Frivolous Insurance Claims by HOA Members

When members of homeowner associations make a direct claim on their association’s master insurance policy that is either frivolous or clearly not covered, it has a long-lasting negative effect on the association and its members that will likely increase the premiums charged or result in a non-renewal notice. Unfortunately, associations in California cannot prevent members of associations from making direct claims on master policies. Many owners do not understand the consequences of these claims and some simply don’t care.