association insurance

Started by DianeW • 1 replies • 1139 views

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DianeW (Maryland)
Posts: 147

Posted:

I am the new secretary for a Property Owner's Association in Georgia. Although I have been a strong advocate for obtaining both D&O and GL insurance, there is not enough money from the receipt of dues left to pay the insurance. I want to send a letter to all the owners advising them of this so they may make a decision regarding their feelings on raising dues for the purchase of insurance. BUT the other officers are dragging their heels on the subject and not moving forward quickly enough on this issue. I feel they would let the subject drop completely if I did not mention it repeatedly. Our covenants and by laws do require it but they also require a 75% approval to raise the dues. Can someone tell me if I am being irrational on this subject. I need a calm objective answer. The lawyer has advised that just by incorporating, we have insulated ourselves from potential loss due to a claim. (I think he's over simplifying things but he is the lawyer.) So, what should I do?

SusanW1 (Michigan)
Posts: 5,202

Posted:

Yes, your state's not-for-profit coverage does offer some coverage to Board members, but what about the General Liablity for the Association? What if a Board member trips on the carpet on the way to the Board meeting and is out of work for 2 years?

Does your HOA have assets? If so, they need to be protected.

The way things are now, everyone is sue-happy.

Have you costed it out?

Let something else slide, but be sure that your HOA is covered!

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