Who underwrites D&O policies?

FrankF9 (Missouri)
Posts: 8

Posted:

HI all:

I need to get D&O insurance for a 39 members HOA.

Our dues are 25.00 dollars a year. The HOA has NO assets, no commons
or any property.

The by-laws and CC&R doing not require any insurance of any kind but the Board is concerned in these uncertain times.

Any Ideas

thank you
fvf

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Hi Frank,

I would be concerned, as well - as I noted in the other post, I would NEVER serve on an HOA/COA/POA Board without D&O insurance.

If the HOA has no assets, no common property, etc, you MAY not need liability.

And, if you do get D&O, your assessment will likely about double.

I am assuming you are maintaining the status as an HOA to ensure a more consistent maintenance of properties?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Frank

Contact local independent insurance agents. They can find a company(s) for you.

FrankF9 (Missouri)
Posts: 8

Posted:

yes, and that is all is does.

Also the no basketball hoops attached to house, no chain link, non working cars in driveways.

Just to maintain continuity between homes.

thank you.
fvf

FrankF9 (Missouri)
Posts: 8

Posted:

local independent insurance agents have been of no help so far.

I was hoping some board member might tell me the name of who they have as a insurancer.

thank you
fvf

SheliaH (Indiana)
Posts: 6,964

Posted:

If the HOA doesn't have any assets or common areas, I don't see why dues are even necessary (where's that money going?) Or an HOA for that matter. I know you have covenants, but homeowners can enforce those against each other and don't necessarily need a formal HOA, but ok. This reminds me of a block club as opposed to a HOA, but if that's what this is, ok.

The posting rules on this website don't allow use of actual names of vendors, so you may have to keep looking for an agent. If you have a property manager, you could ask him or her, or call a few property managers to get a referral. Or Google HOA D & O insurance and see what comes up.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

FrankF9 (Missouri)
Posts: 8

Posted:

Quote:

Posted By SheliaH on 07/07/2020 11:09 AM
If the HOA doesn't have any assets or common areas, I don't see why dues are even necessary (where's that money going?) Or an HOA for that matter. I know you have covenants, but homeowners can enforce those against each other and don't necessarily need a formal HOA, but ok. This reminds me of a block club as opposed to a HOA, but if that's what this is, ok.

The posting rules on this website don't allow use of actual names of vendors, so you may have to keep looking for an agent. If you have a property manager, you could ask him or her, or call a few property managers to get a referral. Or Google HOA D & O insurance and see what comes up.

HI

Thank you for your reply. This is a HOA in a neighborhood with private homes who are bound to the By-laws and CC&R.

There not a management company, no employee ( er ) all volunteer board members and non profit corp.

We have had this HOA scene 1986 and it has put liens on properties in the past. The dues goes in a HOA account so if funds are needed we don't have to special assess everyone.

I believe if there were no HOA there would be no CC&R to follow so I fail to see how a homeowner could take any action on another homeowner for not following rules that wouldn't exist.

Most people I have talked to mistakenly think that all HOA have to run a certain way but I have been schooled now by 3 law firms now as to HOA's and the only thing common is they must list the rules of how they run ( By-laws ) and the rules of what the members must obey (CCandR). It has been an eye opener to me.

I really just want to find a company that deals in this type of coverage BUT I don't want to break any rules of the site.

If someone knows of a company that deals in D and O insurance please email me.

[email protected]

all the best to everyone and stay safe.

fvf

BillH10 (Texas)
Posts: 1,217

Posted:

Frank

There must be a chapter of CAI-Community Associations Institute in Missouri, certainly in or around St. Louis or Kansas City at a minimum. Probably around some of the other larger cities as well.

Call one of their offices and ask for a list of insurance agents who are members. You may even find it on a website if the CAI chapter(s) have one.

I will warn you, the expense in the Dallas area is $800 to $1,000 annually, you may need a dues increase.

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By FrankF9 on 07/07/2020 11:32 AM

Posted By SheliaH on 07/07/2020 11:09 AM
If the HOA doesn't have any assets or common areas, I don't see why dues are even necessary (where's that money going?) Or an HOA for that matter. I know you have covenants, but homeowners can enforce those against each other and don't necessarily need a formal HOA, but ok. This reminds me of a block club as opposed to a HOA, but if that's what this is, ok.

The posting rules on this website don't allow use of actual names of vendors, so you may have to keep looking for an agent. If you have a property manager, you could ask him or her, or call a few property managers to get a referral. Or Google HOA D & O insurance and see what comes up.

We have had this HOA scene 1986 and it has put liens on properties in the past. The dues goes in a HOA account so if funds are needed we don't have to special assess everyone.

I believe if there were no HOA there would be no CC&R to follow so I fail to see how a homeowner could take any action on another homeowner for not following rules that wouldn't exist.

Most people I have talked to mistakenly think that all HOA have to run a certain way but I have been schooled now by 3 law firms now as to HOA's and the only thing common is they must list the rules of how they run ( By-laws ) and the rules of what the members must obey (CCandR). It has been an eye opener to me.

