Santa Clarita Property Management: Insurance for HOA

Are you a member of a Homeowners Association (HOA)? Are you unsure of the type of insurance that the members of the Homeowner’s Association carry, or should carry? Worry no more–here at National Property Management Group, a property management group serving Santa Clarita, we want to help you to understand what insurance you should carry as a member of a Homeowners Association!

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You should always call on the Homeowners Association’s insurance provider if you are considering purchasing your own policy, or when you are reducing or increasing the deductible or coverage. In order to protect your interests in the actual association, the following types of insurance should be presently held by the association (the insurance requirements will vary according to the type of property and the specific legal documents):

  • Property damage policies that cover fire
  • General liability insurance for common areas that may cause injuries
  • Errors and Omissions/Directors and Officers – this is to cover any questionable business judgments that are made by the board
  • Workers compensation, which will protect from any financial liability that is caused by an injury to any workers
  • Fidelity bond which protects against the theft of any of the money held by the association
  • Earthquake insurance, which is options but important if you are in an area prone to earthquakes
  • Flood insurance, which is also optional

There are some HOAs that will not require any type of workers compensation policies, since they may not be paying any employees; this typically applies to any smaller homeowner associations.

If you are unsure of the type of insurance that your association should have, make sure that you talk with your property manager. The property manager should be able to help you understand the ins and outs of what is needed, which will ensure that everything is properly covered in case an unforeseen incident occurs.

If you have more questions about insurance for your Homeowners Association in Santa Clarita, contact National Property Management Group today for more information.

National Property Management Group
28009 Smyth Drive
Valencia, CA 91355
661-295-5966

Santa Clarita Property Management: Amending the CC&Rs

If you are a member of a homeowner’s association in Santa Clarita, you may have heard the term CC&R thrown around from time to time. CC&R, refers to the Covenants, Conditions & Restrictions, which are essentially the specific governing documents that are responsible for dictating how a homeowners association operate and what specific rules that owners and members must obey. HOA CC&rs Santa Clarita

If you are seeking an amendment for the CC&Rs, we here at National Property Management Group–a property management company serving Santa Clarita– have put together a short list of the specific requirements that must be met:

  • You must have requisite approval from the percentage of owners that is outlined by the HOA’s governing documents.
  • You must receive a written certification of approval by one of the officers of the HOA association.
  • Recording of the amendment.

The specific approval for the amendment has to be determined by evaluating the specific set of the CC&Rs. The majority of the documents will require a super-majority approval of the owners, which is usually 67 percent of the HOAs voting power. If the CC&Rs have no specification regarding the required percentage from owner approval for the amendment, then according to Civil Code 1355, the amendment is able to be approved if agreed upon with a majority vote from all of the members.

If there are several different classes of HOA membership, it is not very common for the CC&Rs to require a super-majority of each of the class members. Additionally, there are certain types of amendments that may require an approval from the first mortgagees, which is the banks that hold the actual mortgages of the residences or the units in a particular association, or in some cases in the city.

The amendments that will require an approval from the first mortgagees will be outlined in the CC&Rs of the HOA and are usually limited to any amendment that may adversely impact the overall security interest of the particular mortgagee.

Aspects such as the voting process and determining if the amendment is implemented will be different from HOA to HOA. Understanding these factors can make the process of amending the CC&Rs for your Santa Clarita homeowners association much simpler and more efficient. If you are interested in learning more about amending the CC&R’s or hiring National Property Management group for Santa Clarita property management, contact National Property Management Group today!

National Property Management Group
28009 Smyth Drive
Valencia, CA 91355
661-295-5966