New laws in California may affect the homeowners association, and it is wise to understand what they are. Protecting your clients requires you to know and understand California’s new legislation related to HOA policies. Prepare your communities by keeping your clients updated on new laws and explaining how they will affect their HOA. This process enables you to offer the best coverage to meet a community’s needs.
Discussing HOA Concerns on Social Media
California’s Assembly Bill 1410 addresses rules regarding the social media use of community members. Sections of this bill safeguard residents’ rights to free speech activities. Under this law, the governing documents of homeowners associations cannot ban social media conversations about community matters. Members may freely discuss association issues online, such as:
- Elections
- Legislation
- Board members
- Neighborhood concerns
Retaliating Against Members
Section 4515(e) of this assembly bill prohibits retaliation against community members for exercising their rights to free speech. Directors cannot penalize residents for using social media or other online sites to discuss or criticize association matters. Board members must also recognize homeowners’ rights to assemble peacefully.
Providing an Online Platform
A new subpart states that associations do not have to host an online forum or social media site for members. They also have no legal obligation to allow members to post on the HOA website.
Protecting Roommates
Often, associations have regulations regarding the rental of properties within the community. Under a new section, board members cannot prohibit homeowners from renting a room under the following conditions:
- The owner must live at the property
- The tenant must rent the room for more than 30 days
This new law does not protect short-term rentals.
Enforcing Violations During Emergencies
Civil Code Section 5875 from AB 1410 does not allow homeowners associations to take action against owners during a declared emergency. If the nature of a situation prevents residents from correcting a violation on time, directors cannot apply penalties. However, this rule does not apply to assessment payments.
Securing HOA Insurance
Community associations face a wide range of concerns that require specialty insurance products. You must address potential problems by discussing coverage that meets an organization’s unique needs. Policies that cover directors’ and officers’ liability, fraud, crime, cybersecurity threats, and more help mitigate risks and pay related costs.
In addition to D&O liability insurance, excess policies, and crime coverage, keep your clients updated on new laws that manage risk by preventing losses. Community organizations can avoid common mistakes when you and your clients understand the rules and best practices.
Understanding New HOA Laws
People create bills to provide solutions to typical concerns within residential communities. Clarifying the rules for your policyholders allows them to make informed decisions about their coverage needs. The new legislation in California provides direction for board members, helping HOA organizations prevent errors and oversights that can lead to lawsuits.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (855)-790-7393 to speak with one of our representatives.
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