Is it appropriate for a rental association to “self-insure” and terminate their present-day insurance? Also: Can a board steer clear of naming a director to an empty posture?
STUART, Fla. – Question: My cooperative dock association board of directors is discovering the ability to “self-insure” by cancelling the wind coverage on the docks and increasing the reserves. The existing windstorm insurance is virtually fifty percent of the once-a-year price range and is efficiently ineffective owing to the deductible. The board thinks they can do this by amending the governing paperwork to eliminate the insurance prerequisite. Can this be finished?
Reply: Almost certainly not. Though the governing paperwork can be improved by an modification, the paperwork can’t be improved to circumvent the prerequisite of the Cooperative Act. Precisely, F.S. 719.304(three) which requires a cooperative association to insure all association home. In a cooperative, the association “owns” the docks and