HOA about to lose master insurance. What does that mean to me as one of the condo owners?

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If anything goes wrong or anyone is injured in your “common areas”, you and the rest of the owners are personally liable for any associated costs. So the HOA better find a new insurance company or you better hope that nobody gets injured on the property and sues the HOA or nothing breaks that would have been covered by insurance (new roof for the social center, fire in a common area, broken pipe, etc.).

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Could be, but the insurance is set to expire in one week so it sounds like the responsive ownwrs needs to pool together the money as an immediate solution

I’m not sure it’s legal for them to not have master insurance, someone has to be responsible for common areas

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You should probably try to get out ASAP based on your responses.

In the meantime you should get personal Umbrella insurance. If do at least $3M. It is not very expensive. They also pay your legal expenses since they are on the hook for your first few million. Won't help you sell, but protects you personally.

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It means that the association could impose a special assessment to cover a loss that would have been insured. Basically you become personally responsible for your portion of the associations liability.

Yes, an injury or property damage caused by the association or to the common areas. You should make sure that your condo owners insurance covers for fire as sometimes that is covered by the associations master policy. What if the roof is damaged by a storm? Or someone drowns because the pool gate didn’t close all the way or a sprinkler breaks and a unit is flooded?

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I would talk to a lawyer. If you’re thinking to sell, your realtor may be able to recommend a good one. You may be able to compel them to maintain the HOA master policy. Really would not want to take the risk of being completely uninsured. If there’s a major storm with damage to roof or other common areas (esp. if water damage) the loss can be massive and no one person is going to feel accountable to slow/stop the loss because the costs are spread across individuals. What a mess.

Are you in a mixed-use building or the entire building is your condos? Sometimes, in a mixed-use situation, there will be a “Master Association” which is made up of the component parts of the building like residences, restaurants, etc who are responsible for master common elements and a master insurance plan.

May or may not be in your case, just throwing that out as it can have a different meaning.

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