Legal Question in Insurance Law in Kentucky

I live in a small lakeside sub-division that has a homeowners association. When the sub-division was drawn up in the 1960�s a boat ramp and small parking area was set aside on the plat. The Army Corp of Engineers later prohibited this private boat ramp from being built on their property. Some property owners think that this property is now owned by the Association even though there is no deed nor have we ever paid property taxes. I do not understand how property can be owned with no deed or tax bill. That is clarification number one I need. Also when I was on the BOD of this association I asked at a general meeting if I could see our insurance policy and was told by our treasurer who happens to also be our insurance agent if I could see our insurance property. He said that he did not have the policy with him. At that same meeting I was elected President and one of the first things I did in the following weeks was ask for a copy of the insurance policy for my review. I was told by the treasurer that it was not a presidential document and the treasurer was not obligated to make the policy available. After much heated argument I finally got to see the policy nine months after I originally asked to see it and a few weeks after its renewal. What I received was not a Homeowners Association Insurance policy with D&O protection, protection from embezzlement, or anything a NPO would need. Our policy was a Commercial Liability Insurance policy that listed thirty �townhouses� as property that was protected. There are more than thirty individually owned residential buildings in our association. Is there reason or cause for concern here as far as being properly insured and do we need insurance at all since I am convinced the association owns no property?


Asked on 12/19/11, 7:42 pm

2 Answer from Attorneys
Andrea Welker Welker Law Office

There's no way I can really answer these questions without a thorough review of the documents and a title search. In many cases, HOAs own a portion of the property and are responsible for managing that property, such as the roof or the landscaping, for connected properties like townhouses, or common facilities like gyms or rec rooms. In which case, insurance is a must.

Schedule an appointment with an attorney and take all of your documents. This is a real estate matter, not insurance law matter, so find an attorney practicing real estate law.

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Answered on 12/20/11, 6:54 am


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