Many owners may receive notice from their Bank or Mortgage Company each year requesting a certificate of insurance to provide proof of coverage. Upon contacting the management company, many of you have been charged a small fee for obtaining this information, and are upset and/or confused by this process.
State laws pertaining to condominiums and most project legal documents creating condominiums require the association to carry a master insurance policy covering the entire project including the individual units. This is the only approach to insurance that makes any sense in a high rise project, and in most lateral projects it also makes sense because of the interrelationship of individual condominium units and the project’s common areas. In planned unit developments, the advisability of having a master policy depends to some extent on the type of construction. With attached townhouses or row houses, it is possible that a master policy is preferable to individual policies covering each dwelling.
Q: Does South Carolina have similar laws as North Carolina when it comes to HOAs?
A reader writes, “We have been notified that we must apply for FHA approval to provide reverse mortgages for our homeowners. We’ve had FHA approval since 1978. However, we must now begin the process all over. Our master deed contains a ‘right of first refusal’ covenant, which, according to our lender, FHA won’t approve. Has anyone encountered this…