Condo board members are elected by the residents of the condominium. However, as elected officials, the board members face risks making condo directors and officers insurance policy a necessary part of the condo association’s budget. These common problems face condo association boards.
Condo boards frequently face a lack of interest from homeowners willing to attend meetings let alone serve on the board. Often, board members end up serving for several years due to a lack of interest from residents. This can put them at risk for errors, omissions and negligence claims over a longer period of time.
Condo associations often face problems with generational gaps in the residents. Elderly people may have lived in the condo for decades, yet some units are now occupied by younger residents. There is often a disparity in needs and desires from different generations creating a potential problem for the board.
The board members may be on the receiving end of harassment for sending out emails and letters to residents for failure to pay or dispute resolution. Residents may feel the board member is the one in the wrong. The research found on www.kdisonline.com lists harassment, wrongful foreclosure, and discrimination as common exposures for board members.
The association should have condo directors and officers insurance to protect their volunteers. Having the protection helps build confidence and hopefully garner more interest in the board.