Common interest developments are not all the same and each must have insurance that is tailored to its specific needs and its CC&Rs.

Director Liability. Directors who are responsible for the association's insurance policies may be personally liable for the loss of assets of the association and its members if they are negligent in obtaining and maintaining appropriate types and levels of insurance for the association.

RECOMMENDATION: To avoid exposure, directors should consult experienced insurance brokers who specialize in providing insurance to homeowners associations. For insurance brokers who specialize in homeowner associations, see Business Directory.