Kara Ryan, ACSR, spoke with Habitat Magazine about the risks of outdated bylaws and why all shareholders should be required to carry personal insurance.
The Midtown co-op was trying to get ahead of a potential problem.
The board had decided to require shareholders to carry insurance and wanted help monitoring whether residents carried the required amount. But it hit a roadblock, said Kara Ryan, director of compliance for homeowners insurance monitoring at Mackoul Risk Solutions, “In reviewing the bylaws and the governing documents there was a clause that allowed shareholders to have their own insurance, but there wasn’t anything that required them to have insurance.”
The distinction mattered.
