- Home owners association
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As a board member of a community, you have a great deal of responsibilities on your hands. While you may be inclined to focus the majority of your attention on the overall well-being of the community, you also have a duty to ensure adequate insurance protection. Insufficient insurance can lead to a great deal of problems. Gathered is some must know information for HOA board members and a few questions to ask yourself in determining your HOA’s insurance risk factor:
Information HOA Board Members Must Know
- Just because you do not have anyone on your payroll does not mean that you do not need to hold adequate insurance, including workers compensation. To safeguard your investment, you must hold the right amount of insurance.
- As HOA board members, you have a responsibility to both enhance and protect the value of your community.
- Communication amongst HOA board members is key to the survival of the community, emphasizing the importance of holding regular board meetings.
- Each HOA board member must adopt and adhere to a written Code of Conduct.
- Rather than becoming “condo commandos,” it is important that you are strict and inform your residents of the proper way to handle things and their responsibility. Many minimal infractions occur due to lack of knowledge or misunderstandings, which is why you must work with your residents to make for a safe, balanced, and enjoyable place to live.
- Most importantly, make an effort to continuously recruit new volunteers for your board and implement proper training for new members.
- It is imperative that you are diligent in only hiring licensed and insured contractors. It is your responsibility to check for adequate insurance to ensure that your community and its members and residents are protected.
Determining Your HOA’s Insurance Risk Factor:
- When hiring contractors, does your property manager and association obtain the contractors’ proof of insurance and licensing?
- Are you and your property manager careful about only hiring licensed and insured contractors?
- Are you confident that the pre-approved contractor of your choice has not allowed a lapse in coverage between the time of approval and completion of the job?
Contact Scott Litman Insurance Agency in Woodland Hills for all of your California homeowner’s association insurance needs. With over 90 percent of policies reviewed lacking vital coverage options, we will review your policy to ensure that you are not violating CC&R requirements. We will identify gaps in coverage and provide your HOA with its deserving security.