment-218 Karen Tue, 12 Jan 2010 01:17:43 +0000 http://www.hoainsurance.com/2009/139/#comment-218 hi ~ my mom lives in a condo/townhouse (i know there is a big difference, but haven't quite figured out which her unit is). the whole building is sinking (6 units total). her personal insurance doesn't cover this, but I'm wondering if the HOA would have some sort of coverage (because this is a huge out of pocket expense ($100k++)to fix for the 4 owners whose units are sinking!). and if so, how do I approach getting them to help out (because the HOA said they won't do anything when I first talked to them) thanks! hi ~ my mom lives in a condo/townhouse (i know there is a big difference, but haven’t quite figured out which her unit is). the whole building is sinking (6 units total). her personal insurance doesn’t cover this, but I’m wondering if the HOA would have some sort of coverage (because this is a huge out of pocket expense ($100k++)to fix for the 4 owners whose units are sinking!). and if so, how do I approach getting them to help out (because the HOA said they won’t do anything when I first talked to them) thanks!

]]> By: Elliot Katzovitz http://www.hoainsurance.com/2009/hoa-condo-association-insurance-questions/comment-page-1/#comment-9 Elliot Katzovitz Mon, 30 Mar 2009 15:59:09 +0000 http://www.hoainsurance.com/2009/139/#comment-9 I don’t know what state you are in. but in CA it is legal. They have a right to submit a claim under the master policy. There are strategies to eliminate the effects of someone doing this. I"m happy to share them with my clients. I don’t know what state you are in. but in CA it is legal. They have a right to submit a claim under the master policy. There are strategies to eliminate the effects of someone doing this. I”m happy to share them with my clients.

]]> By: Q http://www.hoainsurance.com/2009/hoa-condo-association-insurance-questions/comment-page-1/#comment-8 Q Fri, 06 Mar 2009 02:54:17 +0000 http://www.hoainsurance.com/2009/139/#comment-8 good evening i wanted to ask what happens when a member of the HOA submits an insurance claim(for an exclusive common area) using the HOA insurance without HOA approval? The HOA has not seen any estimates. The owner faxed them directly to the insurance company. It seems as though this violating something??? thank you sorry..1st email had my wrong email address good evening
i wanted to ask what happens when a member of the HOA submits an insurance claim(for an exclusive common area) using the HOA insurance without HOA approval? The HOA has not seen any estimates. The owner faxed them directly to the insurance company. It seems as though this violating something??? thank you
sorry..1st email had my wrong email address

]]>