If the association is responsible for providing flood insurance according to the by laws then I would say yes you have to reimburse him. What I would do is let him know that he will be reimbursed as soon as he is current on all assessments and let him know that a lien will be forth coming. Make sure you have it all in writing and follow the appropriate notice procedures.

Sorry, but I do not agree with Leslie, UNLESS the assn told the member he was resp. for flood ins. Otherwise, IMO the assn is not resp. for reimbursing him. He should have told the mort co he was covered by the HOA's policy. Perhaps he can get a reimb. from the mort co.

I agree with Mary. Did the mortgage company add it because the owner told them the situation with the HOA flood insurance? The mortgage company will need a document from the HOA regarding their coverage in order to have it removed. 
 
On another note, this HOA board and their PM company need to really put more effort into collections.

In Florida if you have a mortgage, you must carry flood insurance. If you don't the mortgage co. will attach to your monthly payment.

I had to get additional flood coverage as well.This is in addition to what the Condo Assoc., has, however, I talked to our Treas., and she said that she will send me what i need and the flood cov + the Master policy is more than enough coverage....My mortgage is with Bank of America...they are doing it to everyone!!! So I will be resubmitting the info and hopefully cancel the newly added policy for a refund.

This is a common problem amongst condominium associations. I recently spoke to one of my friends who refused to pay her dues because the association wasn't maintaining the community as promised. I explained to her, how do you expect the association to maintain the community when you aren't paying your dues? Maybe if everyone did pay their dues, upkeep would continue. To me, more concerning then having to reimburse unit owners, is the amount of delinquent accounts. My name is Tasia Apostolou, I’m with Assessment Recovery Partners. We assist condominium association in recovering delinquent assessment accounts. We also providing funding for the association and fund collection cost. I’d love to help. My number is 727-865-7777. Please feel free to call me with any question. Even if you are not interested in our services I may be able to give you some advice.

Tasia, 
 
 
 
Not paying assessments when a member feels the board is not living up to their resp. seems to be a common occurrence, albeit a very stupid one. It amazes me that these people do not understand what the consequences of not paying assessments is -- the worst case scenario being foreclosure. If a member is unhappy with the performance of the BOD they need to speak to the board members. Withholding payment of assessments is the worst thing they can do!!

We purchased a unit as a short sale. The previous owner was in arrears on dues and insurance fees. In order to close we had to pay all of his outstanding fees to the association. The association had put in an insurance claim after a hurricane a year or so before we closed. The previous owner was up to date on dues at the time of the storms for which the claim was collected. The management company put in the claim but did not notify all homeowners of the collected claim. The repairs were never done to the unit we purchased. We obtained an assignment of rights from the previous owner. My question is can a management company collect insurance money and then put it in general funds and not do repairs? We were told they were not done because he was in arrears by the time the money was collected. We have now brought his account up to date and feel we should be credited for the $17,000 in insurance money that was collected on the unit . We have had to do a lot of repairs. The homeowners association denied our requests. Any advice on how to proceed?

Why didn't you check this out b/4 you purchased the unit.  
 
 
 
The mgmt co is not to be faulted for not doing the necessary repairs. It's up to the BOD to tell the mgmt co what they want to do. You may want to check your state condo statutes to see if thee are any requirements for use of insurance claim monies. Frankly I doubt you will find this addressed in state law. Do withhold necessary repairs to a unit because the owner is delinquent is certainly not a proper procedure to follow, IMO. 
 
 
 
You may want to contact an attorney to see if you have any claims against the assn. Good luck!!

How many people are stupid enough to pay annual premiums equivalent to 10-25% of the value of their home? Most wealthy people didn't get wealthy by being that stupid! From the insurance company perspective, few people would buy the policies and worse yet, covered individuals would actually expect their claims to be paid when the very likely event occurred! That's not a good a business model.