Insurance for HOA

Started by SarahW2 • 4 replies • 1526 views

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SarahW2 (Virginia)
Posts: 6

Posted:

My HOA BOD don't have liability insurance. Are they required? We are quite small; just 4 homeowners. Do we have to have liability insurance on the common use road? Did we need to send an annual report to Virginia to make us an official HOA? Where would I find a manuel on the proper procepures to running a HOA. Or is running a HOA as small as ours, just whatever we want to do?

TimB4 (Tennessee)
Posts: 21,062

Posted:

Sarah,

Do your deed restrictions create covenants or regulations limiting what you may do with the land OR is it just a private road agreement?

If your just a private road agreement you may not be subject to the VA Property Owners' Association Act.

See VA § 55-508 to determine it that statute applies.

If it does not apply, then (as I understand it)you do not have to file a report with the VA CIC Board.

If your Association is not incorporated, you do not have to file an Annual report with the State Corporation Commission.

Hope this helps,

Tim

TimB4 (Tennessee)
Posts: 21,062

Posted:

Oops, I failed to address your other questions:

Quote:

Posted By SarahW2 on 10/23/2012 8:23 AM
My HOA BOD don't have liability insurance. Are they required?

The VPOAA only addresses having a fidelity bond. However, if you have common area, the Association should obtain liability insurance.

Note: only an incorporated Association may obtain the insurance (because being incorporated make the Association a legal entity).

If the Association does not liability insurance, then any legal action for damages would likely be filed against each individual homeowner. Therefore, you may want to check with your own insurance company to make sure you have enough personal insurance.

Quote:

Posted By SarahW2 on 10/23/2012 8:23 AM

Do we have to have liability insurance on the common use road?

If the Association does not liability insurance, then any legal action for damages would likely be filed against each individual homeowner. Therefore, you may want to check with your own insurance company to make sure you have enough personal insurance.

Quote:

Posted By SarahW2 on 10/23/2012 8:23 AM

Did we need to send an annual report to Virginia to make us an official HOA?

See my earlier posting

Quote:

Posted By SarahW2 on 10/23/2012 8:23 AM
Where would I find a manuel on the proper procepures to running a HOA. Or is running a HOA as small as ours, just whatever we want to do?

Fairfax County has developed one. Click this link:

Fairfax County Community Association Manual

SarahW2 (Virginia)
Posts: 6

Posted:

First, thanks for all the information! I don't if we are an association, I would suspect not. There is no common land; we all own individual parts of the road. I have maintain getting a liability policy for the road to protect all of us; the rest of the homeowners don't see the need. We will get an umbrella policy on us to protect us but unfortunately, I am a part of this HOA with no way out of it. now with the road such bad shape and winter coming, disaster could be looming. I had hope I would be able to find some loophole to force the HOA into shaping up but is not going to happen. Thanks for you help.

BradP (Kansas)
Posts: 2,640

Posted:

if the hoa has no common property then the need for liability insurance decreases...however, if you are an HOA there is still the possibility that you could get sued and therefore would be beneficial to have such a policy in place.

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