Why Appropriate Insurance Coverage Can Help Your Association Clients Avoid Costly Litigation
The increasing frequency and intensity of natural disasters—from wildfires to hurricanes—makes the procurement of appropriate insurance coverage more important than ever for community associations. If your clients don’t understand their responsibilities in this area under the governing documents and applicable state laws, they could end up in costly litigation.
A North Carolina condo association and its board members recently learned this lesson the hard way after it lost a building to fire (Grooms Property Management, Inc. v. Muirfield Condominium Association).
“The association did a lot wrong,” says Zach Wilson, an attorney with Law Firm Carolinas who focuses on community association law. “They didn’t really know what they had to cover and to what extent—it was an unknown unknown. Then when disaster hit, the insurance suddenly became very relevant, and their lack of understanding came to the forefront.”
Read our new article to discover how this condo association came to be held legally responsible for the cost of repairs following the building destruction and find out what your association clients can do to avoid this type of costly litigation.
Read the full article now: Association’s Allocation of Insurance Proceeds Leads to Lawsuit Loss