Fiduciary Duty to Pursue the Claim
The board owes the association a fiduciary duty to act in its best interest. After a covered loss, that duty includes filing the insurance claim timely, documenting the damage, and pursuing full recovery under the policy. A board that delays notice, fails to document, or accepts the first offer without review may breach that duty — and owners can hold directors personally accountable for unrecovered funds.
Who Files — and Who Speaks for the Association
Only the board (or its authorized agent) may file a claim on the association's policy. The claim is the association's — not an individual owner's. The board should designate one board-authorized point of contact for all carriers, adjusters, and contractors. Multiple directors giving conflicting instructions is one of the most common — and most damaging — mistakes in the first week.
Notice of Loss
Place every potentially responsive carrier on notice as soon as practicable — property, wind, and flood. Notice does not require a completed estimate; it requires telling the carrier a loss occurred and providing basic details. Document the date, time, method, and reference number for every notice given. Late notice is a leading reason carriers deny or reduce claims.
Duties After Loss
Every policy includes a "duties after loss" section. The association must:
- Give prompt notice to the carrier.
- Protect the property from further damage (reasonable emergency mitigation).
- Make a reasonable effort to document the damage before repairs.
- Cooperate with the carrier's investigation and adjuster inspections.
- Submit a sworn proof of loss if the policy requires it.