New HOA and Insurance

Started by TomM6 • 5 replies • 1218 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

TomM6 (Missouri)
Posts: 2

Posted:

We are a new association that has been more or less forced into taking over the HOA due to a death in the developers family. Some background: we are a subdivision of SFR, about 36 at the momement with about 10 empty lots. We have a pool and some common areas, we are located in MO. The HOA has been incorporated as a not for profit with the state. We had some covenents but the atty says we need to re-do them. The developers wife has just (without our knoledge) quit claimed the pool property to the HOA and has now thrown the problem of insurance into our lap. Previously the developer has handled the insurance issue. What advice do you have for finding and getting insurance so we can open the pool for our members? We are not a large assoc so cost is a big issue. What should we look for and where can we look??

Thanks

JohnK3 (Pennsylvania)
Posts: 967

Posted:

Many of the big Property/Casualty insurers offer Condo/HOA policies. Contact agents from them, or better yet, a few independent agents. We pay SF about $700 a year for a $2M/4M policy that includes common area liability, E&O coverage for the Board, and a bunch of other stuff. NOTE: we don't have a pool or clubhouse, but do have four ponds.

RogerB (Colorado)
Posts: 5,067

Posted:

Tom, the HOA probably already has insurance. What is needed is to take over control of the Board of Directors from the Developer's family. I would not worry about the Covenants at this time; rather make sure the Developer has met their obligations to the development. Search on a thread about coverting the HOA Board from Developer control to homeowner control.

TomM6 (Missouri)
Posts: 2

Posted:

The developer passed away about a year and a half ago, and his wife wants to wash her hands of the whole thing. She has not been cooperative about the whole thing. They have not met the obligations they promised to the home owners but she wants nothing to do with it anymore and we do not know what we should do. We are a small community only about 36 homes. We just recieved a quit claim for the pool property in the mail out of the blue. She had insurance on the pool but now e have no idea if it is insured or not. So we are starting from scratch. Any help is appreciated.

KirkW1 (Texas)
Posts: 1,665

Posted:

I would look for some innovation in resolving the issue. If your developer had promised something (in writing) that hasn't been delivered, then the developer's estate is obligated to provide it. Having said that, I can understand why the widow wants to be rid of the whole thing.

So what to do? I would call a special meeting of the homeowners and look for ways to fix the issue. Perhaps you could get the widow to give land in lieu of improvements she is now obligated to provide. But this only works if your association wants the land. Look for a realator's advice on this front.

You may also want to find a replacement declarant to take over the developer's interest.

You might find the best course of action is to sue the estate. But I would look for tidier ways to the end you want first.

JosephW (Michigan)
Posts: 882

Posted:

Tom,

In the near future, the owners are going to be faced with decisions that will have a major impact on the value of their homes. And you don't know what you're doing or what your facing. Sorry, but this is the time you need to find some legal help. Not only do you have the pool and common grounds, but there are also 10 unbuilt lots that may or may not be part of the association. What happens to them can severely impact your homes (some examples: they are not maintained and look horrible; the widow sells them to another developer who ignores the association; the widow removes them from the association (developers often retain that right) and sells them to someone else who builds a mobile home park on it)

Insurance is the least of your problems - if you can't get a policy - don't open the pool until you do.

You don't even know who has the authority to obligate the association to anything - the widow's bailing out, who has the books? the bank accounts? Have you had a transition meeting to owner control of the association?

You need to get this straightened out now, not after you've stumbled through the potholes looming ahead. Find a knowledgable association attorney now - sit down with him or her and find out what you need to do.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here