Can a Property Owners Association (POAA) or Homeowners Association (HOA) charge more than $5,000 in a deductible to lot owners?

The accurate interpretation of the question revolves around the authority of Property Owners Associations (POAA) and Homeowners Associations (HOA) regarding deductibles charged to lot owners. In this context, it is permissible for these associations to charge more than $5,000 in a deductible. This flexibility allows associations to establish their own financial and operational guidelines based on their unique circumstances and needs, reflecting their autonomy in managing funds for community needs.

While some associations may choose to adhere to lower deductible limits for various reasons, they are not restricted by law from imposing higher deductibles. This capability underscores the importance of delving into specific association bylaws and governing documents, which should clearly outline any applicable fees, including deductible amounts related to insurance or assessments.

It is essential to consult local regulations or the community's governing documents for any specific stipulations around deductibles. Therefore, recognizing that the option to charge more than $5,000 is available provides a better understanding of how associations operate financially and manage risk among their members.