Many of our clients are calling to ask what they can do to buy casualty insurance which carries a deductible amount over the amount permitted by their governing documents.  It's no secret that insurance companies are forcing deductible amounts up as claims rise, and it is often the case that the governing documents limit the amount of the deductible to amounts which are no longer realistic in today's insurance markets.  If insurance is purchased which has a deducible amount over the amount set in the Declaration, the Board will be violating the governing documents.  However, if insurance is not purchased, then the buildings are not being insured at all. 

We advise that these archaic governing documents be amended to allow the Board flexibility to pick a deductible amount which conforms to the insurance products being offered, whether for today or five years down the line.  Often this is a process requiring a super majority of owners to approve, but the task needs to be done to modernize insurance deductible provisions.  We have been writing these amendments for our clients for a few years now, so please contact us if your association is in this situation.