An HOA CAUTIONARY TALE – Insurance And Going Around The Board

An HOA CAUTIONARY TALE – Insurance And Going Around The Board

Below is a helpful tip from the Davis-Stirling.com Newsletter by ADAMS | STIRLING PLC regarding an unhappy owner and insurance . . .

Shawna Pina was unhappy that the board did not comply with demands that her worn roof shingles be replaced.

Contacted Insurance. Even though her roof was not leaking, she went around the board, contacted the association’s insurer, and complained that the board was negligently maintaining her roof. The insurance company subsequently canceled the association’s policy.

New Policy Required. The board searched for new insurance and found only one company willing to provide a quote–with a cost increase of 397%. The association sued Pina. She defended by claiming her conduct was protected by her right to free speech. The court disagreed and ruled in favor of the association. Pina appealed.

Actions Not Protected. In an unpublished case, the court of appeal observed that Pina was attempting to force the board to capitulate to her demands to further her own personal interests. The court concluded Pina’s actions were not protected and affirmed the trial court’s ruling in favor of the association. (Bear Valley Springs Condo. Ass’n v. Pina.)

Comment: It should be obvious that members cannot interfere with the association’s vendors. This includes threatening or disrupting relations with insurance carriers, landscapers, security companies, etc. By the same token, boards must be diligent in carrying out their duties to maintain the common areas. As a result of the collapse of Champlain Towers, insurers and lenders are much more sensitive to deferred maintenance in associations.


DISCLAIMER. The Davis-Stirling.com Newsletter by ADAMS | STIRLING PLC provides commentary only, not legal advice. For legal advice, you’ll need to hire legal counsel.  You can hire ADAMS | STIRLING PLC; Keep in mind they are considered corporate counsel to associations only.