In the best of circumstances, the Association’s policies would meet or exceed the minimum insurance requirements of the Association’s Covenants, Conditions and Restrictions (CC&Rs). Unfortunately, this isn’t always possible: some documents have technical inaccuracies, many require coverages that simply aren’t commercially available, and some even call for provisions that aren’t necessarily in the Association’s best interest.
In some cases, the best answer may be an amendment or restatement of your governing documents, and if this is your situation, we urge you to have a knowledgeable insurance agent/ broker review the draft language of the Insurance Section before finalizing.
Regardless, you should always provide your insurance agent/ broker with a copy of your CC&Rs, and he/she should certainly be willing to review the Insurance Section with you and discuss the extent to which your current policies are in compliance. If there are any discrepancies that CAN be remedied, they should be addressed right away. As for any provisions that are either unobtainable or undesirable, your legal counsel can advise you regarding the best remedy, whether that be an amendment, a notice to the membership, or some other action.