Archive for November, 2011
Read about SB 167 and its relation to changes in HOA insurance.
“Given the great interdependence that exists between owners in common interest ownership arrangements and the complexity and difficulty experienced in the insurance process, it has been obvious for a long time that significant change was needed.
Owners seeking direction and advice in the search for proper coverage found mainly confusion. What exactly could the association policy be relied on to cover in the event of a loss? What coverage should the owners purchase on a unit owners’ policy to assure restoration of damages in tandem with the association policy? How could gaps in coverage be avoided?
These challenges have been sizable for insurance marketers, underwriters, claim handlers and especially owners. Attempts to interpret and rely on association documents and policy contracts for guidance have only generated more questions and debate. Some owners who have relied on information obtained from their association, insurance professionals and others to make insurance decisions have unfortunately discovered at claim time that things didn’t work out as they expected.”
Read about HB 104 and its effects on the fee limits that can be charged to lien payoffs.
“HB 104 is the result of a several-year discussion and compromise between the LAC and the title industry. Spearheaded by Curt Webb, a Utah legislator and the owner of a title company, the title industry has for a long time sought a legislative solution to the problem of obtaining payoffs on community association liens. In short, it is sometimes very difficult to figure out who to ask for payoff information and to actually get that information in a timely fashion.
Community associations managed professionally or properly self-managed are not the source of the problem. They generally are easily identified and keep good records. The real problem arises from smaller associations that are not professionally managed. Title companies are sometimes left to knock on doors or cold-call owners to try to find out who is on the board and who might be able to provide some information on assessments.
In response to this problem and as part of a larger compromise involving UCIOA Light and a fairly dramatic increase in the priority of Association liens, HB 104 was born.”