Fill out this form to email this article to a friend
Community Living
Insurance protection against special assessments
By RICHARD WHITE
Published December 31, 2005
Q. Please explain loss-assessment insurance.
A. Loss assessment is insurance coverage that protects owners against a special assessment for loss or damage caused by storms. Unit owners obtain their own policies, part of their homeowners insurance. If the association charges a special assessment for hurricane damage, the loss-assessment insurance covers it.
Typically policies are for $1,000, but I recommend homeowners increase that to $5,000 or $10,000 or even more, because the additional coverage is very inexpensive. Some insurance companies impose a deductible on loss-assessment payments.
Plan requires more study
Q. Our condo community consists of three separate associations and a master association. Because of rising fuel costs, the master board wants to install solar panels to help heat the master pool. We'd have to borrow the money, and all three associations would have to approve. Our association thinks the mortgage debt would place a lien on our property and add interest expense to the cost of the solar system. The master board thinks the fuel savings will pay the debt service. Our board wants to either pay our share out of operating funds or initiate a onetime special assessment. Can our board reject the proposal to take on this debt and simply pay our share in cash? Our property would remain lien-free, but what about our vested interest in the common elements if the other two associations approve the loan?
A. There's more here than you asked. The addition of solar panels may be considered a capital improvement that must be approved by members. A loan on a capital improvement also requires member approval in most situations. Solar heat alone may not keep the pool as warm as you'd like, and you'll still use some electricity. Get your association lawyer involved in clarifying the member approvals that are necessary.
Limits on motion-making
Q. During a board meeting can a unit owner make a motion that is seconded by a board member and then voted on by the board? Where in the agenda would this be appropriate?
A. No. Only directors can make motions and only on topics listed on the agenda. Members can attend board meetings and make brief remarks on agenda items only. A member who wants to present a matter for a vote must write the board before the meeting asking that the topic be placed on the agenda. One of the directors must offer the motion.
- Richard White is a licensed community associations manager. Write to him c/o Community Living, St. Petersburg Times, P.O. Box 1121, St. Petersburg, FL 33731. Sorry, he can't take phone calls or provide personal replies by mail, but you can e-mail him at CAMquestions@cfl.rr.com Please include your name and city. Questions should concern association operations; legal opinions cannot be offered. For specific legal advice, contact an association attorney.
Readers may call the state Division of Condominiums Bureau of Customer Service at toll-free 1-800-226-9101 with questions or requests for materials. Access the Bureau of Condominiums Web site at www.state.fl.us/dbpr/lsc/index.shtml or write to Bureau of Customer Service, 1940 N Monroe St., Northwood Centre, Tallahassee, FL 32399-1032.
Please note that this office provides no information about homeowners' associations. The state has no bureau or department covering those associations.
[Last modified December 30, 2005, 08:46:05]
Share your thoughts on this story
|
News
Fifty years ago, they were screwed-up kids sent to the Florida School for Boys to be straightened out. But now they are screwed-up men, scarred by the whippings they endured. Read the story and see a video and portrait gallery.
Print
Email story
Comment
Email editor
