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JohnC46 (South Carolina)
Posts: 14,265
Posted:
We are an HOA consisting of 40 side by side duplex homes and 32 one and two story standalone houses (112 owners). Our Covenants call for each owner to have their own home insurance policy and the HOA to be a Co-Payee on the policy. This is to prevent one from not using their insurance payments as intended. We are only concerned with external appearance, not inside the home issues.

Occasionally we get someone that objects, usually an insurance agent, but one phone call from our lawyer ends the conversation. All that said, we have no way of checking they have insurance and we are the Co-Payee. Our belief is if we see an insurable issue (like a fire) we would get our attorney on the issue ASAP.

How many out there have this same Co-Payee clause and/or would like to have such?

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