Grand Firs Insurance Coverage

On Dec. 18th, the CFO of Mastro Properties informed Jim Ehnborn and Jim Selden that Michael Mastro let all of the insurance policies expire for non-payment of premiums. We are checking with the banks owning the vacant lots if they have an insurance policy that will cover the Grand Firs HOA or merely their property. Jim Ehnborn’s homeowner’s policy will not cover him for a loss assessment for a lawsuit against the HOA law suit or assessment if there is no master insurance policy enforce for the HOA. The lack of the master insurance policy may place each homeowner at great risk for a personal liability without reimbursement by the home owner’s policy. Each homeowner should verify the insurance coverage with their insurance agent.

Jim Ehnborn will be meeting with the bankruptcy trustee and the CFO this week to discuss the issue. We have a quote from an insurance agent for an HOA Master Policy with a $250,000 property damage and $2 million liability for about $1,500 premium per year for Phase 1 & 2. We are getting a quote for all 3 phases. We are requesting the courts to consider this gross negligence act committed by Michael
Mastro as sufficient cause to remove him as the President of the Grand Firs HOA. We are discussing with the banks the method of operating the HOA in 2010.