POA Can not obtain D & O insurance

Started by AndreaM8 • 1 replies • 1011 views

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AndreaM8 (Montana)
Posts: 1

Posted:

I serve on our POA as president. The former board was involved in many lawsuits. Because of the payouts we were dropped by our insurer. We have tried several times to obtain insurance and have been denied multiple times. We have been advised by several insurance companies to form a new association and start fresh. 73 percent of the homeowners have voted in favor of the new association. About 5% want to keep the old association. The remainder of the homeowners have not responded or just don't care. The way our bylaws are written we are being held captive by the 5%. We cannot move forward and form a new association because this 5% does not want it to happen. Do we have recourse? I do not want to remain on a board that cannot get insurance. Help. We live in Montana.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Can you get enough votes to change the amount of votes needed to do the change? Change the documentation that dictates the percentage of votes needed to make certain changes. If it's impossible to get 100% then lower it to 75%.

You think the homeowner's understand now the importance of insurance and the expense it costs the HOA? Hard lesson to learn for sure. If your HOA does get insured, it will be paying highly.

Now you may have an alternative on a personal level while this sorts all out. Talk to your own insurance. There may be some insurance coverage you may pay for out of your pocket like an "umbrella policy". It will cover your personal assets from some type lawsuits. Not sure of the ins/outs of it. Would ask an insurance agent more familiar. It may be something every board member may want. It's not necessarily going to come out of the HOA pockets unless agreed re-imbursement.

Former HOA President

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