Any new position requires time to adjust to the learning curve of the new responsibilities. Starting a new position in serving on the board of your Home Owner’s Association is no exception. It’s important to be aware of the implications that a mistake could have on your HOA and its members. By protecting yourself and your association with a comprehensive and custom tailored Ventura HOA Insurance package you and your board members will be less likely to succumb to any mistake.
Mistake #1: Not understanding how the association works
Learn the rules and regulations of your particular association to avoid putting your firm or yourself at risk for litigation. David Regenbaum, founder and CEO of Association Management, Inc. stated to a HOA Leader, “New board members need to really learn about the association. They should go to a course or get their managing agent to give them an overview of their roles and responsibilities and the management plan in existence at the association.” Following these rules can prevent miscommunication and legal mishaps.
Mistake #2: Overstepping your bounds
As a board member, it is your responsibility to oversee and uphold the community in which you reside. If the HOA’s governing documents do not specify your legal right to interact within the community in a certain way, it is unlawful to move forward. While knowing the HOA’s governing principles it is also best to proceed any interaction with clear communication to understand how to proceed. In doing so your duty as a board member will be not only be lawful but beneficial to your community.
Mistake #3: Only focusing on short-term financials
Your association’s financial records should be taken very seriously. By focusing on your short term logistics of your financial investments you can achieve strength in your long term financials. It’s wise to invest in a person who can keep your financial statements accurate. This will ensure that your money is handled effectively.
Mistake #4: Switching vendors without approval
Remember that when you are on a board of directors for the HOA the opinions of the other members are important to the success of your community. If you hastily switch vendors who were contracted by another member, you could expose your HOA to lawsuits and cause a rift between the other members. Make decisions rationally by ensuring everyone, or the majority, is on board with the decision; pun intended.
Mistake #5: Straying from the character of the association
The existing lifestyle that the association provides should not be compromised negatively due to a new incoming board member. The integrity of the association and its members should be upheld at all times. Many times newbies can influence the whole. It is imperative to make sure that the influence is in line with the board’s values and ethics.
At Scott Litman Insurance Agency, we strive to protect HOA’s like yours. We specialize in reviewing current insurance policies to determine whether or not vital components and limits are missing, many of which violate CC&R’s requirements. From Employee Dishonesty coverage to Director and Officer liability, we are experts in navigating the insurance policies you need to achieve protection and peace of mind. For more information about our products, we invite you to contact us today at (855) 999-4505, or fill out our online form.