Consider these five insurance tips to keep your community association out of trouble:
 |
No Umbrella Policy For When It Rains Liability A recent case in Florida found that untrimmed shrubbery led to a tragic accident. The jury awarded $12 million to the plaintiffs. Without an umbrella liability policy, such a judgement would bankrupt a community association. |
 |
The Untrustworthy Trustee In Missouri, a woman was indicted for stealing $300,000 over the course of many years from the community association that placed its trust in her. Without adequate fidelity insurance, the association would never be able to recover those lost resources. |
 |
Common Structures and Features Need Property Insurance Too A car actually drove into the pool of one of our associations, causing a great deal of damage. Fortunately, the loss was covered – thanks to property insurance that covered structures and features like fountains, streetlights, gazebos, paved walking trails and, in this case, the community pool. |
 |
When the Lawyers Are Swinging Hammers, Directors and Officers are Nails Directors and officers of community associations need protection in the event of a court conflict. Even an innocent board member can lose money and time in a lawsuit. Directors and officers insurance covers the legal fees for board members should they ever be summoned to court. |
 |
Our Residents Were Expecting the Whole Clubhouse to be Replaced, not 60% Too often, community associations are only insured for the market value or the depreciated value of their property, not the full replacement value. A-20-year-old clubhouse may cost $150,000 to replace, but if it is only insured for $90,000, the balance has to be paid by the association. Should this happen, residents may have to be assessed, and will blame the trustees for inadequate coverage. |
