CZ - HOA Liability Insurance

Joseph Morabito, former member CZ board of directors wrote:

Hello All: I just signed up for $50,000 of additional coverage with State Farm, the maximum permitted, on our properties in Nevada and California to protect us against a judgment against our HOA that is not covered by their liability insurance. If I recall correctly, I think CZ has a $5,000,000 limit. So if there was ever a judgment against CZ in excess of that amount and a judge ordered an assessment against our Members, this insurance will pay up to $50,000. To hit that limit the judgment against CZ would have to be around $180,000,000 so unless there is some extraordinary case, $50,000 of coverage should do it. The cost in California from State Farm was just $11 a year. In Nevada for some reason it was $13 a year.

Since certain CZ Board Members named Varo and Mezger have done some pretty dumb things including ignoring the Oakview/Oakknoll legal agreement that is causing a breach of our security and exposing our Members to unnecessary liability and firing the CHP which led to more accidents on our streets and two tragic deaths, I think this insurance is very prudent. Now that I know about it, I will include it on any property that I own that has an HOA because Varo and Mezger have demonstrated that HOA Board Members do not always act in accordance with their fiduciary responsibility to protect the interest of CZ Members.

We have seen over and again that presumably smart people can do some really dumb things. Joe Morabito P.S. There is a serious accident related lawsuit pending against CZ. As yet, we have not heard the outcome of that case. I would bet the plaintiff is asking for more than $5,000,000 if the three hour deposition I had to sit through was any indication.

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Hi Joe:Thanks for sharing – we are going to jump on this one!Based on what we know, and trust me, we know a lot about this liability issue, other homeowners would be prudent to do something similar!