Must make a rule that all unit owners must carry a $100,000 liability insurance.

Creating a rule is huge. It is not a small thing. Are you a condo?

Look at your documents to see if there's language that allows the board to enact additional rules that flesh out the bylaws or CCRs. They can't supersede the documents, so your attorney will need to help we with drafting the rule This should be adopted by the board as a resolution that's voted on during an open board meeting.

But before you do that, you'll need to look at the mastercpolicy to see what it says about changing the terms of the coverage. You didn't say where you got the information on this rule- if that came up during a conversation, ask that person where he or she got it. Is it in writing and if so, where? Does this rule appy to HOA insurance or something else? Have you spoken to your insurance agent?

As you know or should know, HOA master insurance is increasing everywhere and some states are more affected than others because they've had more natural disasters (e.g. California wildfires, Florida hurricanes, etc.) The disasters are getting more intense and some companies no longer cover HOAs at all because of it. That may be driving this because insurance comoanues are trying to limit their payouts any way possible. A talk eith your state i b surance commission may also be helpful in researchinb this rule.

Youll also need to inform the homeowners about this IMMEDIATELY. If the insyrance company wrote a letter to the board explaining the change in policy, it should be distributed to the homeowners. Encourage questions and perhaps gather the m I st common and give them to the agent to draft a response.

Finally, do what you can to buy your community some time if you have no choice but to enact a rule. For example, the carrier might give the community until the end of the year to comply. Everyone must provide written documentation of the coverage that's kept in their master file with the association and notify the property manager of changes. Those who rent out their homes should already be requiring renters insurance of their tenants, and proof of that should be sent to the association.

If you've never done a risk assessment of your community, this would be a good time to start. If you know where you're most vulnerable, you may be able to take steps to address them and improve your chances of keeping your coverage. Yes, you still need to consider switching companies - doesn't mean you will and you're correct that a new company may be more expensive, but you need to explore all options. Good luck and keep us posted - this could be another wrinkle in HOA land that may hit the rest of us.

$100k isn’t much insurance.

I've created 17 rules for our condo. Saved us a lot in $$$$ doing it. I can create this one will be given to atty for blessing. There's the notice and comment, than notice of a rule. Have to have a meeting and vote. Luckily for a rule its majority for declaration its 67% of the majority at the meeting.

They want it to say in so many words . "All Owners are required to cover at least $100,000 in liability coverage on there H06 policy." With this rule it will be verified by copies a COI from their insurance company. Don't know if the wording should be tweaked. than notice and comment of this rule, Meeting, and notice of a rule amended. In our rules we have a insurance area. with not much in it.

They want it to say in so many words . "All Owners are required to cover at least $100,000 in liability coverage on there H06 policy." With this rule it will be verified by copies a COI from their insurance company. Don't know if the wording should be tweaked. than notice and comment of this rule, Meeting, and notice of a rule amended. In our rules we have a insurance area. with not much in it.

I really can share some helpful really good wording, Michelle. But I'm not comfortable doing that without knowing what your CC&Rs say about insurance. it might be the Board has no authority to change anything about the existing CC&Rs re: insurance.

We all know that changing rules is a hella lot easier & cheaper than changing CC&Rs. But that does NOT mean HOA boards can just approve anything the Board wishes to its Rules & Regs.

And I really want to know what your CC&Rs, or other governing documents, or CT statutes say EXACTLY about amending (adding, changing, deleting) "rules."

Since there seems to be a fair amount of interest in this subject I’ll cite our CC&Rs. Michelle: even though you're unable to cite how rules must be made per your HOA's governing documents, I'm assuming that your HOA attorney (not some other kind) will tell you if you may make a "rule" on this topic--given the content of the insurance section of your CC&Rs-- or if you must amend your CC&Rs.

If your Board is able to make a rule about this, I assume it would be done at an open board meeting so that owners have a chance to attend and ask questions, etc. It also sounds like your Board must send out the proposed new rule to owners for a specified comment period, which sounds very similar to Calif. retirements for rule changes. Unless your HOA is huge, one Town Hall presentation to owners by your agent as introduced by a board member should be sufficient to convince owners that there’s really no choice.

Perhaps most owners already have some sort of an HO6 policy. For my 2 bd, 2ba 1,150sf condo, my annual premium is $532. $ 42of that is for $500,000 liability, which also covers damage caused by my Units to others, their "loss of use" while repairs are made, etc.

Our multistory condo bldg opened in 2001 and the following was in our original CC&Rs:

“INDIVIDUAL INSURANCE. Each Owner shall maintain property insurance against losses to personal property located within the Unit and to any upgrades or Improvements [e.g. cabinets; floor coverings, fixtures etc.]* located within the Unit and liability insurance against any liability resulting from any injury or damage occurring within or outside the Unit in such form, in such amounts as reasonable for this Project and complying with any other requirements relating to insurance maintained by an Owner as may be specified in the Rules.”

So, as shown, our HOA’s Board was authorized to make rules about this topic. But, since we were restating our CC&Rs in 2022, the Board added the following with our HOA attorney’s wording: “Owners must provide a Certificate of Insurance to the Association within thirty (30) days of procuring or renewing their insurance policies or upon demand by the Association.” My HOA is currently in that 30-day "demand" window from the Management staff.

And: “The Association may also put into effect and pay the premium for any insurance which an Owner is required to maintain, but which an Owner fails to maintain or to provide evidence of such maintenance …to the Association’s satisfaction. In such circumstances, the Association shall be entitled to levy an Enforcement Assessment* against the Owner’s Condominium to obtain reimbursement of all costs and expenses incurred in putting such insurance into effect and maintaining the same.”

*AKA “Bare Walls” insurance.
** An “enforcement assessment” can be levied against owners for a few reasons in my HOA— e.g, damage to HOA common area— after due process, i.e., invitation for an alleged violator to a hearing and a board’s decision.

Good, Michelle. In case clarity suffered at my hands,, all of my citations are from our CC&Rs.