Clear and proactive communication between a community association’s Board of Directors and homeowners is essential for fostering a well-informed, engaged, and cooperative community. Many conflicts arise simply because owners are unaware of community rules or where to find governing documents such as CC&Rs, bylaws, and policies. To prevent misunderstandings, boards should ensure these resources are…
The clubhouse in a community—whether part of a condominium, homeowners association, or planned unit development—can become a liability rather than an asset if necessary updates are neglected. Insurance carriers expect critical building systems such as plumbing, electrical, HVAC, and roofing to be maintained and updated to ensure continued eligibility for preferred insurance coverage. While exterior…
The compliance requirements of the Corporate Transparency Act (CTA) are approaching, making it essential for condominium and homeowner associations to understand their responsibilities under this federal law. Designed to promote financial transparency and combat crimes such as money laundering, tax evasion, and fraud, the CTA requires certain entities, including many community associations, to report ownership…
Understanding an insurance policy can be challenging, especially for those unfamiliar with policy language. While working with a community association insurance expert is always recommended, it is equally important for insured parties to review their policy to identify potential coverage gaps and understand policy conditions. Without this knowledge, an association may face significant financial risk…
Insurance resolutions are a vital component of an association’s governing framework, providing clear guidelines on insurance coverage and claims responsibilities for both owners and the Board of Directors. These resolutions help safeguard the financial health of the association by balancing risk between individual owners and the community as a whole. While an insurance resolution cannot…
Insurance premiums continue to be volatile, and the financial strain is especially significant for community associations that experience non-renewals and are forced into high-risk insurance markets. This situation can be financially detrimental, making it essential for communities to proactively address issues that may prevent eligibility for preferred insurance options. Insurance companies evaluate multiple risk factors…
With community association property deductibles on the rise, compliance with lending requirements has become increasingly challenging. Loans supported by Fannie Mae and Freddie Mac include specific insurance guidelines for community associations, one of which limits the property deductible to no more than 5% of the total insurable value. While some associations with deductibles of $50,000…
Realistic Property Deductibles Property deductibles are on the rise for many community associations. These deductibles play an important role in risk management by shifting a portion of the financial responsibility for a loss to the policyholder. Within community associations, it is common for the deductible to be passed on to individual owners for unit damage…
A community association’s roof is one of its most important protective assets. When roofs are aging, neglected, or past their expected life cycle, the risk goes beyond maintenance concerns. Roof issues can lead to interior damage, common area damage, liability disputes, insurance claims, and rising premiums. If the association is responsible for roof maintenance, regular…
Community associations, whether they are condominiums, townhouses, or planned unit developments, are susceptible to numerous risks from lawsuits related to injuries or other accidents on their property. Umbrella or excess liability coverage provides a cost-effective solution for associations to obtain additional liability coverage that surpasses the primary policy limits, serving as a vital safety net…