Monthly Archives: September 2018

5 Misconceptions About HOA Management Associations

HOA management associations are essential to the success of a community that thrives under a Home Owner’s Association. While HOA management is something that is quite common, many homeowners and elected board members believe some even more common misconceptions.

Goodwin & Company is proud to help clear up some of these myths and show your HOA how we can be a helpful partner in the development of your community.

1.  Myth 1: The Management Company is the Association

Many community members mistakenly believe that the management company is the Association. It makes sense that many people would believe this myth, since the management company is the primary point of contact, however, this is not the case.

The management company is an outside entity that is responsible for enforcing and managing the day-to-day operations of the Community Association.

The Association itself is responsible for community governance and decisions about community maintenance and how it should look and run. Even though an Association can manage itself, a management company can help with enforcement of community rules, financial and account organization, and guidance on best practices for how an Association should run.

2.  Myth 2: The Management Company Replaces the Board

Your community management company should really be seen as a partner to the Board. We want your community to run smoothly and be governed effectively. We are in close communication with Board Members and work with them to ensure that, in the end, only the best decisions are made for the community.

Although we do have input and provide guidance, the ultimate decisions are made by your elected Board of Directors.

3.  Myth 3: All Management Companies Are the Same

No two management companies are alike. This is why it is important for an Association Board to do their research, shop around, and truly understand the vision that they have for their community and select a company whose management philosophy aligns with theirs.

At Goodwin & Company, we pride ourselves in the specialization of:

  • General HOA Management
  • Condo Property Management
  • Developer Services
  • Project Coordination
  • Community Finances, and more!

4.  Myth 4: Management Companies Are Hands-Off

Management companies are made to serve as a glue to the order of a community. Many people think that we tend to be hands-off and manage the company from a distance. The truth of the matter is, we are on the front lines addressing homeowner concerns and issues so that the Board can focus on the overall governance of the Association.

We serve as a non-biased party and help with any conflict resolution or community violations that disrupt the wellness of a community. Our management is personalized and caters to making your community the best that it can be.

5.  Myth 5: We Keep Need-To-Know Information Hidden Away

Keeping secrets from community members is something that a reputable management company will never do. In order for a community to work, regulations and rules must be made public to the community. Other information that is available from an association management company includes:

  • Meeting minutes
  • Financial reports
  • Policies
  • Planning documents/ plat maps
  • Newsletters, and more.

Find the Management Company that Your Board Needs with Goodwin & Company

If your Community Association Board still has any questions about how an association management team helps a community, Goodwin & Company is available to help. Contact us today to find out more about our services in your area and our past accomplishments in communities like yours.

D&O Insurance 101

A Community Association management company can help any Board understand the necessities required to protect their community and ensure that it runs smoothly. From emergency insurance to financial protection, a Community Association Board has a lot of responsibilities to consider.

What happens, however, when there is a lawsuit against the Association? How can a Board protect its volunteers?

One often overlooked area of insurance is D&O insurance. With all of the responsibilities that the Board has, it makes sense that not every member of a community will be pleased with the Board’s actions. Disagreements can even lead to legal action against the Board. These actions are why D&O insurance is crucial to a Board of a common interest community.

Stay informed and make sure that you understand how helpful this insurance can be, and how your management team can ensure it becomes part of your overall protection.

Why is D&O Insurance Important?

As mentioned before, an Association Board has many responsibilities and the people who volunteer on these boards usually do so with the best intentions. However, in modern times, when people become disgruntled or unhappy with decisions that impact them, the word “lawsuit” seems to be thrown around quite frivolously.

D&O coverage should be in place for a Board to cover any legal issues that may arise against the Board.

Who is Covered by This Insurance?

Based on how your management team and insurance carrier work with your Board when crafting your insurance coverage, your D&O insurance can include and exclude specific people involved with Board actions.

A typical policy will cover all Board members of the HOA. This is crucial because sometimes an individual wanting to sue over something will have an issue with a specific Board Member and not the Board as a whole. With D&O insurance, the legal costs and fees for any legal claims against them are covered.

However, it is not just the Board that can be covered by this insurance. D&O insurance also has the potential to insure:

  • Committee members
  • HOA employees
  • Volunteers of the HOA

Once again, the coverage is limited to who the HOA wants the policy to protect, note, that most policies only cover current Board Members.

Are There Limits to My Community’s Coverage?

In short, yes. Every insurance policy has a limit. However, the maximum coverage limit for a D&O policy for an Association Board is determined by the size of the development and what type of amenities are offered in the community.

Are there gated entrances? Security? Pools and fitness centers?

All of this and the number of people living in the Association help an insurance agent determine how strong the protection on the policy needs to be. In order to best be prepared when deciding on D&O insurance, consult with your management team for an estimate of what these costs and coverage possibilities may be.

Goodwin & Company Helps You Understand Coverage on All Fronts

Whether your Community Association Board has questions about emergency preparedness, selecting a new Board Member, or acquiring D&O insurance, Goodwin & Company has all of the answers. Contact us today to speak with a member of our experienced team and find out how our association management team can work wonders for your community.