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Subject: homeowners insurance
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Author Messages
JimA15
(Florida)

Posts:8


11/22/2019 5:50 AM  
in florida do homeowners in a HOA require insurance, by state or federal law
BobB31
(Florida)

Posts:134


11/22/2019 5:59 AM  
Not that I've seen. C&Rs should specify this.
GeorgeS21
(Florida)

Posts:1469


11/22/2019 6:02 AM  
I think I read somewhere that some do ... south Florida if I recall.
GeorgeS21
(Florida)

Posts:1469


11/22/2019 6:03 AM  
And, it was an HOA requirement.
MelissaP1
(Alabama)

Posts:8753


11/22/2019 3:10 PM  
It isn't a HOA requirement for us. It's more like mortgage company would require it. However, I think some people think that the HOA's insurance would cover them when it doesn't. You need your own insurance whether it's homeowners or renters.

Insurance isn't necessarily for your expenses. It's those around you...

Had a resident who did not have homeowner's insurance. A giant tree in their yard fell onto neighbor's house. It crushed their kitchen/dining room area roof. The HOA ONLY paid for the cleanup. The owner homeowner's insurance covered their house damages and then went after the other owner. So the owner with the tree and no homeowner's insurance got a nice bill from their neighbor's insurance... (40K+)… Can you handle such a bill for a neighbor's damage?

Former HOA President
MarkW18
(Florida)

Posts:254


11/22/2019 4:25 PM  
What Melissa is saying essentially is make sure your assessments are on autopay while they're killing you. Gonna make sure the association and your neighbors are not short changed.
GeorgeS21
(Florida)

Posts:1469


11/22/2019 4:29 PM  
Yep - a property owner’s responsibility to share in the cost of maintaining the community doesn’t go away because of a lawsuit.
MelissaP1
(Alabama)

Posts:8753


11/22/2019 4:54 PM  
It also should be noted that a HOA's deductible isn't necessarily an amount like 1K. It's more like a few thousand dollars. Our deductible alone was 20K. Monthly rate was 2.5K. So if you think the HOA should pick up a "claim" it's going to cost everyone.

You not carrying insurance isn't the responsibility of your neighbors/HOA. Your responsibility it to protect your neighbors from your negligence of not carrying it. The HOA having to pay out toward their deductible... Expect them to raise dues or to sue you for that.

Why do you ask about not having Homeowner's insurance?

Former HOA President
GeorgeS21
(Florida)

Posts:1469


11/22/2019 5:33 PM  
If insurance is not required by some entity, there is no negligence, right?
MarkW18
(Florida)

Posts:254


11/22/2019 5:59 PM  
If you live in a detached home, your mortgage company is going to require fire, wind and flood. Depending on where you reside, you may need to carry all three, but always fire. The insurance the HOA carries is to cover the associations responsibility for common areas.

If you live in a condo or townhome, then the HOA (all homeowners) is going to responsible for most all the insurance as far as buildings (because they are owned in common). The homeowners, through a HO-6 policy, are responsible for walls in, meaning your property and all upgrades you may have had installed.

More and more lenders are insisting that homeowners maintain a HO-6 policy as well as having the association's policy on file on an annual basis. They have that right.

A state like California, prone to earthquakes, HOA's can amend their CCR's to require homeowners carry loss assessment coverage to cover the high deductible of an association's earthquake insurance policy.
JohnC46
(South Carolina)

Posts:8867


11/23/2019 7:03 AM  
We are standalone patio homes and our Covenant require one to have homeowners insurance and with the HOA as a co-signee.
NpS
(Pennsylvania)

Posts:3910


11/23/2019 7:58 AM  
Posted By JohnC46 on 11/23/2019 7:03 AM
We are standalone patio homes and our Covenant require one to have homeowners insurance and with the HOA as a co-signee.


Co-signee or co-beneficiary?

Sikubali jukumu. Read all posts at your own risk.
JohnC46
(South Carolina)

Posts:8867


11/23/2019 9:54 AM  
Co-beneficiary. The basic reason is we do not want an owner not repairing/rebuilding to our specifications and/or take the money and run.

We often get a new owner saying his insurance agent says this is illegal/improper. When we do, our attorney sends a letter and that is the end of it.

Our docs call for each owner to send us a copy of their insurance policy but candidly, we do not enforce this so our policy has some holes in it.
JohnC46
(South Carolina)

Posts:8867


11/23/2019 9:54 AM  
Co-beneficiary. The basic reason is we do not want an owner not repairing/rebuilding to our specifications and/or take the money and run.

We often get a new owner saying his insurance agent says this is illegal/improper. When we do, our attorney sends a letter and that is the end of it.

Our docs call for each owner to send us a copy of their insurance policy but candidly, we do not enforce this so our policy has some holes in it.
NpS
(Pennsylvania)

Posts:3910


11/23/2019 11:38 AM  
Posted By JohnC46 on 11/23/2019 9:54 AM
Co-beneficiary. The basic reason is we do not want an owner not repairing/rebuilding to our specifications and/or take the money and run.

We often get a new owner saying his insurance agent says this is illegal/improper. When we do, our attorney sends a letter and that is the end of it.

Our docs call for each owner to send us a copy of their insurance policy but candidly, we do not enforce this so our policy has some holes in it.


I've thought about this issue many times, but was never able to get any traction with my BOD.

Would appreciate any additional details and the actual wording in your docs. Thx.

Sikubali jukumu. Read all posts at your own risk.
JohnC46
(South Carolina)

Posts:8867


11/23/2019 11:50 AM  
Posted By NpS on 11/23/2019 11:38 AM
Posted By JohnC46 on 11/23/2019 9:54 AM
Co-beneficiary. The basic reason is we do not want an owner not repairing/rebuilding to our specifications and/or take the money and run.

We often get a new owner saying his insurance agent says this is illegal/improper. When we do, our attorney sends a letter and that is the end of it.

Our docs call for each owner to send us a copy of their insurance policy but candidly, we do not enforce this so our policy has some holes in it.


I've thought about this issue many times, but was never able to get any traction with my BOD.

Would appreciate any additional details and the actual wording in your docs. Thx.




I believe you would have a hard time getting that through. People will fight you on it. Some will have their insurance agent play lawyer and write a letter to the BOD saying it is illegal. What might be better is to thoroughly go over your docs concerning insurance and see if something along these lines can be found.

While we do not press our owners on it, you can be sure if there was some major damage, the BOD would be on top of it and maybe even have our lawyer sending a letter to "remind" people.

I will look up the exact wording.
NpS
(Pennsylvania)

Posts:3910


11/23/2019 12:01 PM  
Posted By JohnC46 on 11/23/2019 11:50 AM
Posted By NpS on 11/23/2019 11:38 AM
Posted By JohnC46 on 11/23/2019 9:54 AM
Co-beneficiary. The basic reason is we do not want an owner not repairing/rebuilding to our specifications and/or take the money and run.

We often get a new owner saying his insurance agent says this is illegal/improper. When we do, our attorney sends a letter and that is the end of it.

Our docs call for each owner to send us a copy of their insurance policy but candidly, we do not enforce this so our policy has some holes in it.


I've thought about this issue many times, but was never able to get any traction with my BOD.

Would appreciate any additional details and the actual wording in your docs. Thx.


I believe you would have a hard time getting that through. People will fight you on it. Some will have their insurance agent play lawyer and write a letter to the BOD saying it is illegal. What might be better is to thoroughly go over your docs concerning insurance and see if something along these lines can be found.

While we do not press our owners on it, you can be sure if there was some major damage, the BOD would be on top of it and maybe even have our lawyer sending a letter to "remind" people.

I will look up the exact wording.


Scares the hell out of me that someone could take the insurance money, move to another state, and leave us will a pile of burnt out rubble. I'm very motivated to change it. Have looked at our docs - nothing in there - yet.

