HOA MIP "Isurable Interest"

Started by MichaelK18 • 2 replies • 1361 views

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MichaelK18 (Missouri)
Posts: 1

Posted:

Ticket History
[email protected] (Client) Posted On: 30 Mar 2013 1:27 PM

We live in a villa community and would like to get a Master Insurance Policy to cover all the villas from the studs out. We live in the state of Missouri. We however can not get by the sticking point of "Insurable Interest" point in the policy. The HOA does not have a insurable interest in any Villa so if anything happens to the Villas the Insurance Company can come back and state the HOA has no Insurable interest in the Villas and not pay, that is the way we see this. Are we wrong or what do we not understand?

Michael Kriegshauser

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Confused here. Are you trying to get insurance for your own villa or insurance for the entire HOA? The HOA does not typically own any of the homes but are responsible for outside appearances. (This to include roofs, siding, etc.. On buildings that share walls). Plus liability insurance for board members and common property/amenities.

Villas usually share one fire wall between units. So not sure where it draws the line. I would talk to an insurance company and get their opinion. Plus review your documents which should explain the HOA insurance requirements. It should be in there.

Former HOA President

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Mich

I am not nor do I play a lawyer.

Insurable interest is established by ownership, possession, or direct relationship. As an example: people have insurable interests in their own homes and vehicles, but not in their neighbors' homes and vehicles, and certainly not in those of strangers.

That said, I would think an Association made up of owners would have an Insurable Interest in the "entire" Association.

Who is saying otherwise?

Hope this helps.

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