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Question for the Money Doctors

Question submitted on May 30, 2014.

Question

Can a Home Owners Association for a Condo Group Refuse to Care any type of Insurance on the Condo Community ? Im speaking of property damage Ins. Most Assoc. have a master policy for outside of unit coverage . Mine refuses to carry any Insurance on the Condo's. Is this legal ??

Answer

It depends on the Covenants, Conditions and Restrictions (CC&Rs) of the Condo Association, whether the association is a true condo or a homeowners' association, and the laws of the state that the association is organized in. You should consult your organization's documents. If the association is indeed not required to obtain coverage for common areas, you can get an endorsement to your policy to cover special assessments levied due to uninsured common area losses. To sort through what the association is required to do, you may need to consult an attorney.


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