Like you, not that bothered about people not providing copies of their insurance. More interested in having something in our docs that would give the insurance company pause before they cut the check.

Appreciate whatever you provide. Thx.

Sikubali jukumu. Read all posts at your own risk.
MelissaP1
(Alabama)

Posts:8753


11/23/2019 2:35 PM  
Our CC&R's has it that if your house burns/wiped out, then you are still responsible for rebuilding on that lot. You can't just sell an empty lot. It has to be returned back to original condition. Believe there is a section that covers that scenario in many CC&R's. Kind of buried.

It doesn't say how one affords to make repairs/replacement to that lot. We don't make an owner have insurance. It just isn't a smart decision not to have it.

Former HOA President
JohnC46
(South Carolina)

Posts:8867


11/24/2019 7:59 AM  
NpS

Another roadblock to adding such a Covenant is mortgage holders might have something to say. As ours was in the doces, acceptance of the docs means acceptance of this Covenant.
NpS
(Pennsylvania)

Posts:3910


11/24/2019 8:02 AM  
Posted By MelissaP1 on 11/23/2019 2:35 PM
Our CC&R's has it that if your house burns/wiped out, then you are still responsible for rebuilding on that lot. You can't just sell an empty lot. It has to be returned back to original condition. Believe there is a section that covers that scenario in many CC&R's. Kind of buried.


Wish we had something like that.

Can you provide exact wording? Thx.

Sikubali jukumu. Read all posts at your own risk.
NpS
(Pennsylvania)

Posts:3910


11/24/2019 8:06 AM  
Posted By JohnC46 on 11/24/2019 7:59 AM
NpS

Another roadblock to adding such a Covenant is mortgage holders might have something to say. As ours was in the doces, acceptance of the docs means acceptance of this Covenant.



Agree that it's a roadblock. Then again, I think we can improve on what we have now -- nothing.

I'm guessing that any changes we make won't apply to existing mortgages. Such is life.

We should probably establish an effective date some time in the future that will apply to new mortgages.

Need to explore more, but thanks for the heads up.

Sikubali jukumu. Read all posts at your own risk.
MelissaP1
(Alabama)

Posts:8753


11/24/2019 8:21 AM  
Sorry don't have the exact wording. My documents are in a box in a closet... LOL. However, I don't see why it's not something one can modify into their documents if you plan to make changes. It may be a good thing to ask a lawyer about adding to your CC&R's about what happens in a disaster.

Keep in mind in our HOA the owner owns the lot the house sits on and HOA owns everything else around it. So the selling the lot alone has ramifications to the HOA. Hence why we make it so have to rebuild or the new owner has to rebuild back to original condition. Can't just leave the lot empty.

Former HOA President
BobB31
(Florida)

Posts:134


11/24/2019 12:40 PM  
Here is a link to a screenshot of the article in our C&Rs that is supposed to dictate this. The problem is, the wording is so bad, I have no idea what it is intended to say, and no idea of how it would be enforced. Which probably explains why no attempt to enforce it has ever been attempted, according to people who have lived here for decades.

screenshot
NpS
(Pennsylvania)

Posts:3910


11/24/2019 3:09 PM  
Posted By BobB31 on 11/24/2019 12:40 PM
Here is a link to a screenshot of the article in our C&Rs that is supposed to dictate this. The problem is, the wording is so bad, I have no idea what it is intended to say, and no idea of how it would be enforced. Which probably explains why no attempt to enforce it has ever been attempted, according to people who have lived here for decades.

screenshot



Thx Bob. See what you mean.

Sikubali jukumu. Read all posts at your own risk.
BobB31
(Florida)

Posts:134


11/24/2019 5:48 PM  
Posted By BobB31 on 11/24/2019 12:40 PM
Here is a link to a screenshot of the article in our C&Rs that is supposed to dictate this. The problem is, the wording is so bad, I have no idea what it is intended to say, and no idea of how it would be enforced. Which probably explains why no attempt to enforce it has ever been attempted, according to people who have lived here for decades.

screenshot



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