You mention money going into an account so you don't have to special assess anyone, but it's still not clear what the association would spend money on.

I believe if there were no HOA there would be no CC&R to follow

This is absolutely not true, CCRs/Deed Restrictions became common before HOAs did, and there are many communities across the country that have restrictions without an HOA. It is up to owners to enforce against other owners via the courts as needed.

Escaped former treasurer and director of a self managed association.

FrankF9 (Missouri)
Posts: 8

Posted:

Quote:

Posted By DouglasK1 on 07/07/2020 3:07 PM

Posted By FrankF9 on 07/07/2020 11:32 AM

Posted By SheliaH on 07/07/2020 11:09 AM
If the HOA doesn't have any assets or common areas, I don't see why dues are even necessary (where's that money going?) Or an HOA for that matter. I know you have covenants, but homeowners can enforce those against each other and don't necessarily need a formal HOA, but ok. This reminds me of a block club as opposed to a HOA, but if that's what this is, ok.

The posting rules on this website don't allow use of actual names of vendors, so you may have to keep looking for an agent. If you have a property manager, you could ask him or her, or call a few property managers to get a referral. Or Google HOA D & O insurance and see what comes up.

We have had this HOA scene 1986 and it has put liens on properties in the past. The dues goes in a HOA account so if funds are needed we don't have to special assess everyone.

I believe if there were no HOA there would be no CC&R to follow so I fail to see how a homeowner could take any action on another homeowner for not following rules that wouldn't exist.

Most people I have talked to mistakenly think that all HOA have to run a certain way but I have been schooled now by 3 law firms now as to HOA's and the only thing common is they must list the rules of how they run ( By-laws ) and the rules of what the members must obey (CCandR). It has been an eye opener to me.

You mention money going into an account so you don't have to special assess anyone, but it's still not clear what the association would spend money on.

I believe if there were no HOA there would be no CC&R to follow

This is absolutely not true, CCRs/Deed Restrictions became common before HOAs did, and there are many communities across the country that have restrictions without an HOA. It is up to owners to enforce against other owners via the courts as needed.

Thank you for replying again. I was able to get a quote on D&O insurance and this site was of help.

I do appreciate your questions.
I didn't come here to be an authority but only to ask for help.
I have learned alot but I can alway stand to learn more.

to your points.

1. "many communities across the country that have restrictions without an HOA." Cool, but not community so my statement stands.

2. We use the dues to pay for the HOA legal fees, court filing fees, and in the past we would have a community picnic with a members vote at that time. Now we will also pay 1000.00 for D&O insurance. So it looks like a increase in dues are due.

thank you again.

fvf

FrankF9 (Missouri)
Posts: 8

Posted:

Quote:

Posted By DouglasK1 on 07/07/2020 3:07 PM

Posted By FrankF9 on 07/07/2020 11:32 AM

Posted By SheliaH on 07/07/2020 11:09 AM
If the HOA doesn't have any assets or common areas, I don't see why dues are even necessary (where's that money going?) Or an HOA for that matter. I know you have covenants, but homeowners can enforce those against each other and don't necessarily need a formal HOA, but ok. This reminds me of a block club as opposed to a HOA, but if that's what this is, ok.

The posting rules on this website don't allow use of actual names of vendors, so you may have to keep looking for an agent. If you have a property manager, you could ask him or her, or call a few property managers to get a referral. Or Google HOA D & O insurance and see what comes up.

We have had this HOA scene 1986 and it has put liens on properties in the past. The dues goes in a HOA account so if funds are needed we don't have to special assess everyone.

I believe if there were no HOA there would be no CC&R to follow so I fail to see how a homeowner could take any action on another homeowner for not following rules that wouldn't exist.

Most people I have talked to mistakenly think that all HOA have to run a certain way but I have been schooled now by 3 law firms now as to HOA's and the only thing common is they must list the rules of how they run ( By-laws ) and the rules of what the members must obey (CCandR). It has been an eye opener to me.

You mention money going into an account so you don't have to special assess anyone, but it's still not clear what the association would spend money on.

I believe if there were no HOA there would be no CC&R to follow

This is absolutely not true, CCRs/Deed Restrictions became common before HOAs did, and there are many communities across the country that have restrictions without an HOA. It is up to owners to enforce against other owners via the courts as needed.

Thank you for replying again. I was able to get a quote on D&O insurance and this site was of help.

I do appreciate your questions.
I didn't come here to be an authority but only to ask for help.
I have learned alot but I can alway stand to learn more.

to your points.

1. "many communities across the country that have restrictions without an HOA." Cool, but not community so my statement stands.

2. We use the dues to pay for the HOA legal fees, court filing fees, and in the past we would have a community picnic with a members vote at that time. Now we will also pay 1000.00 for D&O insurance. So it looks like a increase in dues are due.

thank you again.

fvf