What Action Should The HOA Board Take On Maintenance & Insurance?

Maintenance and insurance issues in the homeowners association may cause confusion among HOA board members.  The task to differentiate between areas covered under the insurance policy and items that are considered maintenance requires understanding the responsibilities of each.  The community website informs residents of many topics in the homeowners association but experience is often needed to distinguish between insurance and maintenance.

 

 

Maintenance is responsible for certain areas of the homeowners association such as the streets, roofs, and landscaping.  The first step in establishing what is covered under maintenance in the HOA is to identify the responsibilities as outlined in the governing documents.  The governing documents, or CC&R’s, clarify the responsibilities and limitations of maintenance.

 

For instance, maintenance covers replacing roofs due to deterioration but that coverage has boundaries.  In the CC&R’s, there’s a portion that explains what maintenance accounts for and also what insurance is supposed to cover.  HOA board members must act according to the governing documents and keep maintenance issues separate from items covered by insurance.  Without the community website, would you know where insurance coverage begins?

 

 

It’s not unusual for board members with limited experience to be unaware how to handle maintenance and insurance matters.  In regard to insurance, board members should confirm the homeowners association has adequate coverage that meets or exceeds the minimum requirement.  Typically, this requirement is found in the bylaws and includes details about the insurance policy intended for the association.

 

The key is for board members to realize the importance of insurance and the time when it is necessary.  Maintenance is meant to keep the homeowners association up-to-date where insurance is meant for times where part of a building is destroyed.  Ideal action for the HOA board is to consult with a professional about insurance coverage that complies with the CC&R’s.