Our very favorite Coverage Corner month is here! April! It’s time for our traditional “spot the fake claim” contest. Everyone who submits the correct answer will be entered into a raffle for a gift card. Which one of these claim stories was made up by our staff?
1. A board president went rogue and hired a contractor to inspect the community roofs without notifying the other board members or the community. He then decided to go on the roof with the contractor during the inspection. Not surprisingly, the board president was injured during the inspection. What surprised everyone, though, was when he sued the association for those injuries.
2. A couple sued their HOA after an abandoned artesian well resulted in a sink hole in their living room. After years of litigation, the judge ruled in favor of the couple and said that the association board’s conduct involved gross negligence, deception and breach of duty.
3. After having the association’s insurance cancelled due to high wildfire risk, the only coverage the board could find was for ¼ of the total insurable value of the community. As a result, most home sales and refinances were halted due to lender restrictions. Even though it wasn’t for full value, the cost of the insurance was high, resulting in a special assessment to the membership. The board was sued by two members for failure to properly insure, and defending this lawsuit was not covered by their insurance. This resulted in another special assessment to pay for legal fees. The two members refused to pay either special assessment.
4. An association has storm drains running underneath the community streets to a nearby riverbed. Vandals took shelter in two of the drains and lit a fire to keep warm, which caused the pipes to collapse, resulting in almost $100k of damage and repairs.

Which of the above horror stories is the tall tale? Send your guess of the fake claim to terri@berginsurance.com by Tuesday, April 15, 2025. All correct guesses will be entered into a raffle for a $50 gift card.
Terri Guest, CIRMS, CMCA, is the Director of Client Experience & Education for Berg Insurance Agency in partnership with LaBarre/Oksnee and can be reached at terri@berginsurance.com.