Gulfshore Insurance > Gulfshore Blog > Condo Associations

For as long as we can remember, residential condominiums were required to maintain a fidelity bond or insurance in an amount at least equal to the total funds in the control of the board and/or their management agent. That requirement has always applied only to residential condominiums…until now!

House Bill 7119, recently signed by the Governor, extends this requirement to homeowners associations effective July 1, 2013. The new statute is as follows:

  • 720.3033(5) The association shall maintain insurance or a fidelity bond for all persons who control or disburse funds of the association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. As used in this subsection, the term “persons who control or disburse funds of the association” includes, but is not limited to, persons authorized to sign checks on behalf of the association, and the president, secretary, and treasurer of the association. The association shall bear the cost of any insurance or bond. If annually approved by a majority of the voting interests present at a properly called meeting of the association, an association may waive the requirement of obtaining an insurance policy or fidelity bond for all persons who control or disburse funds of the association.

A few observations are in order here:

  • Nothing has changed relating to residential condominiums.
  • Non-residential condominiums are still not subject to the bond requirement.
  • Cooperative associations are not subject to the bond requirement.
  • Timeshare associations are not subject to the bond requirement.
  • Homeowners associations can opt out of the requirement as stipulated in the statute.

Gravity–what’s it costing you?
According to recent data, the total annual cost of slip and fall injuries in the United States in over $60 billion annually. There is more involved in preventing a slip and fall accident than just placing the proper signage at a slippery entrance. Property Managers and Board Members should always prepare for the worst and hope for the best. Below is an action plan to help you manage slips, trips and falls at your association.  Click here to download a Slip & Fall Checklist to use at your association. Read more

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The central event in the business operation of any community is the meeting of the board of directors. Whether the board meets monthly, quarterly, or somewhere in between, this is where all of the work of the many volunteers and professionals involved in the operation of the community is weighed and the decisions made that affect every member of the community.

Oftentimes, these meetings can feel unproductive or unsuccessful; however, certain practices and preparations can lead to better attended and more effective meetings for your association.

In order to make the most of the time available and get the most out of your meeting, everyone involved needs to be on the same page and focused on the business at hand. Pre-planning and proper preparation of meeting materials will help keep everyone moving forward. Read more

water-damageDid you know that water damage is one of the most commonly cited claims on home insurance? This should not come as a total surprise considering the many possible causes of water damage – heavy rain, bursting of pipes, and the bathtub accidentally overflowing. After making sure that you and those you live with are safely out of harm’s way, here are five important steps you should take if you experience water damage in your home. Read more

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Insurance analysts predict modest rate increases for property and casualty risks will extend into 2013, as the overall economic environment is not expected to change dramatically in the coming year. Read more

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