Get 2 months of free community web site hosting from Community123.com!
Friday, October 18, 2019
Get 2 months of free community web site hosting from Community123.com!
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Asking HO Ins. to contribute to Reserves
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
CS
(California)

Posts:2


08/22/2006 5:27 AM  
Recently discussed at an assoiciation meeting-was the idea of asking our individual Homeowner Insurance Companies to contribute to our depleting Reserves in the tune of $3000. We're in CA, our community has really gone down and our reserves some how vanished? One homeowner commented that she had called her insurance and that they would in fact cover the assessment. Another said her insurance co. said the reserves would have to be completely deminished. Is this legit? And what about the homeowners' insurance co.'s that won't cover, could the homeowner be liable? Could you give me more information on this idea of having the Homeowner's Insurance Co. contributing to HOA Reserves. Thanks.
hoatalk
(California)

Posts:573


08/22/2006 5:32 AM  
This will vary for each homeowner and their insurance policy. They will all have various terms and deductables. The bottom line: If the HOA makes an assessment then each member is liable to pay, regardless of what their insurance covers.

HOATalk.com, A free service of Community123.com
Provider of Upscale Community Websites
CLICK HERE to get a FREE trial community website
*See legal notice below (end of page) or go to www.hoatalk.com/legal
JosephW
(Michigan)

Posts:882


08/22/2006 10:07 AM  
Insurance companies don't contribute to reserve accounts for associations. I think what they were talking about is called "loss assessment coverage". This coverage is available to individual owners (not the association). If the association has a loss, that is partially covered by the association's insurance (repairs exceed insurance limit), and an assessment is passed to make up the shortfall, "Loss assessment coverage" will pick up the owner's (if they've elected to add that endorsement) share of the assessment, up to the limit of the coverage.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net

*See legal notice below (end of page) or go to www.hoatalk.com/legal
CS
(California)

Posts:2


08/22/2006 11:44 PM  
Thanks HOAtalk and Joe, very logical. So, because they had an assessment last year (according to the amount allowed by the CC&Rs) could a "Loss assessment coverage" claim be filed for a past assessment? Or is there a time frame that restricts the last idea and only applies to "new" or "future" assessments? I will as well check the policy. Wow, you guys are good. BTW, our current reserves are 2% funded.
Thanks again.
JosephW
(Michigan)

Posts:882


08/23/2006 6:55 AM  
It would depend on the wording in the individual owner's policy, but as a rule, "loss assessment" coverage only kicks in if there is an assessment specifically earmarked to make up for a shortfall in insurance coverage, not just a budget shortfall. For example, if the association submitted a claim where the damage total was $150,000, but the insurance only covered $100,000, and the association assessed the owners for the $50,000 balance, then those owners who had "loss assessment" coverage could submit a claim for their share of that assessment, up to the limits of their personal coverage.

I really don't know if there's a time limit, you would have to talk to your individual agent.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net

*See legal notice below (end of page) or go to www.hoatalk.com/legal
Please login to post a reply (click Member Login on the menu).
Forums > Homeowner Association > HOA Discussions > Asking HO Ins. to contribute to Reserves



Get 2 months of free community web site hosting from Community123.com!



News Articles Provided by: Community Associations Network
News, articles and blogs about condos/HOA's

Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com.  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
HindmanSanchez Legal Notice:  (For messages posted by HindmanSanchez) This message has been prepared by HindmanSanchez for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Members of HOATalk.com should not act on this information without seeking professional counsel. Please do not send us confidential information unless you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact an attorney in our firm. Our attorneys are licensed to practice law in the state of Colorado only.

Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement