Despite being a well-respected financier, a professional who even contributed to launching the Nasdaq stock market, and was a part of the National Association of Securities Dealers, Bernie Madoff committed fraud on a level that was unheard of. His demeanor and seemingly expert knowledge provided the perfect tool to manipulate his victims. What’s more, Madoff’s existing relationships with investigators and his spotless reputation allowed him to fly under the radar. Jerry Reisman, who met him at the Glen Oaks Country Club in Westbury, New York, said: “He moved in some of the best social circles in New York. He worked the best country clubs. He was utterly charming. He was a master at meeting people and creating this aura. His clients gave their hard earned money to unknowingly Madoff’s Massive Ponzi scheme and fund his lavish lifestyle and criminal activities. People looked at him as a superhero,” as reported by the The Telegraph. Now, even respected hedge funds are battling to defend their legitimacy in the face of extreme mistrust.
Similar to Madoff’s victims, you may think you’re in good hands, but in reality, many insurance agencies use their good reputation to take advantage of their clients. Even worse, potential holes in your insurance policy can devastate an association, bankrupt an HOA, and cause more damage than benefits. While this may seem like just another thing to look into, a faulty insurance package can cost your HOA millions.
Many property managers and board members don’t want to think about insurance. Of course, one might assume that a well-known company has their best interest. However, how do you know if your HOA is properly protected? Are you blindly accepting your policies? Have you considered a second opinion? Just because your policies are already in place does not mean it’s adequately protecting your HOA. Don’t depend on the false sense of security and wait to find out the hard way when your assets are compromised or you find holes in your coverage after an earthquake or a fire.
To protect HOA’s from missing coverages by their current agents who use their public standing and good reputation to their advantage, take the HOA’s money and do not provide sufficient coverages, we regularly evaluate their existing policies. During these policy reviews, we are surprised to find that 90% are missing major coverages (many holes appear to violate the “CC&R”). The missing/inadequate coverages could expose an HOA, Board, and management company to potential lawsuits from Owners. If the right coverages aren’t in place, the HOA would be on the hook for the expenses. With that said, it’s apparent to see why a solid HOA insurance policy is an urgent need.
The scary thing is HOA board members – even management – cannot possibly understand the intricacies of such a specialized industry. At Scott Litman Insurance Agency, we have built our longstanding reputation within Los Angeles and Ventura communities by providing honest, transparent, and timely service for our clients. Give us the opportunity to evaluate your current policy and compare it to CC&R requirements within 10 minutes, and we’ll provide you with the peace of mind you need to really defend your HOA and reduce the chances of lawsuits and exposures. This way, you can ensure your assets are actually protected with the coverage required for your HOA’s safety. If you don’t have the time to spare, we will happily provide a side-by-side comparison and highlight the sections of concern at your convenience. For more information about the products you need to be completely secured, contact us today at (855) 999-4505 or fill out our online form.