Insurance debacle

The management company of Latigo HOA, of Castle Rock, in September, received a cancelation notice from the insurance carrier. This was not communicated to the board until nearly the expiration date. Then someone, not clear who, signed an insurance policy which was a 7 fold increase, and announced to owners that consequently HOA monthly due would increase from $300 to $820. Many residents are retired and on fixed incomes, and cannot afford that increase. Pending contracts for sale have been canceled, when prospective buyers learned of the increase.

An annual meeting was called to approve or veto the budget three days before the meeting...a Zoom meeting. Proxies could be assigned, and given to persons who would vote to veto the budget, but at the meeting the Proxies were disallowed, and the management company claimed Proxies were only valid for the annual meeting...not the budget meeting. A semantics technicality. Of course, homeowners were livid. We were told that cancelation of the policy would require a 35% penalty, using the association's entire reserves. We were also informed that the new policy covered interiors, as well as exteriors., and we're required to provide our own interior coverage...essentially doubling up. The HOA is poorly managed, and this company may have made the association insolvent.