Using Insurance Funds for Other Purposes

Hi,

According to the Washington Uniform Common Interest Ownership Act Section 64.90.470(5), the proceeds of insurance must be first disbursed for the repair or replacement of the damaged property. The association (along with lienholders and the unit owners) is not entitled to receive payment of any portion of the proceeds unless there is a surplus after completing the property repairs or replacement, or the community is terminated. Kindly also check the governing documents to verify whether the HOA is allowed to use insurance funds for purposes other than repairs. For further guidance, kindly consult a lawyer.