Insurance claim

In Florida, if the association's board of a H.O.A. that operates unde rFl. Stat. 720 Home owners Association submits a fraudulent insurance claim to the association's insurance carrier, that claims damage to a perimeter fence due to hurricane wind damage that incurred after wind damage was added to the insurance policy when the policy was renewed the following year after the actual hurricane damage occured. The actual damage,( verifiable by official records of the associatiion board minutes etc) occured in 2022 and the insurance claim submitted 2024 stated 2024 was when the damage occured. The insurance company recently sent a check for the damage incurred based on the insurance company's adjusting firm's based on what he was told by an association director when the inspector inspected the damage claims. The reimbursement check from the insurance company was for more than $20,000 but less than $100,000 which is a grade 2 felony per Fl. Statutes. Besides, in all probility of having to pay the insurer back the amount they paid for the damages that they were under the impression was a correct insurance claim submitted by the association, what if any other penalalties would the association members be liable for and what part of the monies due back to the insurer, if any, would the directors who submitted the fraudulent claim be responsible for?

Uh, Ralph, you might want to break up your sentences into paragraphs next time - this was hard to read.

As for your questions, they are legal with a capital L, so this needs to be discussed with an attorney. According to Google, a grade 2 penalty can result in a prison term up to 15 years and a fine up to $10K, but the sentence can be based on other factors. There may also be more than one charge, like mail or wire fraud. And paying back the money received won't be enough - the insurance company could also sue for court costs and attorneys fees, so that amount could exceed $20k.

As for the association members, the association itself is a legal entity, so people won't be sued individually, but could be hit with a nasty special assessment to pay the fines and penalties levied against it. I hope your association master policy has directors and officers coverage and that it's enough to cover what these people did. If not, you may have to add that money to the special assessment the homeowners may have to pay.

And you do know the association will likely lose its coverage and insurance companies are already saying byebye to the state because of hurricanes and poor practices regarding reserves, right? Then what will the community do?

Sorry, but you're way beyond what anyone can suggest on this website or anywhere else on the internet. Besides, most of us aren't lawyers, haven't seen your policy or have the details on who did what. I hope you weren't on the board that pulled this stunt.

And if you do find an insurer, it will cost a bundle. Therefore, higher assessments would be needed to pay for it.

Thanks to all, Thank heaven Iam not on the board. Was very intrumental in making our community gatede 30+ years ago and am abpout a handful who were involved 30 yrs ago lleft. I am basically endorsed to be the watchdog. More and more wishing i WAS NOT INVOLVED 30 YEARS AGO. aGAIN THANKS TO ALL.