IT’S A NECESSITY TO CARRY THE RIGHT INSURANCE

By Jan Bergemann

Published May 18, 2018

 

If the association doesn’t carry necessary insurance it can create financial havoc among its members.

 

Over the years, especially after hurricanes, many owners lost their homes because the association didn’t have the right insurance policies – or carried insurance policies with very high deductibles – without having reserves to cover the deductibles.

 

Owners should never forget: THEIR HOMES ARE COLLATERAL FOR ANY DEBT THE ASSOCIATION OCCURS!

 

But not only hurricanes create financial havoc because lack of the right insurance policy – so can scams and embezzlement.

 

In recent times we have seen many reports of scams and embezzlement by board members and community association managers. Because of it we fought in 2013 to add a provision to HB 7119 requiring all associations to carry insurance or a fidelity bond.

 

See: FS718.111(11)(h) + FS720.3033(5) The association shall maintain insurance or a fidelity bond for all persons who control or disburse funds of the association……….

 

But, as we have seen in quite a few recent cases, boards fail to follow the law and the damages still are being covered by the membership. Another reason why “easy” enforcement of the law is so important for the welfare of the owners.

 

Shouldn’t our legislators see the necessity to ensure enforcement of the laws they are enacting year for year?


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Jan Bergemann Jan Bergemann is president of Cyber Citizens For Justice, Florida 's largest state-wide property owners' advocacy group. CCFJ works on legislation to help owners living in community  

associations. He moved to Florida in 1995 - hoping to retire. He moved into a HOA, where the developer cheated the homeowners and used the association dues for his own purposes. End of retirement!

 

CCFJ was born in the year 2000, when some owners met in Tallahassee - finding out that power is only in numbers. Bergemann was a member of Governor Jeb Bush's HOA Task force in 2003/2004.

 

The organization has two websites to inform interested Florida homeowners and condo owners:

News Website: http://www.ccfj.net/.

Educational Website: http://www.ccfjfoundation.net/.

   
We think that only owners can really represent owners, since all service providers surely have a different interest! We are trying to create owner-friendly laws, but the best laws are useless without enforcement. And enforcement is totally lacking in Florida !


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