Condo Association wants to drop Insurance!!!!

Started by GinaM • 2 replies • 1447 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

GinaM (Florida)
Posts: 2

Posted:

Can someone please tell me how the President of the Condo Association
where I live can actually think about dropping the buildings/structural
wind/storm coverage? Our insurance rate went up another 4900.00. Can he do this?
What happens to those of us who still hold mortgages on our units?
Is it legal for the Condo building to not have insurance for wind/storm?
Our meeting is this saturday. If anyone has any info that would be helpful
it would be greatly appreciated.

Thank you

GlenL (Ohio)
Posts: 5,491

Posted:

Check your CC&R's, I know ours spells out the minimum amount of insurance the Association must have. Unless you have millions on deposit and are going to be self insured. The BOD has a fiduciary obligation to maintain the insurance. It also may be required by your mortgager and they may have the option of obtaining insurance to protect their investment and charging it to you. Tell your president it's either time to raise the fees to pay for the insurance or shop around.

Studies show that 5 out of 4 people have problems with fractions

RogerB (Colorado)
Posts: 5,067

Posted:

Gina, your Condo President has no authority to drop the insurance. The Board should not even begin such consideration - your CC&Rs most probably require a minimum and more than the minimum may be needed. The Board should go shopping to see if less expensive insurance is available from a different company.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here