Condo Association Management Blog

If you governing documents state that owners must carry insurance you can enforce it. You can modify your CC&Rs by going through a standard process. 
 
My questions would be why would you want that?

I am on my HOA Board in Colorado and this came up. We found that we could not as it was outside the purview of the HOA.

We linked a requirement for liability insurance to the ownership of a dog via our Rules and Regulations. The Association did NOT want to be the "deep pockets" in the event that an owners' animal bit a person on the property. Low and behold, an owners animal DID bite someone (about two years after the 'rule' was enacted) and the Association did NOT even have to go through the expense of defending a lawsuit. It might be worthwhile for you to consult with an attorney and discuss why this issue is important to you to determine whether your state will permit you to make this change.

Why would a unit owner choose not to have unit owners insurance coverage? It is a minimal cost, covering personal property and in most instances damage to a unit from the studs in. It is equivalent to tenants coverage of a rental unit. Lenders require an HO6 policy to secure financing to purchase or refinance a unit. It seems like a no-brainer to me. I manage a 60 unit complex in MA and have witnessed instances when unit owners insurance coverage has benefited owners in case of fire or water damage.

When I was an insurance agent, I saw a lot of Condo Unit Owners that didn't carry their own insurance. Since no one was "making" them get it, they didn't see the value in spending $400.00 per year to cover their personal belongings, and interior of their unit. When it comes to the liability portion they always say, "it won't happen to me". 
 
 
 
From the Association stand point this is somenthing that would be difficult to track and more difficult to enforce.

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