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One of the most common questions we receive is about liability insurance, specifically if an HOA should carry it. The quick answer is yes! Your HOA should always carry liability insurance around the tune of $1 million dollars because it protects your association if/when someone is injured on association property.

If you’re still wondering why your association may need liability insurance, here are three quick examples:

  1. If your association has a common area with playground structures, you need have liability insurance. It isn’t a matter of if, but when a child will fall off the structure, get hurt, and become the subject of a lawsuit.
  2. Communities with swimming pools have much higher liability risks because of the dangers associated with water. Having liability insurance protects the community when someone slips on the deck or if someone drowns or almost drowns. While your board should do lots of maintenance and preventive work to keep the pool and surrounding area safe, never assume that it is enough – carry liability insurance specific to your pool!
  3. Common areas and walkways make communities feel more welcoming, but if you don’t maintain them properly someone could get hurt. For example, failing to shovel or use ice melt during winter months could cause someone to slip on ice or snow. If that happens, your HOA could be liable due to negligence.

There are so many other possible scenarios for when liability insurance is necessary, so don’t waste time hoping you’ll never need it. You will at some point, and it’s important to make sure you’re prepared. Since all communities are different, it’s impossible to detail in a single blog post how much you’ll need for liability insurance. We encourage you to make a list of amenities your community has and talk with your insurance agent to make sure you’re protected.

If your board’s biggest concern is the cost, we can assure you that the cost of carrying liability insurance pales in comparison to the cost your association will be saddled with when someone is hurt on association property. Find a knowledge agent who specializes in homeowner associations and make sure you’re getting the best value for your dollar!