Under the Colorado Common Interest Ownership Act (CCIOA), a Homeowners’ Association (HOA) board has an obligation to ensure that the HOA is properly insured. CCIOA outlines specific requirements for the types and amounts of insurance that must be maintained by the association. According to Section 38-33.3-313 of CCIOA, the HOA must maintain the following types of insurance:

1. Property Insurance: The association must have property insurance on the common elements and, in certain cases, on the units themselves. This insurance should cover loss or damage caused by fire and other hazards typically covered by a standard extended coverage endorsement.

2. Liability Insurance: The HOA is required to maintain general liability insurance covering all common elements, with a limit determined by the HOA board as adequate.

3. Fidelity Insurance: The HOA must maintain fidelity insurance to protect against dishonest acts by individuals handling the association’s funds.

4. Other Insurance: The HOA may be required to maintain additional types of insurance if specified in the association’s governing documents.

The HOA board is responsible for ensuring these insurance policies are in place and that they meet the minimum standards outlined in CCIOA and any additional requirements set forth in the association’s governing documents. If insurance cannot be obtained, "the association promptly shall cause notice of that fact to be hand delivered or sent prepaid by United States mail to all unit owners." Section 38-33.3-313, C.R.S.

Assuming the Board is diligently attempting to secure insurance, your remedy is likely administrative. That is, by replacing the directors. The HOA board may need to impose a special assessment on homeowners to cover the costs of obtaining the necessary insurance or raise dues.

If you would like to speak to one of our HOA attorneys to discuss the matter in more detail, please contact us at (303) 688-0944.