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Transparency of insurance money

Started by JanineR • 14 replies • 465 views

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JanineR (Tennessee)
Posts: 259
Posted:
First of all, I hope I'm not asking too many questions, but appreciate the responses.

Our community was hit by a tornado nearly a year ago. Their is talk that there is issues with cash.

Do we have the right to see what insurance payments have been deposited into the account and what has been paid out to vendors.

ND (PA)
Posts: 792
Posted:
You most likely do.
I'll make another recommendation to read your HOA documents thoroughly and also your state HOA laws. These docs will indicate what records should be available (and in what manner) for your review.
JanineR (Tennessee)
Posts: 259
Posted:
That's all I have done over the last year is read my documents and look up state law.
I can't see any reason why we can't see these numbers.
So, putting the question to others.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Janine
The amount should show up as Income and where arrived from in the Financial Report such as Insurance/Legal Payment.
JanineR (Tennessee)
Posts: 259
Posted:
That is so concerning, as millions have gone in, and none show on our monthly financial reports.
Construction is almost at a halt
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By JanineR on 02/02/2021 11:28 AM
That is so concerning, as millions have gone in, and none show on our monthly financial reports.
Construction is almost at a halt

When was this money collected?
JanineR (Tennessee)
Posts: 259
Posted:
Three million went in in July 2020.

The next month it showed $2k as a balance. But there is no financial report of where it went to.

Are we allowed more understanding of what came into the account and what went out?

The units are barely down to their studs nearly a year later after the tornado.

----

6/31/2020 $0
7/31/2020 $3,001,649.03
8/31/2020 $2,023.43
9/31/2020 $2,023.75
10/31/2020 $2,024.01
11/31/2020 not provided
12/31/2020 not provided but seems like $940.44
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The question may be how it is to be dispersed? Not sure of what the relationship is to what. Was this a condo complex? Was there still money owed on building? Did people make individual claims? What is the deductible?

I am not quite getting the full picture here as there are many pieces involved. What is the insurance to have covered? What is the owner's insurance to cover?
Former HOA President
JanineR (Tennessee)
Posts: 259
Posted:
It is a condo unit.

Owners have the same questions that you have.
What is the scope of work?
What is to be covered by insurance?
We are not getting the full picture either.

As far as finances, do we have a right to know who that $3mil was sent to and for what scope?
And what other deposits have been made by the insurance company? And where they went to?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
You should but if it was still owned by the developer maybe not so much. The money would be going to the developer. Which may be applied to their damages or losses.

Did anyone make their own insurance claims? If so, what was their results?
Former HOA President
JanineR (Tennessee)
Posts: 259
Posted:
It is not owned by a developer.
It has been owner owned units since the 90s.
I've owned mine for about 15 years
MichaelS56 (Minnesota)
Posts: 859
Posted:
Who on the Board is working with the insurance company? Our insurance company gave the payment to our association to pay the vendors, to keep track of the contracts and to inform the townhome owner's what and when repairs would be made. Not knowing where this money is going and to whom is unconscionable! Who is the general contractor for the project? Hopefully someone will give you the advice you will need to find answers to your questions.

GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By JanineR on 02/02/2021 10:07 AM
That's all I have done over the last year is read my documents and look up state law.
I can't see any reason why we can't see these numbers.
So, putting the question to others.

You can't find any reason why you can't but what is there to say the association must disclose them to you? In Florida, for instance, every owner would have the right to see all of the pertinent information and financial records. But that's because the right to do so is written into the statutes. Does Tennessee not leave owners with the right to examine the official records of the association?
JohnC77 (California)
Posts: 562
Posted:
Quote:
Posted By JanineR on 02/02/2021 2:56 PM
Three million went in in July 2020.

The next month it showed $2k as a balance. But there is no financial report of where it went to.

Are we allowed more understanding of what came into the account and what went out?

The units are barely down to their studs nearly a year later after the tornado.

----

6/31/2020 $0
7/31/2020 $3,001,649.03
8/31/2020 $2,023.43
9/31/2020 $2,023.75
10/31/2020 $2,024.01
11/31/2020 not provided
12/31/2020 not provided but seems like $940.44

I would see if the $3M was transferred to a reserve or secondary account.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
My initial blush is if I was involved with a $3mil insurance settlement and the disbursing of the funds, I would recommend a Secondary Account, as in not mix it with our Annual Budget. I would still make Financial Reports of this account to owners.

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