Question:
Question regarding an insurance rider to the HOA master insurance policy. Recently twenty-eight home owners, located on five on street/shared driveways within a Master Planned Community Subdivision out of over three thousand lots have been notified, after twenty years for some ownership, that they are now responsible to pay for street maintenance and repairs.
Maintenance has been paid for out of the HOA general operating fund for twenty years. There have never been any repairs.
Question can an insurance rider be added the HOA Master Insurance policy to cover future repair issues if they were to occur, such as sink hole, sewer line issue crossing four properties, reconstruction or replacement of the small one lane paved street allowing access to four individual driveways? What would be the estimated cost?? Maybe as a percentage of the current Master Policy which is $6,000 per year.
If we can have the HOA add the rider and then have them continue to pay for maintenance every five to seven years out of the general operating fund the homeowners can be protected.
Or can you direct me to where I can get an insurance rider quote?
– Joe
Answer:
Hi Joe,
You may contact HOA’s master insurance policy provider to verify whether they have such a rider available and how much it might cost. Moreover, it may be wise to review the current insurance policy to see what is covered and what remaining coverage you might need. It’s also best to consult an insurance expert or a lawyer who specializes in HOA-related concerns to provide guidance. You can find a lawyer or insurance vendor through our online directory: https://www.hoamanagement.com/
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
