We recently started a D&O based group on LinkedIn with our very own D&O expert, Joel Meskin! We are thrilled with the activity and all of the comments we have received from our followers! If you have any D&O related questions – make sure to check it out! You can get to the site by clicking on this link.
One topic that caused a lot of intention was as follows: My friend and colleague, a community association banking and management expert, has proposed a discussion regarding the enforcement by management companies of CC&R requirements that all condo unit owners obtain an HO6 policy (a homeowner policy to protect the unit owner inside the unit for contents, betterment’s and improvements and liability that is not covered within the condo’s master policy). Since this group is focusing on directors and officers, the ultimate association managers, I have taken the liberty to focus the discussion in that direction, but invite management companies to share their thoughts and opinions on what they do. Those of us involved on the insurance side of the community association industry are quite aware of the “critical” problem that many condo owners do not have a policy either because they are not forced to by a lender (who is interested in most cases about the master policy) or they do not realize that the master policy does not cover the inside of their units.
The impact on this for an association is significant, especially if there is a large fire or catastrophic loss where the building is totaled. If half of the owners do not have an HO6 policy, they may be left with a shell, which in turn will impact the value of the association in general. The shame is that the HO6 is one of the least expensive insurance products on the market.
I invite people to share their thoughts, experiences, horror stories or suggestions.
Please comment on this blog to continue the discussion, or join our LinkedIn group to see what others have to say!