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As a leader of an HOA, you likely have a laundry list of to-do’s on your plate. As there is an overwhelming number of tasks to complete, it’s not uncommon to make mistakes along the way. With that in mind, protect your operation and your decisions with a comprehensive LA HOA Insurance policy and avoid the following common mistakes that members make.
Not understanding how the association works.
Without the right information and knowledge, it’s easy to make critical mistakes that can be costly to the association. Instead of winging it, get the necessary background and education on the HOA operation so that you can make informed decisions.
Overstepping your boundaries.
As a director of the HOA, you are required to make decisions that protect the best interest of the association. However, it’s not uncommon for HOA leaders, especially novice ones, to overstep their boundaries, landing the association in a potentially litigious situation.
Not asking questions.
New board members sometimes jump into their new roles without understanding why previous boards have implemented—or not implemented—past policies. Perhaps a previous board also wanted to make big changes, but it ran into resistance or learned it didn’t have the authority or funds to achieve those changes, explains HOA Leader.
“There’s often no effort to sit and observe rather than to bulldoze. New board members want to change things without realizing there were reasons for that practical process that’s been put in place. Act deliberately. Don’t shoot from the hip. Have full knowledge of the background on a policy and the reasons for it. Do your homework before you make change,” says David Regenbaum, founder, chairman, and CEO of Association Management Inc. in Houston.
About Scott Litman Insurance Agency
At Scott Litman Insurance Agency, we are dedicated to protecting HOAs like yours. We have a unique understanding of the industry and the common risk exposures that you face in your daily operations. In fact, we find that 90% of the policies we review are missing coverages that violate the Covenants, Conditions, and Restrictions (CC&R), exposing the board, HOA and management to lawsuits – which is why our comprehensive policies are tailored to meet your specific needs at competitive prices. For more information about our products, contact our experts today at (818) 879-5980 ext. 201, or fill out our online form.