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Fifteen Things Every Community Association Should Know

  1. Incorporate
    • An association may have responsibilities for duties like maintenance that can cause injury or loss
    • Having your HOA incorporated protects the community and you as an individual
  2. Learn and Use Parliamentary Procedure
    • Meetings can quickly become chaotic without organization
    • Most associations use Roberts Rules of Order (or another method of parliamentary procedure) to run an efficient meeting
      • Allows both leaders and participants to contribute
  3. It's all About the Politics
    • Power is not acquired or kept by virtue of vote or appointment, but by our ability to communicate, negotiate, and empathize with each other
  4. Operate like the Business You Are
    • The association is a separate entity run by a board of directors who have certain duties to carry out
    • The board should make all decisions for the benefit of the HOA
    • The association should always run like a corporation
  5. Maintain the Proper Types and Amounts of Insurance
    • There are three main types of insurance every HOA should have:
      • Directors and Officers Insurance
        • Protects the board against lawsuits from its decisions
      • General Liability Insurance
        • Covers negligence claims
      • Property Insurance
        • Protects against potential property damage
    • If you have employees, you will also want some type of workers comp. insurance, and possibly fidelity insurance to ensure against employees stealing money
    • Insurance limits are subject to your association's specific needs, though a general rule is to have a million dollars worth of the three main types