Mandatory Flood Insurance...Question re Premiums

Are there any HOA board veterans here experienced with FEMA Federally Required Flood Insurance for their HOA? If so, can you tell me if your HOA flood insurer allows anything other than a once annual payment? Paying quarterly would be easier on an HOA budget but our HOA's insurer requires annual payments. Would it differ from insurer to insurer or is the annual payment mandated by the Feds?

These are "apartment style" condominiums with 10 buildings and approximately 10 units (some 14, I believe...those with double breezeways) yielding about 110 units total.

Since inception about 20-25 years ago the HOA assumed and continued the assumption of the flood insurance that affects four buildings only...the clubhouse and three buildings owned by individuals.

The 100 year old flood plain designation if dictated by FEMA and FEMA and the State of Alabama requires flood insurance. The insurer (State Farm for years) requires ONE ANNUAL PAYMENT and will NOT spread it out to monthly, quarterly, semi-annually...which is the reason for the question.

In truth, my personal opinion, the flood insurance SHOULD be paid by the HOA for the clubhouse only (costs assumed by all owners) and the other three buildings should be paid for by the approximate 10 owners of each building. BUT (1) the administration of that would be complex (2) those owners would never vote for that (3) the bylaws might need to be changed (haven't looked at how they address flood insurance...need to (4) changes like that have never happened and are unlikely. But I do know that it is unfair that the other 80 owners who are not in the flood plain should NOT have to pay for the flood insurance of the 30 affected owners.

It's a conundrum that no one wants to address but for any struggling HOA where every dollar is dear and NO ONE wants to raise the VERY REASONABLE dues...it seems imperative that it be looked at and changed. The $7,000-$8,000 annual premium in a single payment is tough.

Dues are only $150 a month...that covers basic cable and water for all units, landscaping maintenance, property manager, electricity for common areas and clubhouse, one large pool and 2 small pools, security system, trash pick up, hazard and fidelity insurance, maintenance of amenities and common grounds, perimeter fencing, etc. Frankly, it's an extreme bargain.

Part of the problem is lack of proper management and a proficient resident manager, difficulty of having a good business minded operating board, overseeing and "fixing" problems like the flood insurance and other pressing issues is that there are (1) VERY complacent, passive, uncaring owners (2) owners of multiple units who have historically been uninvolved (3) and a 50+% rental situation with more than half the owners living off site, many out of state or out of county.

Heck, the "new" resident property manager (who can't even operate a computer) and last years property management company have allowed the dues deliquencies to rise to $20,000 for an extended period, only recently collecting enough to drive it back to a still WHOPPING $15,000. So with unfettered deliquencies like that, the next flood insurance premium will be impossible to come by unless there is a special assessment. And the President of the Board, who has blatantly been a bylaws and covenants violator since 2008 "fiddles while Rome burns". And the other board members have their heads in the sand and pretend everything is "hunky dory". They cannot even produce a budget, income-expense reports, or a comparison of the two. It is all a recipe for a looming disaster.

So back to the insurance, I'm asking this two part QUESTION...does any other HOA here pay for mandatory flood insurance on any other schedule other than an annual payment and if so, who is your insurer?

I was going to put down the actual monthly figure $8000 divided by 12 but it was such a devilish number, I rounded up.

Sorry Bama but from your statement: The $7,000-$8,000 annual premium in a single payment is tough.

It was not obvious that that was what the Board was doing.

Instead of just worrying, I respectfully encourage you to act in combination with other HOA members who share your concerns to change the composition of the board at the next election, or to recall some or all of the current directors.

This is how we turned around our HOA.

Most insurance agency have finance company's that will finance insurance premiums. You make a down payment and then monthly payments. Of course, they charge interest. Check back with your insurance agency and see if they can do this for your Association.

Nancy... I don't have any interest in the HOA working with a finance company, even if "through the insurance company"...I want only to work with the insurance company. As for a small monthly service charge for more frequent premiums...it's not a problem as long as it's quite nominal. Thanks for the info though.

So, by your own admission there is no problem now nor has there been one in the past.

Your entire purpose in posting this (and arguing with those who do not play your game) to make a meaningless complaint about your board of directors, of which you are not a member.

Suppose someone actually posts the name of an insurance company that will allow paying the premium monthly. Then what? You are not in position to influence, much less make, a decision for your association. Given your conduct on this forum, I would imagine that you are a persona non grata in your own community.

Your sole purpose on coming on this forum has been to publicly bitch about petty matters between you and your neighbors. In this thread, you are demanding a solution to problem that exists only in your narrow mind and an answer would be irrelevant as your purpose was to make just one more meaningless complaint about your association and its board members.

Here on this forum you are just as anonymous as the rest of us; in your community you are known and you have been rejected as you are just one of those dysfunctional people who knows how to start a fight but never ends one.

BTW, have a nice day!