Managing HOA insurance claim proceeds

We are a small self-managed condo owners association. One of our unit owners experienced a property loss due to a severe wind/rain storm...roof rolled up & off the little patio home. Our master condo owners insurance company has been very responsive in dealing w the loss. Farmers estimated the damages in excess of $43k...after taking out "recoverable depreciation & O&P" (whatever that is) & our policy's $1000 deductible, our association received a check for around $18k. We initially wanted to just turn around & give this amount directly to the affected unit owner. Our accountant advised against this. That our COA should only pay funds to the owner after he presents us w invoices for the repair work actually done. We certainly will forward any invoices we receive from the unit owner to Farmers to go after the recoverable amounts withheld by Farmers, but see no reason not to give the $18 to the owner. Do we need a save & hold harmless agreement or similar instrument to protect the association from say a contractor who claims our unit owner still owes them money? Thanks as always for the feedback in advance.

was the check made payable JUST to the association or the Association AND the homeowner? From the banking industry, I have seen it done both ways and I think if it is made payable to both ,you need to sign it over to them so they can pay for repairs asap.

Rich

It is possible that if you give the money directly to the owner they may take the money and run and/or do an inferior repair job.

In our association the HOA is listed as co-payee on all insurance claims to prevent the above.