volunteers...do we need liability insurance??

JanS1 (North Carolina)
Posts: 1

Posted:

I live in a new development(less then 6 years) in North Carolina. The developer plotted over 80 lots, where buyers bought and built their own homes. To date, there are 20 homes and of these homes there are 8 full time residents. In our deed, we are required to pay $180.00 per year for the Road and Well fee. Also in the deed, the owner/developer had it stated that he has the right at anytime to turn the Road and Well care over to the owners. Well, that time has come and the developer has asked my husband and another resident, if they would volunteer(no pay)to oversee the roads and well plus the yearly billing. Please understand, that all the homeowners were at one time residents of Florida and nobody wants to deal with a HOA. but for one person. And the only reason this person wants a HOA is because he wasn't asked to take over the maintenance, which he called and complained to the developer.
We have contacted all residents and asked their opinion about us watching over the maintenance of the road and wells...and they are with us 100%. But for this one person
Now my question....because this one person is not well liked, and he has already started trouble by reporting false problems with his water. Before we sign any papers and take over responsibility, we would like to purchase some type of liability insurance to protect our own personal assets if this man or anyone else who might decides to sue the community and the "volunteers" for whatever reason.
Since we aren't a HOA, we are guessing we can't get incorporate insurance, LLC or non-profit insurance

What kind of insurance can you recommend that we should buy to protect us "personally" from disgruntle residents... under our community's name. The developer will be meeting with us on Friday, to show us the books, we would appreciate your suggestions, before we decide if we should do this.

Your help will be greatly appreciated

Thank you,
Jan Spruce

RogerB (Colorado)
Posts: 5,067

Posted:

Jan, I think you need to do lots of research first. When the Developer plotted the lots were they required to file a Declaration of CC&Rs? Since you have a deed required annual payment of $180, I presume you probably have an HOA with the Developer controlling the Board of Directors. If you are an association you should have had association insurance since day one.I would never take responsibility for the roads, well, and collection of assessments until such time as control of the Board of Directors is turned over to the homeowners. And do not take control of the Board until there is a transition audit.

BrianB (California)
Posts: 2,820

Posted:

roger is right... two and two aren't adding up here correctly. If you have deed restrictions, you sound like an HOA. the fact that you are obligated to pay for something sounds like an HOA. Who owns the roads? And the Well? Is that a water well, is it potable?

there's a lot to this situation that remains murky to me... i wouldn't advise touching it until you had a very clear idea on what was what, who was who, etc..